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The likely war between Iran and Saudi Arabia

Giancarlo Elia Valori

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With a view to better understanding what might happen in the future between the Shi’ite Republic of Iran and the   Wahhabi and Sunni stronghold represented by Saudi Arabia, we need to examine a wide range of geoeconomic, political, ideological, strategic and military data and conditions.

Both geopolitical players, namely Iran and Saudi Arabia, may appear irrational to Western observers and decision-makers, but they are used to analyze their strategic equation down to the smallest detail.

Firstly, let us analyze the issue of oil prices and their geopolitical significance.

In principle, the oil price per barrel at around or below 30 US dollars should increase slowly, although Saudi Arabia has oriented and directed the rest of OPEC Sunni countries towards temporary overproduction, so as to further lower prices and damage Iran. And damage Russia, as well – a small simultaneous favor to the American friends which, however, is a very ambiguous token of friendship: at a price below 30 US dollars/barrel, the US shale oil is totally uneconomical and many US shale oil companies (reportedly 40%) are already on the verge of bankruptcy.

But none of OPEC members, let alone the US shale oil industry can go on – for a long period of time – with this pace of plant over-pumping, which reduces the life cycle of wells and leads to huge costs for crude oil storage, in a situation of low economic growth of oil consumers.

The United States have accepted this policy only to damage the Russian Federation, which has an economy still linked to the oil system.

If we look at data and statistics, in recent months Saudi Arabia has reached an extraction record level: 10.24 million barrels/day. And the more the economic crisis worsens, the more Saudi Arabia will be interested in pumping at full blast, so as to have the immediate cash and liquidity it needs.

Even Iraq, Kuwait and, oddly enough, Libya have increased the pace of their daily extractions. Apart from Iraq where oil is in Kurdish areas, they are the new region of Saudi hegemony – the conditioning to oil overproduction to destroy Shi’ite competitors and convince the United States to give up the shale oil extraction.

In geopolitical terms, the Sunni world tries to flood the Western markets with its oil, which will replace the oil of Iran and Shi’ite areas (including Iraq).

In the downward war of the oil barrel, the winner is the one that expels the opponent from the end markets – and this obviously tends to damage more the countries which are most dependent on oil flows.

Nevertheless, with so low oil barrel prices, all OPEC producing countries do not succeed in maintaining internal social peace, their military spending and their hard currency reserves.

With a view to earning an acceptable margin, Nigeria – for example – needs an oil barrel price equal to 122 US dollars. In order to survive, Venezuela – which now has a “Weimar-style” inflation – should price the oil barrel at 117 US dollars, while the Shi’ite Republic of Iran should charge an oil barrel price equal to 130 US dollars in order to cover costs and reach such an average margin of revenues as to allow the market allocation of the new capital in the domestic oil sector. The greater the damage by Sunnis, the greater the Iranian presence in proxy wars against Saudi Arabia and its allies.

Obviously the Western investors will take action in this regard, now that the sanctions against Iran have just been lifted.

Iran, however, will always have a primary oil customer, namely China, while all analysts forecast an increase in Iranian oil extraction this year and next year. If China is and remains the first customer of Shi’ite oil and if, together with Azerbaijan – where oil extraction is less expensive than elsewhere – it is connected with Iran, the damage caused by OPEC to Iran will be limited.

This year the Iranian amount of oil will be 3,133 million barrels but, with a view to taking advantage of the new post-sanction situation, the government plans to reach 550,000 bpd, with a program for increasing its daily production up to 4-7 million bpd within 2020. This means that Iran wants to conquer almost all Saudi Western markets.

Hence a struggle between the two rivals to retain the new markets conquered, by reducing prices, and a struggle to prevail in maintaining the internal balance of power at a time of budgetary constraints. Finally a struggle to prevail in keeping military spending high and, above all, pushing the regional opponent in as many regional proxy wars as possible – wars which exhaust forces, deplete resources and force the players to sell oil at any price just to “make money” and have cash available.

