Saudi Arabia On Edge As The U.S. Withdraws From The Middle

New Post Public Reply Private Reply Replies (0) Message Board
SaltyMutt
205
Saudi Arabia On Edge As The U.S. Withdraws From The Middle East

By Cyril Widdershoven - Sep 13, 2021

2021-09-13_o7axtvkjqf.jpg

The strategic relationship between the House of Saud and the US Administration is worsening by the day, as shown by repeated unexpected changes in president Biden’s approach to the Kingdom and its rulers. The US military debacle in Afghanistan, the pictures of which have been widely published, has caused severe stress in the minds of Arab leaders. While Washington repeatedly states that the Afghanistan move is not linked to broader US military and economic involvement in the Middle East (and North Africa), the chaos at Kabul airport has shocked the regimes of Saudi Arabia, the UAE, Egypt, and even Qatar. Washington’s unilateral actions in Afghanistan appear to have severely damaged the fundamentals of US influence in the Persian Gulf. If Afghanistan turns out to be a one-off event, there will be limited negative repercussions for Saudi Arabia, the UAE, and even Egypt, but some Washington insiders believe it is the start of something larger. All eyes are now focused on the US position in Iraq and its active involvement in Syria and Libya. Arab assessments are rather negative, expecting an all-out American military retraction in the coming months. Despite the use of honeyed diplomatic statements by the Biden Administration, the real developments on the ground are worrying. Saudi Arabia and Crown Prince Mohammed bin Salman are sure to be on edge in the coming weeks. The US’ apparent decision to put its long-term strategic relationship with Saudi Arabia under pressure is a surprising one. It has been confirmed that the US has removed its most advanced missile defense system and Patriot batteries from Saudi Arabia in recent weeks. The removal of the defense system was done despite repeated requests made by Saudi officials and royals to keep the weapon systems in place to counter continued air attacks by Yemen’s Houthi rebels. The Yemeni rebels, who are officially designated as terrorists and widely known to be supported by Iran, have been stepping up their rocket and drone attacks on Saudi civil and commercial targets (airports and oil and gas targets) again. The US unilateral decision to redeploy the anti-missile systems and Patriots from Prince Sultan Air Base outside of Riyadh is remarkable, especially taking into account that most US-Gulf allies are worried about the fall-out of the Afghanistan disaster. Analysts in Riyadh, Abu Dhabi, and Bahrain are also very worried about possible new US plans to even remove large parts of the tens of thousands of American forces in the region, now in place as a bulwark against Iran and possible insurgencies. Biden’s focus on his new military power theatre in Asia is the underlying basis for the ongoing troop movements. Most Gulf states, especially Saudi Arabia and the UAE, are especially worried due to the unsuccessful Iran JCPOA talks, leaving Tehran in a position to increase its nuclear programs.

Related: Two Ways To Play The 107% Rally In Natural Gas

For most Gulf Arabs, but also Egypt, the new Biden moves are a clear continuation of the Obama-Trump strategies, which shows a possible end to the US military and security involvement. Since Biden took office, the US-Saudi relationship has soured dramatically. Biden’s pressure (or even perceived attacks) on OPEC to open up the valves as gasoline prices in the US went up, combined with his continuation of the JCPOA discussions have severely cooled Saudi (and Emirati) love for Washington. Biden’s push to open up the 9/11 files in the coming weeks, the first batch having already been published, has only added to Saudi discontent. Washington’s obsession with MBS as the mastermind behind the Kashoggi murder has pushed the Kingdom’s rulers into a corner. At the same time, US Secretary of Defense Lloyd Austin, who is on a tour of the Gulf, stated that he has indefinitely postponed his visit to Saudi Arabia. Officials at the Pentagon said that this was due to "scheduling issues", but no Saudi will believe that. The fact that the US SecDef was able to visit Doha, Kuwait, and even Bahrain, but not Riyadh is a clear affront. Saudi Arabia remains the most powerful US ally in the region, and recent US moves in the region are unlikely to go unanswered. Anger in Riyadh could become costly for Washington in the long run. Last week, Saudi Prince Turki Al Faisal, Saudi Arabia’s former intelligence chief and well-connected in Washington, warned the Biden Administration that the Kingdom and the Middle East need to be reassured of American commitment. He openly criticized a possible withdrawal of Patriot missiles from Saudi Arabia at a time when Saudi Arabia is the victim of missile attacks and drone attacks, not just from Yemen, but from Iran. A lack of trust is emerging that is sure to hold negative results for US and Western interests. Frederick Kempe, president of the Atlantic Council, stated in an opinion piece that the situation in Afghanistan threatens U.S. President Joe Biden’s narrative that Washington is “once again a reliable ally and partner, following the uncertainties that grew among them during the Trump administration.” Biden’s move to widespread declassification of documents relating to the September 11, 2001 attacks will also have major repercussions. Even if no anti-Saudi facts emerge, the continuing media and political barrage on the Kingdom is likely to force it to reassess its position.

