The amendments have been designed to provide relief on both the individual and corporate levels.
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.
This is not the time to hang out the “Mission Accomplished” banner for the MFO. At a nominal cost to the U.S. in money and manpower, for nearly 40 years, the mission has been a phenomenal success. At a time when the U.S. commitment to the region is being viewed with increasing skepticism, the MFO is a prime example of U.S. capacity to organize and lead a multinational effort to support regional security and stability.
During the Munich Security Conference in February 2020, Saudi Arabia’s foreign minister, Prince Faisal bin Farhan, signaled that the Saudi-Houthi backchannel talks were not “ready to move to the highest level.” However, the situation changed following the Houthi ballistic missile attack on Jazan and Riyadh in late March, and on April 8, the coalition’s Joint Forces Command
Since the 1970s “oil boom,” Indian migration to the Gulf has served as a valuable source of income for the nation and as the backbone of the economies of high-migration states such as Kerala through the transfer of remittances. However, the outlow of Indian migrants to the region has recently slackened while return migration has increased due to economic slowdowns, fluctuating oil prices, and changes in Gulf labor policies. The future of India-Gulf migration is further clouded by the Coronavirus pandemic, which poses unprecedented health and livelihoods challenges for the millions of Indians working in the Gulf, as well as for the families and communities that depend on them — and presents a daunting test for the Indian government.
Egypt’s three top sources of foreign revenue — tourism, remittances, and the Suez Canal — are likely to be hard hit by the crisis.
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.
Cratering demand for Qatar’s main exports has reduced its income to a fraction of what it was last year, but its nest egg is held in very illiquid assets.
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.
The Sinai-based Multinational Force & Observers (MFO) will soon celebrate its 41st anniversary. Like most of what the MFO does, recognition will be low key and understated. The MFO has always operated under the radar, but this may soon be changing.
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.