In order to better understand this issue and this situation, Algeria should sell its oil barrel at 130.5 US dollars; Kuwait at 54, Qatar at 60, Saudi Arabia – as we have already seen – at 106 and Russia at 100. Currently no one really earns on oil sales, and everybody is strongly damaged by low prices, including consumers.

Russia is playing its game in Syria also for this reason.

It does not want to cut production because it needs liquidity, but its wells are aging and “getting obsolete” quickly. The extraction of Siberian oil has been decreasing since 2007, while Russia needs capital to play the card of Arctic oil.

Hence the Sunnis need the US production to decline and the oil extracted by Iran and its Shi’ite allies not to reach Western markets at a reasonable cost, in large quantities and competitive with the Sunni oil.

Incidentally, it is precisely the Mesopotamia’s axis, where Syria is present, which is the major corridor of Shi’ite oil and, in many respects, of Russian oil.

Therefore the proxy war between Daesh/Isis and Assad’ Syrian Arab Army, backed by Russian forces, will last until the Saudi oil market stabilizes itself at an acceptable price which, according to the most informed and knowledgeable analysts, should be 80-90 US dollars per barrel.

The problem lies in that fact that – through regional wars – Saudi Arabia wants to avoid the Iranian oil benefitting from the same price increase.

Conversely, Iran wants to “retain” the Alawite Syria to secure the autonomous control of a channel for the transit of oil and gas not touching the Sunni-dominated areas.

The territories currently at war are and will increasingly be used as taps to be turned on or off so as to open or close the transit of their own or other countries’ oil.

Is this, however, the background of a direct confrontation between Sunnis and Shi’ites? Let us analyze the issue carefully.

Now that Iran is coming back onto the global economic scene, Saudi Arabia obviously wants to avoid the Shi’ite expansion into the Greater Middle East.

The 2011 uprising in Bahrain, in which a Shi’ite majority was brutally repressed by the Sunnis in power with the Saudi support, was probably the beginning of the final confrontation between Iran and Saudi Arabia for hegemony over the Middle East region.

The 2014 Shi’ite uprising in the Kingdom was then seen as a practice run for the likely Shi’ite secession in the Saudi universe, where the Al Hasa Shi’ite area was conquered by the Saudi security forces only in 1913, while the Shi’ites around Medina were eliminated later, in 1926.

In the Hejaz region there are still pockets of resistance to the Saudi Wahhabi fundamentalism, while – in the Eastern province of Al Islahiyyah – traditionalist groups, in good relations with the Shi’ites, have long been present and could unite the opposition to the Al Saud’s Kingdom, which has never succeeded in gaining fully hegemony over the Southern part of the Arabian Peninsula. Osama Bin Laden’s hatred for the Royal Family dated back to long time ago and was related to his family’s origin from the Hadhramaut region, at the border with Yemen – a region which has never really submitted to the Al Saud family.

In other words, Iran, but also the Saudi Kingdom, has to manage Shi’ite or Sunni minorities or majorities in a situation in which, throughout the Middle East, States are actually falling apart or, anyway, hardly manage to face the severe threats posed to their survival.

Obviously, in this situation, each of the two major contenders tries to make the other collapse by initially destabilizing the peripheries of both areas of influence and, later, possibly hit the core of the enemy’s power, when the peripheral disintegration process is over.

Nevertheless Saudi Arabia is and will always be a Sunni-majority country, as Iran will always be a nation where the “Party of Ali” is almost completely present.

What about converting the enemy? It is a likely option. In Indonesia the Shi’ite refugees are forced to convert to the Sunni Islam line before having any other economic support, while Iran itself was converted to the “Party of Ali”, namely the Shi’a, only with the Savafid dynasty in 1501 – the same dynasty that rebuilt Iran as an independent State.

Formerly Shi’ism was widespread also in the areas of which the Iranian universe was composed within the Ottoman Empire, such as Dagestan and other Caucasus areas, which are now a stronghold of the Sunni jihad inside the area of Russian influence.

During that Savafid period also Azerbaijan was converted to Shi’ism, as well as most of Iraq, with the Shi’ite reconquest of Baghdad in 1624 which caused the destruction of the Sunni majority of its inhabitants.

