Oil and Saudi-Iranian Tensions (2001-2019)

Document Type : Original Article

Author

Assistant Professor of International Relations, Faculty of Law and Political Science, Kharazmi University

Abstract

Iran and Saudi Arabia are going through one of their worst periods of their relations. They have long been serious competitors for each other in the Middle East, and the rivalry seems to have intensified in the last ten years and has had farreaching consequences for both countries. These two regional powers both are major oil exporting countries and naturally in any main issues, oil could be account as an important tool to pursue goals in foreign policy. Iran and Saudi Arabia have a long history of differences about oil policies but one of the most severe differences appeared in 2011-2019, along with escalating tensions between the two countries in the region, which heavily shaped oil market trends in this period. So the main question of the article centered about how has the escalating tension between Iran and Saudi Arabia in 2010-2019 affected the oil sector of the two countries? The answer given to this question as a hypothesis is that the escalating tensions between Iran and Saudi Arabia has led the officials of the two countries to resort to aggressive use of oil against the rival which have caused serious damages to the oil sector of both countries.

Keywords


Article Title [Persian]

نفت و تنش‎های میان ایران و عربستان سعودی(2001-2019)

Author [Persian]

  • سعید میرترابی

Keywords [Persian]

  • ایران
  • عربستان سعودی
  • حوزه نفت
  • رقابت منطقه ای
  • خاورمیانه
Al-Akhbar Management, (Mar 06 2015) “Assad: Our Battle With Saudi Is Open-Ended”. http://english.al-akhbar.com/content/assad-our-battle-saudi-open-ended
Al-Khatteeb, Luay  (2015)”Saudi Arabia’s economic time bomb”, Brookings Institute, December 30.
Al Naseer, Faisal (2015) “Saudi Arabia Sells Off Wealth Fund as Yemen War Cost Rises”, Sputnik News, October 13.
Alaraby (April 5, 2017),“Trump ‘Understands Iran Better than Obama’: Bahrain,” available from https:// www. alaraby. co.uk/ english/ news/ 2017/4/5/ trump-understands-iran-better-than-obama-bahrain.
Altoraifi, Adel ( 2012) Understanding the role of state identity in foreign policy decision-making: the rise and demise of Saudi-Iranian rapprochement (1997–2009). PhD Thesis London School of Economics (LSE), UK.
Balali, Mehrdad (2014) “Iranian President Blames Oil Price Fall on Political Conspiracy,” Reuters, December 11. http://in.reuters.com/article/2014/12/10/iran-oil-idINKBN0JO25S20141210.
Blas, Javier (2016) ”In oil price battle with Saudi Arabia, it’s advantage for Iran” world oil magazine, 9/27/2016 http://www.worldoil.com/news/2016/9/27/in-oil-price-battle-with-saudi-arabia-it-s-advantage-iran
BP Statistical Review of World Energy, June 2016.
Chubin, Shahram and Charles Tripp (1996) Iran–Saudi Arabia Relations and Regional Order, London: Oxford University Press.
CNN (September 17, 2019), “Source: ‘High Probability’ Saudi Attack Launched from Iranian Base Near Iraq”, Tim Lister and Nic Robertson. https://www.cnn.com/ 2019/09/17/ middleeast/saudi-attack-iran-base-intl/in....
Dettmer, Jamie (2015) “Iran Accuses Saudis of Oil Conspiracy,” Voice of America, January 6. http:// www. voanews. com/ content/ iranaccuses- saudis- of- oil-conspiracy/2587985.html.
Downs, K. (2012/3). A Theoretical Analysis of the Saudi-Iranian Rivalry in Bahrain. Journal of Politics & International Studies , 8(): 203-237. Retrieved from: …. 
Euro news (2015/12/15)” What do Russia and Iran think about Saudi Arabia’s coalition initiative?” http://www.euronews.com/2015/12/15/what-do-russia-and-iran-think-about-saudi-arabia-s-coalition-initiative.
Financial Times (2012) "Saudi Arabia Will Act to Lower Soaring Oil Prices," March 28.
Egan, Matt(2016)”Saudi Arabia is trying to steal Iran's biggest oil customer: China”, CNNMoney report (New York). https://money.cnn.com/2016/03/02/investing/ saudi-arabia-shipping-more-oil-to-china-iran/
Gause, III (2015)” Sultans of Swing? The Geopolitics of Falling Oil Prices”, Foreign Policy Brookings, April. https:// www. brookings. edu/ wp- content/ uploads/ 2016/06/ Falling-Oil-Prices-English.pdf.
Haaretz (April 19, 2017), “U.S. Defense Chief Mattis: Wherever There’s Trouble in the Middle East, You Find Iran,”, available from http://www.haaretz.com/middle-east-news/iran/1.784394
