Earlier This specific year, Saudi Arabia, the earth’s largest oil producer, promised Trump in which the item could hike oil supplies to help offset supply losses through Tehran along with ease prices. although if the U.S. punishes Riyadh, in which could push the kingdom to withhold oil supplies along with allow prices to spike — a move in which may boost Iranian coffers.
Iranian crude is actually already selling at more than $80 per barrel, Iranian Vice President Eshaq Jahagiri told local media This specific week. in which means even with crude exports halved, the country will still hold the same income as before, he added.
In a statement on Sunday, Saudi Arabia’s Foreign Ministry said in which “if the item receives any action, the item will respond with greater action.” the item also warned in which “the Kingdom’s economy has an influential along with vital role inside the global economy” — a phrase in which some observers interpreted as a veiled threat. The next day, the Saudi embassy in Washington, D.C. urged the international community to avoid jumping to any conclusions.
The statement avoided any direct reference to using oil as a weapon although “the item’s clear in which was the subtext,” Mohammed Ayoob, a senior fellow at the Center for Global Policy along with professor at Michigan State University, wrote in a Tuesday note published on the Australian Strategic Policy Institute. The kingdom has previously used energy as a political tool, most famously during the 1973-1974 oil embargo.
“A Saudi decision to cut oil production even by as little as 10% could send international energy markets into turmoil with oil prices rising well above US$100 immediately,” Ayoob warned. Such a development, he said, could likely make Iran “the primary beneficiary of the Khashoggi affair.”