Currently the number of fast conversions to Sunnism is remarkable also in Iran itself and it is obvious that the Iranian authorities regard this phenomenon as a deadly danger.

Furthermore the Wahhabi – and hence Sunni – Salafism is used in Iran as a tool for insurgency against the Ayatollahs’ regime.

The expansion of the Hezbollah linked to the Iranian “Revolutionary Guards”, from the Lebanon to Jordan, is a further factor destabilizing the Sunni universe.

In Iran, the Ayatollahs’ statements on the pan-Islamism which must characterize the Iranian policy have decreased for years. On the contrary all Sunnis are increasingly accused of being at the origin of the global jihad which, according to Iranian leaders, is targeted both against the West and against Imam Ali’s followers.

It is a zero-sum game which does not provide for a balance, except for the possible destruction of the areas through which both Sunni and Shi’ite oil transit – and this is the only reason why sometimes the war between the two Mohammedan traditions goes through slack periods.

In other areas, an expansion of conversions to the Shi’ite line is recorded as a tool of political fight against the local authoritarian regimes: in Bahrain, Egypt, Jordan, as well as in Islamic emigration or in the ancient Islamic Mohammedan communities in Canada or in the United States.

Both in the Saudi and Iranian cases, the expansion of conversions to either Islamic line is a direct tool for hegemony.

If this happens in the Middle East, the Shi’ite or Sunni conversions lead directly to the creation of minorities, sooner or later organized for the armed struggle, as currently happens in Yemen or in Syria.

Which is, however, the military potential of either lines of Koran interpretation and tradition?

Saudi Arabia increased its military spending by 14% in 2014, despite budgetary constraints, which is over 10% of its GDP.

If the pace of Saudi Arabia’s rearmament is maintained, and in the absence of new developments on oil markets, the Saudi military spending could lead to a severe economic recession in the Kingdom within 2017.

This is the reason why it is useful for the enemies of the Saudi dynasty to trigger off a small destabilization southward and eastward, as well as preserve the “small wars” in Yemen, in the Syrian Sunni area, as well as in Iraq or in the Pakistani Shi’ite areas in the near future.

In 2015 Iran spent 10 billion US dollars, 60% of which was allocated to the Revolutionary Guards.

Considering the Iranian specific situation and the economic crisis induced by a long regime of sanctions, the growth of military spending will be contained at around 10-15%.

If the tension between Iran and Saudi Arabia turns into an open conflict, this will be the end of the Russian plans of regional hegemony to offset the US withdrawal. This could recreate a strategic relationship between the United States and Saudi Arabia, in view of a new and more difficult Iranian regionalization after the lifting of sanctions.

In this regard, Israel maintains covered and highly confidential – albeit fruitful – relations with both Islamic contenders.

It is worth recalling, however, that neither Islamic country has an interest in giving up the project of “wiping out” the Jewish State and, in a future phase of confrontation, both Islamic countries could create a casus belli for encircling Israel from the North, from Sinai and the PNA Territories, where the Saudi presence is increasingly significant.

Hence we need to rebuild – with the help of the Russian Federation and the United States – a status quo in the Middle East entailing the definition of new and more rational borders, as well as negotiations on regional disarmament and a new Summit – along the lines of the old Madrid Agreements – resuming and following up the policy to make Israel safer, by recognizing a new great power status to Russia and a new NATO’s intervention doctrine in the region.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs "La Centrale Finanziaria Generale Spa", he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group and member of the Ayan-Holding Board. In 1992 he was appointed Officier de la Légion d'Honneur de la République Francaise, with this motivation: "A man who can see across borders to understand the world” and in 2002 he received the title of "Honorable" of the Académie des Sciences de l'Institut de France

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Erdogan’s multiple goals in Khashoggi case

Payman Yazdani

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Disappearance of Saudi journalist Jamal Khashoggi at the Saudi Consulate in Istanbul created a wave of reactions against Saudi young Crown Prince Mohammed bin Salman’s suppressive policies.

