In 1920, Sheik Ali Banu Bu Ali, a relative of Sultan Taimur bin Faisal, rebelled in the northern town of Sohar and proclaimed himself Sultan but was deposed by the British in 1932.
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Iraq Petroleum, along with its operator of oil exploration, Petroleum Development Oman, was owned by European oil giants including Anglo-Iranian Oil's successor British Petroleum which encouraged the British government to extend their support to the Sultan.
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Oil exploration had begun in the early 1920s by the Anglo-Persian Oil Company.
Before 1940, the Indian rupee and the Maria Theresa Thaler (known locally as the rial) were the main currencies circulating in Muscat and Oman, as the state was then known, with rupees circulating on the coast and Thaler in the interior.
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To prevent the Imam interfering with the settlement over Buraimi, a battalion-sized task force, the Muscat and Oman Field Force, to which some British officers were attached, was raised, and occupied the town of Ibri.