Increased geopolitical tensions in the Middle East, plunging Venezuelan production, and now the USA withdrawal from the Iran nuclear deal could push Brent Crude prices to $82.50 a barrel by summer, Goldman Sachs said Wednesday.
Asked what his country will do if Iran restarts its nuclear program, Adel Al-Jubeir told CNN's Wolf Blitzer that "we will do whatever it takes to protect our people".
Saudi Arabia and its close allies Abu Dhabi and Kuwait hold nearly all the spare capacity that could respond quickly to a reduction in Iranian exports.
Trump's statement on why he was pulling out of the worldwide nuclear agreement with Iran was expressed in terms that made it sound like Trump was determined to go to war, Pierce observed. Of course, the high oil price suits Saudi Arabia ...
The Sunni Saudi Arabia and Shiite Iran have long had tense relations, including backing opposing sides in Middle East conflicts such as those in Syria and Iraq, in what many outside experts consider a de facto proxy war. However, it provides a golden opportunity for the Trump administration to bolster nuclear negotiations with another Middle Eastern State, Saudi Arabia.More news: At Least 2 Reportedly Dead, 6 Injured After Explosions In Kabul
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The Huthis have in recent months intensified missile attacks against Saudi Arabia.
Iran's regional foe Saudi Arabia said it "supports and welcomes" Trump's decision, while Riyadh's Gulf allies the UAE and Bahrain also backed the US.
The outlines of that agreement remain unclear, and may not be entirely clear to Washington and Riyadh, but the understanding is vital to the successful implementation of sanctions.
"We believe the deal does not deal with Iran's ballistic missile program nor does it deal with Iran's support for terrorism".
"Iran is subject to the world's most robust nuclear verification regime" and that the 2015 Joint Comprehensive Plan of Action (JCPOA) was "a significant verification gain", Yukiya Amano, director-general of the International Atomic Energy Agency (IAEA) reiterated in a statement.
The International Energy Agency said Wednesday that it was "ready to act" to alleviate any supply shortfall in the wake of the United States move. "Saudi will work closely with major OPEC, non-OPEC producers and with key consumers to mitigate the effects of any supply shortages". But in order not to lag too far behind Iran's capabilities, they would likely tie their pledge to Iran's enrichment activities. The two countries are negotiating a nuclear-cooperation agreement but a sticking point has involved whether the Saudis will agree to forego dual-use technologies that can be used to produce either nuclear energy or nuclear weapons.