Despite early denials, worldwide reactions finally forced the Saudi rulers to acknowledge the death of Saudi journalist Jamal Khashoggi, the critic of Crown Prince Mohammed bin Salman policies in the country’s consulate.

Among all international bodies, countries and political figures nobody reacted to Khashooggi’s death as strong as Turkish President Erdogan did.

Along with the Turkish police investigations the countries officials particularly President Erdogan have been revealing details of the murder gradually. Rejecting the Riyadh’s proposed bribe and despite the Saudi ruler’s acknowledgment, Turkey has called the Riyadh’s explanation incomplete and Turkish President has vowed to uncover the truth behind Saudi journalist Jamal Khashoggi’s killing.

Although Turkish President has called the Saudi journalist as “a friend”, other reasons can be imagined behind President Erdogan’s determination to follow the issue so seriously.

Saudi Arabia and Turkey have been competing for influence in Middle East for years and have had lots of conflicts and tensions over the developments in Egypt which resulted in removal of Turkish backed Morsi from power by Saudi backed al-Sisi, Qatar crisis, Saudi role in 2016 failed coup in Turkey and Saudi destructive role in Syria and Iraq and Riyadh’s financial and political support to separatist Kurdish groups which Turkey considers them as a threat to its national security.

Turkey considers Mohammad bin Salman behind all Riyadh’s regional and anti-Turkey policies. The tensions between the two countries heightened so that Saudi Crown prince referred to Turkey as part of a regional “triangle of evil” along with Iran and Qatar.

Savage killing of Khashoggi at the Saudi consulate provided Erdogan with a golden opportunity to press international community and the US to push Saudi King to remove the young prince from power or at least to contain his destructive policies in the region especially regarding the Kurds in Syria and Iraq.

It also seems that President Erdogan is using the current situation to reduce domestic and international critiques of himself. Rejecting the US demand to release of Pastor Andrew Brunson accused of links to PKK terrorist group and the Gulenist movement by Turkish president resulted in the White House’s sanctions against Turkey which deteriorated the country’s economic situation.

Over the past couple of years, Erdogan has always been accused of limiting journalists’ rights and freedom of speech both domestically and internationally, by supporting the Saudi Journalist he can show himself as defender of journalist’s rights internationally.

First published in our partner MNA

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Middle East Instability to Overshadow Future Global Nuclear Nonproliferation Efforts

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The Middle East fragile situation in which contradicting aspirations of states and non-states’ actors that are involved in shaping the regional balance of power would most likely overshadow the global nuclear nonproliferation efforts in the near future. Factors such as the United States withdrawal from the Iran Nuclear Deal last May, and the polarization of Middle Eastern rivals-allies’ relations in recent years, also encompass lack of trust, weakening on norms and increased uncertainty in the region that ultimately undermines existing multilateral arms control arrangements.

Most of the public debate on the Middle East instability, so far, has been focusing on issues such as the implications of intensified subsequent U.S sanctions, or the reaction of the global markets, as well as ongoing polarization in international relations. While this debate is important, attempts to figure out how to best deal with this situation often ignores the context of the overall global efforts to reduce proliferation of Weapons of Mass Destruction (WMD) and their implication on global security stability. A regional stabilization would be more practical by emphasizing the link between the regional WMD challenges to the Treaty on The Nonproliferation of Nuclear Weapons (NPT) that already encompasses most of these challenges. Developments in Iran’s nuclear actions and the continuing stagnation in the Arab League’s demand to advance negotiation on a Middle East Weapons of Mass Destruction Free-Zone (WMDFZ) are significant issues that have already taken a toll on the NPT and has already eroded the treaty member states obligations to it.

