Research & Commentary Results

Saudi Arabia surprised the global oil and gas industry earlier this month by reshuffling its top two energy positions. Long-serving technocrat Khalid al-Falih was ousted as chair of Saudi Aramco one day and as head of the Ministry of Energy the next.

Randa Slim, director of MEI’s Conflict Resolution and Track II Dialogues initiative, and MEI Senior Fellow Alex Vatanka join guest host Jerry Feierstein to discuss recent regional developments that may be early indicators of an emerging round of diplomatic talks between the United States and Iran, and what renewed talks might be able to achieve.

Unlike most other goods, the inflation-adjusted prices of oil and oil derivatives actually became cheaper in the years after the Syrian uprising and the loss of most of the country’s oil fields. Iran stepped in to fill the gap by shipping oil by sea through the Suez Canal. In recent months, however, these shipments seem to have ground to a halt, crippling regime-controlled areas. This paper examines several competing explanations for the slowdown in Iranian oil shipments, explores a range of possible responses for the Assad regime, and takes a closer look at the implications for the regime, its allies, and regular Syrians.

This week’s briefing on recent news and upcoming events in the region featuring Randa Slim, Gerald Feierstein, Alex Vatanka, Robert S. Ford, and Michael Sexton.

The Israeli-Palestinian conflict remains a destabilizing element in an already volatile Middle East. The Palestinians are too weak to wrest their independence from Israel. But as long as their right to self-determination is denied, they are likely to engage in regular violence targeting Israel. Absent outside intervention, Israel is powerful enough that it can suppress Palestinian demands for freedom — but it is not able to completely pacify the Palestinians. Thus, the conflict continues, punctuated every few years by rounds of more significant violence.

In late July, Russian officials met with Yemen’s Prime Minister Maeen Abdulmalik and representatives of the Houthi Supreme Political Council to discuss the resolution of the Yemeni civil war. These meetings underscored Russia’s ability to balance favorable relations with Yemen’s internationally recognized government and the Houthis: Moscow supported Abdulmalik’s vision for a political solution to the Yemeni civil war and concurred five days later with Houthi criticisms of U.S. military deployments to the Persian Gulf.

Elizabeth Tsurkov has courageously put forward what she calls a progressive case for staying in Syria. I would regard myself as progressive but I’m not convinced, even if I would have supported many of her arguments in the past. In arguing for an indefinite presence in Syria, Tsurkov relies on the notion that staying gives the U.S. influence over Ankara and Moscow, serves as a counter to Tehran, and pressures the Assad regime, possibly even creating “internal fissures in its senior ranks” and causing “the Assad regime to institute reforms that would benefit all Syrians.” Those fissures and reforms have been desired for the past eight years but have not yet appeared. It would be easier to argue that withdrawal is more likely to cause them, and to pressure Ankara and Moscow into countering Tehran.

The long-awaited summit between U.S. President Donald Trump and Pakistani Prime Minister Imran Khan raised more questions than it answered. Nevertheless, the message emerging from the meeting has major implications for regional stability and the Afghan peace process. 

OPEC+ nations have ended speculation about whether they would continue oil production cuts by agreeing to a nine-month extension. Led by the global petroleum powers Saudi Arabia and Russia, the group agreed on July 2 to extend the current level of cuts until the second quarter of 2020.

When it was signed four years ago, the Iran nuclear deal was widely perceived as a diplomatic triumph, a move that would help reintegrate Iran into the global economy and restore its relations with the West. Things haven’t quite turned out that way, however.

U.S. crude oil and energy product exports surged to an all-time high in the third week of June, making the country a net exporter of oil and products for the third time since November 2018. This change lends credence to American officials’ presumption that amid growing U.S.-Iran tensions in the Persian Gulf, Washington is less compelled to police oil transit routes in the region, especially the Strait of Hormuz, than it was during the 1980s. However, while the U.S. is less reliant on oil imports than in the past, it still remains dependent on Gulf producers, albeit in different ways.

Violence has been flaring up at an alarming rate in the southern Syrian province of Daraa, amid dozens of unclaimed attacks by gunmen. Over the last three months, assassinations, checkpoint attacks, fires, and sporadic clashes have wreaked havoc in the area and signaled a potential return of conflict. 

In this week’s Monday Briefing, MEI experts Alex Vatanka, Gonul Tol, Gerald Feierstein, Marvin G. Weinbaum, Rauf Mammadov, and Robert S. Ford provide analysis on recent and upcoming events including Iran’s announcement that it has exceeded its enriched uranium limit, Turkey’s purchase of Russia’s S-400s missile defense system over American objections, an Emirati announcement that it will downsize military involvement in Yemen, the resumption of intra-Afghan peace talks, Russia’s continuing embrace of OPEC+ oil production cuts, and the emergence of potential threats to Tunisia’s democracy.

The Trump administration’s economic workshop in Bahrain produced some noteworthy moments that reflected recent changes in Israeli-Gulf relations, but it fell well short of its original declared intent. Neither Israeli nor Palestinian officials attended, and it did not conclude with any tangible steps to advance the peace process.

Competition for security and energy is at the center of recent developments in the Eastern Mediterranean. Countries from Egypt to Turkey are moving to secure, exploit, and market their (not always fair) share of the game-changing offshore natural gas reserves. Russia, China, and Iran are securing port facilities, and in the case of Russia, drilling rights, in Lebanon and Syria.