Despite the expressed Saudi aim of bringing about a respite in the fighting, there has been little change in the dynamics of the conflict.
The April 12 OPEC+ deal to cut oil production that ended the disastrous five-week Saudi Arabia-Russia price war is a short-term fix for the global industry, but will not resolve the larger problem of over-production. The price war heightened animosity between Riyadh and Moscow and calls into question whether the OPEC+ partnership will ever be the same again.
The Houthis’ lack of interest in halting their military operations could displace millions of civilians in the midst of a potential COVID-19 outbreak, defeating the very purpose of the cease-fire.
The Middle East is facing an unexpected turning point. The region will not look the same after COVID-19 as it did before it. The geoeconomics and geopolitics of the world are in free fall because of COVID-19, the oil price war, and a severe economic shutdown. For the Middle East and the Gulf monarchies in particular, the oil price war against Russia and U.S. shale and the shutdown of economies around the world have increased the pressure on the Gulf’s already-depleted financial resources, which usually act as a safety valve for the turbulent region.
Saudi Arabia’s recent decision to call for an urgent OPEC+ meeting was driven by a simple logic. In spite of its obvious advantages over other oil producers, the kingdom is still taking serious risks as it pursues an oil price war.
This Thursday, a postponed virtual meeting of “OPEC+ and Friends” will determine the level and seriousness of participation in a global oil pact.
On March 26, 2015, the former Saudi ambassador to the U.S., Adel al-Jubeir, announced the beginning of a Saudi-led military campaign in Yemen to curtail Iran’s influence in the country, reinstate the regime of President Abed Rabbo Mansour Hadi in Sanaa, and deter the Iranian-backed Houthi threat. Five years on, however, the objectives of Operation Decisive Storm are far from realized, and the situation on the ground is as volatile as ever.
Saudi Arabia declared a price war against Russia in early March to prove a point: that it can offer an unprecedented supply of 12.3 million barrels per day (bpd), way above the record 11 million bpd it reached in November 2018, and expand its market share at the expense of Moscow. As the coronavirus pandemic brings the world to a standstill, the question is how long it can sustain this war.
MEI’s Paul Salem, Khaled Elgindy, and Fatima Abo Alasrar join host Alistair Taylor to discuss the coronavirus pandemic’s impact on the Middle East as nations scramble to contain the spread of COVID-19 and the massive humanitarian and economic toll it could take on already vulnerable populations.
From Morocco to Afghanistan, the scholars and experts at MEI take a closer look at how the COVID-19 coronavirus pandemic is affecting the Middle East.
Yasmine Farouk and Jean-Francois Seznec join guest host Gerald Feierstein to discuss the past week’s political and economic drama in Saudi Arabia following the detainment of several members of the Saudi royal family and the nation’s launch of an oil price war with Russia, which triggered a massive drop in global oil prices.
Doubts about Saudi Arabia’s internal stability could not come at a worse moment.
If OPEC’s history is anything to go by, everyone suffers from an oil price war.
On March 1, the Iran-backed Houthis took control of the city of al-Hazm, the capital of al-Jawf Province, after weeks of fierce clashes with local tribes and Yemeni government forces. Incompetence, lack of unified leadership, and the absence of a military strategy by the Yemeni government and the Saudi-led coalition have played into the hands of the Houthis.
On Feb. 9, 2020, after five years of involvement in Yemen’s civil war as part of the Saudi-led coalition, the UAE’s leadership celebrated the completion of its phased military withdrawal from the country in a ceremony at Zayed Military City. Although the UAE’s withdrawal has provided an exit strategy from the stalemate in Yemen, it neither suspends Abu Dhabi’s role in the coalition nor curtails Emirati influence on the ground.