Sunday, 13 March 2022

White House faces oil standoff with #SaudiArabia and #UAE as prices soar | US foreign policy | The Guardian

White House faces oil standoff with Saudi Arabia and UAE as prices soar | US foreign policy | The Guardian

Joe Biden’s hardline stance on Russia has won him widespread plaudits, but with the most serious oil shock in decades now a reality, the US president’s attempt to cushion the blowback continues to meet resistance from the two allies he needs most.

Saudi Arabia’s de facto leader, Mohammed bin Salman, and his counterpart in the United Arab Emirates, Mohammed bin Zayed, are yet to agree to a phone call with the west’s most powerful man – a scenario all but unthinkable during previous administrations.

Biden’s immediate priority is for both countries to help exert maximum economic pressure on Russia by cranking up their oil output. Each capital is a major supplier of oil, with excess capacity, which would soften the effect on US consumers through fuel prices before midterm elections in November that threaten Democratic control of Congress.

With relations between the Middle East oil powers and Washington at their lowest ebb in modern times, though, a reckoning is due that may realign the regional order on terms that favour Riyadh and Abu Dhabi. Both leaders have made it clear that they will settle for nothing less, and are ready to extract their price.

No comments:

Post a Comment