The above argument is also supported by a recent Russian official statement and by a draft resolution that the League of Arab States have submitted on the Middle East WMDFZ to the United Nations General Assembly. On September 28, 2018, the Russian News Agency published a statement by the Russian Director of the Foreign Ministry Department for Non-Proliferation and Arms Control Vladimir Yermakov. According to Mr. Yermakov, the establishment of a WMDFZ in the region is not feasible today, but it is urgent to advance it since current stagnation would “undermine the foundations of the NPT.” The League of Arab States on their part, presented on October 11, 2018, a new draft resolution to the General Assembly, calling for the Secretary-General to take responsibility on convening a conference to establish a WMDFZ in the Middle East no later than June 2019. This draft resolution takes into consideration the limited time frame before the convening of the 2020 NPT review conference and the 2019 Preparatory committee to the conference.

So far, Five out of nine NPT review conferences that were held quinquennially since 1975 have failed to conclude with a final document, which symbolically shows a unified position and the commitment of the state parties to adhere to the treaty. Legally, the authority of review conferences is to clarify and interpret the treaty clauses, and not to amend them, to improve the treaty’s implementation. This conduct makes the review conference political in nature since adopted decisions are based on political consent and are not legally binding. This political nature has often brought different issues of major controversies, such as the nuclear weapons states’ obligations under the NPT to denuclearize or the Middle East WMDFZ, to overshadow other issues on the agenda, such as the emergence of new technologies, or suggestions to increase transparency that could affect the treaty’s implementation.

In order to strengthen the NPT review process and to promote a constructive dialog among the parties, the 1995 NPT Review and Extension Conference have decided to include a Preparatory Committee support mechanism to improve the function and the outcomes of their subsequent review conferences. Nevertheless, the attempts to utilize preparatory committees for this aim by ultimately formulate significant recommendations for discussion at the treaty review conferences have failed to meet expectations, so far. Manifested political gaps between the nuclear member states and the non-nuclear member states that frequently appeared in previous review conferences have reproduced to their preparatory committees. These political gaps have practically obstructed improvements and  mutual understandings between state parties on nuclear issues, which prevented the formulation of a consensus- based final document in the review conference of 2005 and 2015. This in turn, significantly undermine the strength of the NPT and makes preparatory committees merely a preamble for their consecutive review conferences’ dynamics.

The first sign for the possibility to maintain and improve global cooperation on nuclear nonproliferation, in light of the Middle East tensions, would be given at the upcoming NPT review conference that is expected in April 2020. Positive outcomes of this conference would be achieved once a unified position (or at least the widest possible) of the state parties on their commitment to adhere to the NPT would be formulated and agreed upon in the final document of the conference. As the 2000 and 2010 review conferences showed, a unified position that is brought together with an adoption of some practical steps to promote the treaty goals (with an emphasis on the Middle East WMDFZ) could enhance the significance of the NPT to deal with future nuclear weapons challenges.

Despite the relative success in the 2000 and 2010 conferences, failing to fulfill commitments on the agreed practical steps to promote the Middle East WMDFZ have raised frustration in the League of Arab States. Led by Egypt, the League of Arab States have been calling to promote a WMDFZ since 1974 (together with Iran), and with great extent since the ‘Resolution on The Middle East’ was adopted in the 1995 NPT review and extension conference – a resolution that in practice included the issue within the NPT framework. This issue was ultimately one of the main reasons for the failure of the NPT 2015 review conference due to a disagreement between the US and Egypt. The US-Egypt wrangled over the WMDFZ and accused each other on inflexibility, lack of interest and the use of this topic for political purposes. These direct accusations can only reflect on the overall undermining of the NPT in recent years. The same goes with the Iran Deal, where current inability to reach equilibrium that would suitable the interests of Iran and Russia on one side and the US and other moderate Sunni states on the other side (Israel is not member in the NPT) would eventually pervade to the 2020 review conference negotiations and negatively impact the conference’s outcomes.

Nevertheless, achieving a positive outcome in the 2020 review conference depends not only on what would happen during the conduct of the conference, in terms of dynamics and the convened parties’ will to compromise, but also on the states parties’ ability to cooperate and reach at least principle agreements in the current time frame – prior to the conference’s due date. All the more so, any gains achieved regardless of the NPT context are also likely to negatively impact the 2020 NPT review conference. The treaty’s framework is the most relevant to comprehensively deal with the most crucial aspects of WMD nonproliferation in the Middle East while bringing most of the parties involved together to the same table.

