Worsening Iran-Saudi tensions could harm regional economy, ISIL fight

Global Business

Worsening Iran-Saudi tensions could harm regional economy, ISIL fight TN3

Iran-Saudi tensions are worsening as more of Saudi Arabia’s allies cut ties with Iran. Kuwait has recalled its ambassador to Iran and Sudan and Bahrain have severed diplomatic ties with Tehran as well. The dispute began with the Saudi execution of a prominent Shia cleric on terror charges.

CCTV America’s Nathan King reports from Washington.

Worsening Iran-Saudi tensions could harm regional economy, ISIL fight

Worsening Iran-Saudi tensions could harm regional economy, ISIL fight

Iran-Saudi tensions are worsening as more of Saudi Arabia’s allies cut ties with Iran. Kuwait has recalled its ambassador to Iran and Sudan and Bahrain have severed diplomatic ties with Tehran as well. The dispute began with the Saudi execution of a prominent Shia cleric on terror charges.

After protests against the execution at the Saudi Arabian Embassy in Iran in turned violent, Riyadh said the attack was part of a wider pattern of Iranian aggression. Saudi Arabia then not only cut off diplomatic ties, but also trade and transport links.

Saudi Arabia and Iran are regional powerhouses, but when it comes to trade the two do not have deep ties. Bilateral trade is by some estimates around $150 million. Iran’s government also said it can cope with Riyadh’s efforts to isolate Tehran diplomatically.

Iran is on the threshold of getting $100 billion in funds that were frozen during the nuclear standoff with world powers. Now that a nuclear deal is done, those funds as well as billions in new global investment is set to flow into Iran.

Escalating Iran-Saudi tension could also benefit both oil producers if fears over a conflict push global oil prices higher. Both nations have been suffering as oil prices sit at seven-year lows. So far, oil prices have not moved upward.

The biggest economic impact could be felt region-wide, especially if tensions continue for a long time. Washington wants Saudi-Iranian co-operation to help end Syria’s five-year civil war, and the spat threatens to splinter the delicate international coalition against ISIL.


Former US ambassador Robert Jordan on Iran-Saudi tensions

CCTV America’s Owen Fairclough interviewed Robert Jordan, the former U.S. Ambassador to Saudi Arabia from 2001-2003, about the latest Middle East tensions. Jordan is the author of “Desert Diplomat: Inside Saudi Arabia following 9-11“.

Former US ambassador Robert Jordan on Iran-Saudi tensions

Former US ambassador Robert Jordan on Iran-Saudi tensions

CCTV America’s Owen Fairclough interviewed Robert Jordan, the former U.S. Ambassador to Saudi Arabia from 2001-2003, about the latest Middle East tensions. Jordan is the author of “Desert Diplomat: Inside Saudi Arabia following 9-11”.


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Former US ambassador James Smith on rivalry between Tehran and Riyadh

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