EconoMonitor » Iran’s Return Prompts Changes to Saudi Arabia Energy Strategy

EconoMonitor : EconoMonitor » Iran’s Return Prompts Changes to Saudi Arabia Energy Strategy:



"As the Iranian nuclear deal begins to take effect and international pressure on the regime continues to diminish, Gulf nations have begun re-establishing diplomatic and economic relations with their once-distant neighbor. The deal has struck an optimistic tone in the Middle East, and officials in the United Arab Emirates are taking the opportunity to settle old disputes and increase energy cooperation with their neighbor across the Gulf.



Iran and the UAE are close to reaching an agreement on three long-disputed islands near the Strait of Hormuz, perhaps the world’s most important oil chokepoint. The strait carried roughly 35 percent of all seaborne traded oil in 2011. According to a high level UAE source, “Iran will retain sea bed rights around the three islands while the UAE will hold sovereignty over the land.” Omani officials mediated the talks."



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