The existing alternatives to gain a progress in the Middle East security situation relays on the ground that the NPT provides. Such alternatives are ranged from convening a regional arms control and regional security conference, as the League of Arab states asserts, through a direct cooperation and involvement of the NPT depositories – Britain, Russia, and the US that could provide guarantees to mitigate regional tensions. Failing to provide a pragmatic prospect for regional negotiations prior to the 2020 review conference would not only deepen the current deadlock and increase instability and frustration but would also undermine the relevancy of the NPT when it is most needed to regulate nonproliferation.

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Mohammed bin Salman: For better or for worse?

Dr. James M. Dorsey

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Embattled Saudi Crown Prince Mohammed bin Salman could prove to be not only a cat with nine lives but also one that makes even stranger jumps.

King Salman’s announcement that Prince Mohammed was put in charge of reorganizing Saudi intelligence at the same time that the kingdom for the first time admitted that journalist Jamal Khashoggi had been killed in its Istanbul consulate signalled that the crown prince’s wings were not being clipped, at least not immediately and not publicly.

With little prospect for a palace coup and a frail King Salman unlikely to assume for any lengthy period full control of the levers of power, Prince Mohammed, viewed by many as reckless and impulsive, could emerge from the Khashoggi crisis, that has severely tarnished the kingdom’s image and strained relations with the United States and Western powers, even more defiant rather than chastened by international condemnation of the journalist’s killing.

A pinned tweet by Saud Al-Qahtani, the close associate of Prince Mohammed who this weekend was among several fired senior official reads: “Some brothers blame me for what they view as harshness. But everything has its time, and talk these days requires such language.” That apparently was and could remain Prince Mohammed’s motto.

Said former CIA official, Middle East expert and novelist Graham E. Fuller in a bid to identify the logic of the madness: “As the geopolitics of the world changes—particularly with the emergence of new power centres like China, the return of Russia, the growing independence of Turkey, the resistance of Iran to US domination in the Gulf, the waywardness of Israel, and the greater role of India and many other smaller players—the emergence of a more aggressive and adventuristic Saudi Arabia is not surprising.”

Prince Mohammed’s domestic status and mettle is likely to be put to the test as the crisis unfolds with Turkey leaking further evidence of what happened to Mr. Khashoggi or officially publishing whatever proof it has.

Turkish leaks or officially announced evidence would likely cast further doubt on Saudi Arabia’s assertion that Mr. Khashoggi died in a brawl in the consulate and fuel US Congressional and European parliamentary calls for sanctions, possibly including an arms embargo, against the kingdom.

In a sharp rebuke, US President Donald J. Trump responded to Saudi Arabia’s widely criticized official version of what happened to Mr. Khashoggi by saying that “obviously there’s been deception, and there’s been lies.”.

A prominent Saudi commentator and close associate of Prince Mohammed, Turki Aldakhil, warned in advance of the Saudi admission that the kingdom would respond to Western sanctions by cosying up to Russia and China. No doubt that could happen if Saudi Arabia is forced to seeks alternative to shield itself against possible sanctions.

That, however, does not mean that Prince Mohammed could not be brazen in his effort to engineer a situation in which the Trump administration would have no choice but to fully reengage with the kingdom.

Despite pundits’ suggestion that Mr. Trump’s Saudi Arabia-anchored Middle East strategy that appears focussed on isolating Iran, crippling it economically with harsh sanctions, and potentially forcing a change of regime is in jeopardy because of the damage Prince Mohammed’s international reputation has suffered, Iran could prove to be the crown prince’s window of opportunity.

“The problem is that under MBS, Saudi Arabia has become an unreliable strategic partner whose every move seems to help rather than hinder Iran. Yemen intervention is both a humanitarian disaster and a low cost/high gain opportunity for Iran,” tweeted former US Middle East negotiator Martin Indyk, referring to Prince Mohammed by his initials.