Karami, Kamran (2012). ”Role of Saudi Arabia in Supporting West’s Oil Sanctions Policy against Iran” Iran Review, JULY 4. http://www.iranreview.org/content/ Documents/Role_of_Saudi_Arabia_in_Supporting_West%E2%80%99s_Oil_Sanctions_Policy_against_Iran.htm.
Khalaf, oula and Abigail Fielding Smith (2013), "Qatar bankrolls Syrian revolt with cash and arms". Financial Times, May 16.
Krauss, Clifford (2011)” Saudi Arabia, Defying OPEC, Will Raise Its Oil Output” The New York Times, June 10.
Legro, Jeffrey W. and Andrew Moravcsik (1999) “Is Anybody Still a Realist?” International Security Vol. 24, Issue 2 (5) http://web.ebscohost.com/ehost/pdf? vid=61&hid=102&sid=4d62655b-fca5-4088-a3a7-5b2db0bbf58e%40sessionmgr111 (accessed June 16, 2010).
Luft, Gal and Anne Korin,(2009) “Realism and Idealism in the energy security debate”; in: Gal Luft and Anne Korin, eds. Energy Security Callanges for the 21 st Century. А Reference Handbook (United States of America: ABC-CLIO).
Mabon, Simon (2016) Saudi Arabia and Iran: Power and Rivalry in the Middle East, London: IB Tauris.
Pollack, Kenneth M. (8 January 2016). "Fear and Loathing in Saudi Arabia", Foreign Policy. http://foreignpolicy.com/2016/01/07/fear-and-loathing-in-saudi-arabia/
Reuters (February 7, 2012)”Exclusive - China buys up Saudi, Russian oil to squeeze Iran” https:// www. reuters. com/ article/ uk- china- oil- supplies- idUKTRE8161QA20120207? mod=  related&channelName=worldNews.
Reuters (January 17, 2016 )”Somalia received Saudi aid the day it cut ties with Iran: document” https:// www. reuters. com/ article/ us-somalia- saudi- iran/ somalia-received- saudi-aid-the-day-it-cut-ties-with-iran-document-idUSKCN0UV0BH
Reuters (February 6, 2015)”Saudi Arabia cuts March Arab Light crude OSP to Asia” http://www.reuters.com/article/us-saudi-oil-price-idUSKBN0LA0WH20150206.
Schouten, P. (2009) ‘Theory Talk #25: Antonio Marquina on the Deceit of Globalization, Energy Security and Challenges to European Foreign Policy, Theory Talks, http://www.theory-talks.org/2009/01/theory-talk-25.html (13-01-2009)
Shimkus, John (2011) “Saudi Arabia Using Oil as an Economic Weapon Against Iran”, Energy Digital. http://oilprice.com/Energy/Crude-Oil/Saudi-Arabia-Using-Oil-As-An-Economic-Weapon-Against-Iran.html
SIPRI (February 22, 2016) “Asia and the Middle East lead rise in arms imports; the United States and Russia remain largest arms exporters”.
Stratfor Worldview (May 30,2012) "Oil: A Weapon against Iran," https://www. stratfor.com/ geopolitical-diary/oil-weapon-against-iran.
The Christian Science Monitor(February 8, 2016)” To counter Iranian rival, Saudi Arabia steps up Washington lobbying”, by Taylor Luck. https://www.csmonitor. com/ World/ Middle-East/2016/0208/To-counter-Iranian-rival-Saudi-Arabia-steps-up-Washington-lobbying
The Guardian (12 January 2016) “Why has Sudan ditched Iran in favour of Saudi Arabia?” https://www. theguardian. com/ world/ 2016/jan/12/sudan- siding- with-saudi-arabia-long-term-ally-iran.
The New York Times (January 6 2012) “Pressed by U.S., Asian Countries Look for Ways to Reduce Purchases of Iranian Oil”. http://www.nytimes.com/ 2012/01/07/ world/ middleeast/ amid- pressure- on-oil-iran- plans- new- round- of-military-exercises. html.
The New York Times (Sept. 28 2016)”OPEC Agrees to Cut Production, Sending Oil Prices Soaring” by Krauss and Reed,. https:// www.nytimes.com/ 2016/09/29/ business/energy-environment/opec-agreement-oil-prices.html
The New York Times(October 4, 2019),“Saudi Arabia and Iran Make Quiet Openings to Head Off War.” https://www.nytimes.com/2019/10/04/world/middleeast/saudi-arabia-iran-talks.html.
New York Times (May 8, 2018),“Behind Trump’s Termination of Iran Deal Is a Risky Bet”, By David E. Sanger and David D. Kirkpatrick. https://www.nytimes.com/ 2018/05/08/us/politics/trump-iran-nuclear-deal-news-analysis-.html
The Wall Street Journal (2015)”Saudi Arabia says it’s ready to meet any additional oil demand” Dcember 30. http://www.marketwatch.com/story/saudi-arabia-says-its-ready-to-meet-any-additional-oil-demand-2015-12-30.
Viotti, Paul R. and Mark V. Kauppi (1999) International Relations Theory, 3rd ed., Boston: Allyn and Bacon.
Wall Street Journal (Dec.12, 2019)”Saudi Arabia Seeks to Ease Tensions With Iran” https:// www. wsj. com/articles/ saudi- arabia- seeks- to-ease-tensions-with-iran-11576178194
Waltz, K.N. (2010) Theory of International Politics. Long Grove, Illinois: Waveland Press
Watkins, Simon (2019)” Is Iran Considering An Attack On Saudi Arabia?” https:// oilprice. com/ Energy/ Energy- General/ Why-Iran-Is- Considering-An-Attack-On-Saudi-Arabias-Oil-Industry.html