This study has a twofold purpose: to demonstrate the causes of and various responses (British domestic, Iranian, Arabian, American, and Soviet) to the British decision to withdraw and to illustrate the regional political consequences of that withdrawal. The British Labour Government decision resulted primarily from an economic crisis. The various responses to the decision seem to have been motivated by national self-interest. Some of the Gulf states-- Iran, Iraq, Saudi Arabia, and Kuwait--predicted that the consequences of the withdrawal would be desirable while others--Bahrain, Qatar, and the United Arab Emirates-- predicted that the consequences would not be beneficial. In some ways, both sides were correct in their predictions.