Mr. “Trump needed to make clear he wouldn’t validate or protect him from Congressional reaction unless he took responsibility. It’s too late for that now. Therefore I fear he will neither step up or grow up, the crisis will deepen and Iran will continue to reap the windfall,” Mr. Indyk said in another tweet.

If that was likely an unintended consequence of Prince Mohammed’s overly assertive policy and crude and ill-fated attempts to put his stamp on the Middle East prior to the murder of Mr. Khashoggi, it may since in a twisted manner serve his purpose.

To the degree that Prince Mohammed has had a thought-out grand strategy since his ascendancy in 2015, it was to ensure US support and Washington’s reengagement in what he saw as a common interest: projection of Saudi power at the expense of Iran.

Speaking to The Economist in 2016, Prince Mohammed spelled out his vision of the global balance of power and where he believed Saudi interests lie. “The United States must realise that they are the number one in the world and they have to act like it,” the prince said.

In an indication that he was determined to ensure US re-engagement in the Middle East, Prince Mohammed added: “We did not put enough efforts in order to get our point across. We believe that this will change in the future.”

Beyond the shared US-Saudi goal of clipping Iran’s wings, Prince Mohammed catered to Mr. Trump’s priority of garnering economic advantage for the United States and creating jobs. Mr. Trump’s assertion that he wants to safeguard US$450 billion in deals with Saudi Arabia as he contemplates possible punishment for the killing of Mr. Khashoggi is based on the crown prince’s dangling of opportunity.

“When President Trump became president, we’ve changed our armament strategy again for the next 10 years to put more than 60 percent with the United States of America. That’s why we’ve created the $400 billion in opportunities, armaments and investment opportunities, and other trade opportunities. So this is a good achievement for President Trump, for Saudi Arabia,” Prince Mohammed said days after Mr. Khashoggi disappeared.

The crown prince drove the point home by transferring US$100 million to the US, making good on a long standing promise to support efforts to stabilize Syria, at the very moment that US Secretary of State Mike Pompeo last week landed in Riyadh in a bid to defuse the Khashoggi crisis.

A potential effort by Prince Mohammed to engineer a situation in which stepped-up tensions with Iran supersede the fallout of the Khashoggi crisis, particularly in the US, could be fuelled by changing attitudes and tactics in Iran itself.

The shift is being driven by Iran’s need to evade blacklisting by the Financial Action Task Force (FATF), an international anti-money laundering and terrorism finance watchdog. Meeting the group’s demands for enhanced legislation and implementation is a pre-requisite for ensuring continued European support for circumventing crippling US sanctions.

In recognition of that, Iranian supreme leader Ayatollah Ali Khamenei dropped his objection to adoption of the FATF-conform legislation.

If that were not worrisome enough for Prince Mohammed, potential Iranian efforts to engage if not with the Trump administration with those segments of the US political elite that are opposed to the president could move the crown prince to significantly raise the stakes, try to thwart Iranian efforts, and put the Khashoggi crisis behind him.

Heshmatollah Falahatpisheh, head of parliament’s influential national security and foreign policy commission, signalled the potential shift in Iranian policy by suggesting that “there is a new diplomatic atmosphere for de-escalation with America. There is room for adopting the diplomacy of talk and lobbying by Iran with the current which opposes Trump… The diplomatic channel with America should not be closed because America is not just about Trump.”

Should he opt, to escalate Middle Eastern tensions, Prince Mohammed could aggravate the war in Yemen, viewed by Saudi Arabia and the Trump administration as a proxy war with Iran, or seek to provoke Iran by attempting to stir unrest among its multiple ethnic minorities.

To succeed, Prince Mohammed would have to ensure that Iran takes the bait. So far, Iran has sat back, gloating as the crown prince and the kingdom are increasingly cornered by the Khashoggi crisis, not wanting to jeopardize its potential outreach to Mr. Trump’s opponents as well as Europe.

That could change if Prince Mohammed decides to act on his vow in 2017 that “we won’t wait for the battle to be in Saudi Arabia Instead, we will work so that the battle is for them in Iran, not in Saudi Arabia.”

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