Iran was the second Muslim-majority country to recognize Israel as a sovereign state after Turkey. Israel viewed Iran as a natural ally as a non-Arab power on the edge of the Arab world.
After the Six-Day War, Iran supplied Israel with a significant portion of its oil needs.
2. Though Iran recognized Israel in and supplied it oil after Six Day War, before the partition of Palestine, Mohammad Reza Pahlavi predicted that the partition would lead to generations of fighting. (Iran along with India and Yugoslavia opposed the partition plan.)
3. Brisk trade between the countries continued until 1979, with Israeli construction firms and engineers active in Iran. Iranian-Israeli military links and projects were kept secret, but included the joint military project Project Flower, an attempt to develop a nuclear missile.
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