In the coming months, a major geopolitical and economic shift will emerge in the Gulf region. The already weakened US position is clear, and Biden does not appear to be enhancing American interests. Saudi Arabia, the UAE, and others will be looking for new power players, and some are already knocking at the door (Russia, China). While a complete loss of influence in the region is unlikely, the impact of statements coming from Washington has certainly diminished. The Kingdom’s ongoing reorientation to the East is being pushed by Washington, opening the doors for Moscow, Beijing, and Delhi. OPEC+ policies will also be impacted by Biden’s moves, as the Kingdom, Abu Dhabi, and Moscow hold new power in their hands. A stronger OPEC+ or China (Moscow/India)-GCC relationship will be more costly for Washington than Biden’s Administration appears to understand. The Energy-Military-Economic Nexus still exists, but now with other players holding the strings. Ultimately, hydrocarbons still fuel the military and the global economy, and Biden is playing a dangerous game.

By Cyril Widdershoven for Oilprice.com

https://oilprice.com/Energy/Energy-General/Sa...-East.html
Scroll down for more posts ▼

Top 10 Most Recent News Articles

AEC Firms Revamp Strategies Amid Talent Tug-of-War

Updated Category News Views 3

The State of Compensation in AEC Sit back and chew on this—AEC firms are playing a whole new ball game when it comes to compensating their talent. FMI Corporation’s 2026 Compensation Trends Study is putting a spotlight on what really goes on behind the scenes in architecture, engineering, and construction firms. This is about more than just tossing some coin for a...

Continue Reading
HIMS Faces Class Action: Investors Eye Leadership

Updated Category News Views 3

Another Day, Another Lawsuit: Hims & Hers in Hot Water Here's the latest conundrum in the corporate world, folks. Hims & Hers Health, Inc. (NYSE: HIMS) is caught up in a class action lawsuit that could shake up the telehealth scene. Investors who found themselves knee-deep in losses during the class period from August 2025 to July 2026 might want to pay attention. The...

Continue Reading
Curaleaf Eyes Growth: Conference Signals Opportunities

Updated Category News Views 0

Curaleaf's Strategic Move: Getting in Front of Investors Here comes Curaleaf Holdings, stepping into the spotlight with their eye on increasing investor engagement. Announcing their participation in the ATB Cormark Capital Markets 2026 Fall Institutional Investor Conference, the folks at Curaleaf aren't just talking—they're putting their top brass under the lights. You...

Continue Reading
ITP Media's Bold Move: Ready for Asian Market Surge

Updated Category News Views 3

Pushing Boundaries: ITP Media Group Eyes Asia ITP Media Group isn't here to tiptoe around the media market; they're diving headfirst with the recent takeover of Heart Media Group. A bold move, some might say, in this volatile world of media mergers and acquisitions. But let's break down what this really means. A Strategic Bet on Luxury To start, ITP Media is beefing up...

Continue Reading
Veteran Suicide Prevention: The Urgency Behind CVN's Push

Updated Category News Views 3

Veteran suicide is a crisis staring us square in the face, with rates 60% higher than the general population. It's a grim reminder that the mental toll on those who've served is a deep chasm hard to bridge. Cohen Veterans Network (CVN) is stepping up to the plate with a new campaign dubbed 'Ask Anyway: Conversations to Save a Life'. This isn't just any awareness...

Continue Reading
Guardio's AI-Driven Cybersecurity Triumphs at $1.1B Value

Updated Category News Views 0

A New Chapter in Cybersecurity's Playbook Guardio just hit a milestone that'll make any well-seasoned investor sit up and take notice. Their recent $1.1 billion valuation, fueled by a fresh $40 million funding round, underscores a seismic shift in the consumer cybersecurity landscape. We're talking a lineup of some seriously smart money like Assaf Rappaport, co-founder of...

