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The date is the third of March 1938, oil had been struck in Arain. The Arainians knew the value of oil in the eyes of the men of Europe, and after years of a turbulent economy seeing the fall of the price of pearls due to Japanese pearl cultivation, the Arainians needed a kick back into their economy back from the depths of the Great Depression, that kick; black gold. The British geologists and oil engineers who had discovered the oil also knew this value and were determined to come to agreement with the Emir of Arain, Sheikh Abdulaziz bin Abdullah.
Two years earlier, British oil engineers and geologists headed into Arain to analyze the situation of oil and to find ways to exploit it after the interest in oil exploration in the Arabian Peninsula due to oil being struck in Bahrain in 1932. The European powers were desperate for oil, the fuel to power their war machines. From their ships to their vehicles, oil was vital. A promising site was chosen by the allies in an area nearby the village of Dammam. After several failed attempts at discovering the oil, the team were on the verge of quitting but chief geologist Max Steineke persevered insisting on the team to dig deeper, even when the site named Dammam No. 7 was plagued by cave-ins, stuck drill bits and other problems, before the drillers finally struck oil on 3 March 1938.This discovery would turn out to be first of many, eventually revealing the largest source of crude oil in the world.
A year later the first oil wells were constructed. In an agreement signed by the Emir of Arain and British Chief Political Resident in the Gulf Trenchard Craven William Fowle representing the British government, the Emir agreed to supply Britain with oil seventy five percent off the normal international market price for the next twenty years and in exchange the British will explore for more oil reserves and assist in the exploitation of oil in Arain as well as teach the Arainians how to exploit the oil and provide Arain with two ships capable of transporting the barrels. Never had there been a better time for the agreement, months later in September France and Britain declared war on Germany.
During the Second World War, Arain became one of the largest suppliers of oil to the allies a decision it would not come to regret. During June of 1941, Iran disputed Arain's control of Arabi Island a small Island 0.1 kilometers squared in size nearby a larger Island under the control of Iran known as Farsi Island after Arain began construction of a small dock and a naval fort on the island. Arain responded saying that the island was used for many decades by Arainian pearl divers who dived for pearls around the islands even docking and resting there for days at a time before returning to Arain and as such Arain has historical claim on the island. This dispute eventually led to the looting of an Arainian ship carrying barrels of oil to supply allied troops, the ship however was free to go however two Arainian crew members and the captain were killed for resisting.
This attack was condemned by the British, who by this time were holding meetings with the Soviets plotting an invasion of Iran for what they accused was the Shah's sympathy and friendly ties with the Axis powers though Iran was officially neutral. Several neighboring states became entrenched in the situation.
