Tired of the opportunistic policies of both Britain and the Soviet Union, the Shah circumscribed contacts with foreign embassies. Relations with the Soviet Union had already deteriorated because of that country's commercial policies, which in the 1920s and 1930s adversely affected Iran. In 1932 the Shah offended Britain by canceling the agreement under which the Anglo-Persian Oil Company produced and exported Iran's oil. Although a new and improved agreement was eventually signed, it did not satisfy Iran's demands and left bad feeling on both sides.