Continue Reading
TVEyes Archive+: Revolutionizing Media Intelligence

Updated Category News Views 3

TVEyes Archive+ Takes Media Intelligence to New Heights Dishing out another update here, folks. TVEyes, the media intelligence powerhouse, just kicked off something that's got the potential to change the strategic media game—they call it Archive+. This tool isn’t just plundering old tapes; we're talking nearly two damn decades worth of historical broadcasts and...

Continue Reading
Pulnovo's PADN System Revolutionizes PH-LHD Treatment

Updated Category News Views 0

Pulnovo's Breakthrough in Heart Disease Management When Pulnovo Medical rolled out the PADN-HF-PH trial results at the ESC Congress 2026, seasoned investors like me sat up and took note. The trial, hot off the presses in The New England Journal of Medicine, unveiled how Pulmonary Artery Denervation (PADN) is throwing a wrench into the gears of conventional treatment of...

Continue Reading
MemoryDriver Relaunches with Navigation Challenge

Updated Category News Views 2

MemoryDriver's Relight: A Blazing New Course in Brain Health Look at this: Evon Medics is back with a bang, and they're handing us more than just another mind-numbing app update. On September 15, they're flipping the switch on MemoryDriver, their revamped brain-training gig, with a national 'Beat the Clock' Challenge. It’s up for grabs, totally free, and full of...

Continue Reading
Mitrade EU Enhances Investor Safety with New Insurance

Updated Category News Views 3

Mitrade's New Insurance: A Safety Net? Mitrade EU is amping up its game with some fresh insurance perks that catch the eye. They're slapping on some extra insolvency protection for clients trading under their CySEC license. Now that sounds like a financial shield anyone would want. Basically, they're adding another layer to the basic regulatory protections, and without...

Continue Reading

Top 5 Most Recently Viewed Articles

Adverum Biotechnologies Awards Stock Options to New Hire

Updated Category News Views 170

Adverum Biotechnologies Makes Inducement Grants Adverum Biotechnologies, Inc. (NASDAQ: ADVM) has made headlines recently by announcing the grant of stock options to a new member of their team. This strategic move is part of Adverum’s 2017 Inducement Plan, which is designed to attract and retain top talent by providing equity opportunities that align the interests of...

Continue Reading
Vanguard's February 2025 ETF Cash Distributions Explained

Updated Category News Views 304

Vanguard's February 2025 ETF Cash Distributions Vanguard Investments Canada Inc. has announced important cash distributions for various Vanguard ETFs. According to the latest update, unitholders of record on March 3, 2025, will receive distributions on March 10, 2025. Understanding these distributions is vital for investors, as they can influence investment decisions and...

Continue Reading
JetBlue Offers Special Nonstop Flights to the Big Game in New Orleans

Updated Category News Views 315

JetBlue Announces Special Nonstop Flights for Sports Fans JetBlue (NASDAQ: JBLU) is excited to provide sports enthusiasts with an exceptional travel experience this game season. By launching limited-time nonstop flights from major hubs like Newark and New York’s JFK Airport to the vibrant city of New Orleans, JetBlue aims to accommodate hundreds of additional fans eager...

Continue Reading
Examining Super Micro's Challenges Amid Regulatory Scrutiny

Updated Category News Views 194

Super Micro Computer Inc. came under fire in 2024 when the US Justice Department launched an investigation into allegations made by a former employee. This probe isn't just a minor hiccup; it follows closely on the heels of Super Micro settling with the SEC for $17.5 million over prior accounting issues back in 2020. Traders weren't just watching from the sidelines—they...

Continue Reading
ONEOK's Commitment to Dividends Shows Strong Financial Stability

Updated Category News Views 151

ONEOK Declares Consistent Quarterly Dividend The board of directors at ONEOK, Inc. (NYSE: OKE) announced a quarterly dividend of $1.03 per share. This declaration remains unchanged from the previous quarter, leading to an annualized amount of $4.12 per share. This consistency highlights ONEOK's reliability and commitment to its shareholders. Dividend Payment Schedule...

Continue Reading