Saudi Arabia’s stock exchange plummeted on Sunday, with the index down some 7 percent in early trading on fears of international sanctions over the disappearance of journalist Jamal Khashoggi.
In comments likely intended to address the domestic investors’ concerns, Saudi officials issued a statement threatening “greater action” against the US and other Western nations for any actions taken related to Khashoggi’s disappearance and presumed murder.
Saudi state media published an opinion piece from one of their managers saying the kingdom is ready to implement measures against the US economy that would result in oil prices skyrocketing. He added that “if Washington imposes sanctions on Riyadh, it will stab its own economy to death.” The same piece also suggested an end to US-Saudi intelligence sharing, and a Saudi-Russian alliance.
The threats are a similar tack to the Saudi threats in 2016 surrounding the US Congress planning to strip them of sovereign immunity over their role in 9/11. In that case, Saudi officials also openly threatened to destroy the value of the US dollar by flooding the debt market.
While historically the combination of economic threats and juicy military contracts have been enough for the Saudis to get their way in almost all things, and that’s clearly the message officials are attempting to send to investors, there is a risk that such overt threats are going to further rile a US Congress that is already furious about the Khashoggi affair, and speed up the path to measures like arms sales restrictions.
According to Iran Press TV KSA is considering reconciliation with Iran if the US imposes real sanctions. See
https://www.presstv.com/Detail/2018/10/14/577020/Saudi-Arabia-Iran-reconciliation-Khashoggi-US-sanctions
But Iran won’t reciprocate. The Saudis have been massacring Shia Muslims directly and indirectly, and Iran will tell the Saudis to fu– off IMO.
Remember couple of years ago during Hajj where they massacred Iranians during the pilgrimage?
Now that the truth is staring at them hard and the proverbial “table” has fewer and fewer options on it, another catastrophic war in the middle east is brewing. The siren song of the short victorious war is singing sweet and loud, I bet.
Who’s going to war (beyond what we have)?
The only way KSA could “skyrocket” oil prices is to cut production, which would stab its own economy to death while boosting Russia and Iran. Bring it on! Meanwhile, on arms sales (not sanctions):
Trump:
“I know they’re talking about different kinds of sanctions, but they’re spending $110 billion on military equipment and on things that create jobs, like jobs and others, for this country. I don’t like the concept of stopping an investment of $110 billion into the United States. Because you know what they’re going to do? They’re going to take that money and spend it in Russia or China, or someplace else.”
CNN:
The deal brokered last year between the US and Saudi Arabia was merely a memorandum of intent to fulfill nearly $110 billion in arms sales over the next 10 years. As of yet, Saudi Arabia has only signed letters of offer and acceptance — official purchase agreements that have either already been approved by Congress or in the process of being approved — for $14.5 billion in purchases, according to a Pentagon official.
news reports
Senators in both parties are gearing up to force a vote on scrapping U.S. arms sales to Saudi Arabia. Sen. Chris Murphy (D-Conn.) said Thursday that he plans to introduce a resolution of disapproval once Congress is notified of the next potential U.S. weapons sale to Saudi Arabia. Murphy and Sen. Rand Paul (R-Ky.), his ally in pushback against the arms sales, fell four votes short of blocking a Saudi weapons deal last year — and Murphy predicted that they would fare better this time around.
I think that the only solution is a blood sacrifice of a prince.
Maybe MBS himself.
SA beheads him as a rogue element and then the long miserable marriage of SA and USA can continue; we protect them, they sell oil in dollars and they recycle petrodollars into weapons
That actually doesn’t sound terribly unlikely. MbS seems to have walked a tightrope so far. He’s probably got much of the regime against him for his “anti-corruption” extortion racket, and his mild “social reforms” — mainly for show to the US, presumably — have been at the expense of the kingdom’s more conservative religious elements. His base of support is presumably with the military. Watch how quickly that same military sadly announces that he was killed in an “accident” if his schemes endanger their access to US arms, training, etc.
What are they gonna do? 9/11 us again?
Well, that’s what they threatened Canada with a couple of months ago in response to some very mild diplomatic statements, remember?
Instead of attacking a country that had nothing to do with 9-11, the US should have bombed the crap out of the instigators and financial backers of the 9-11 killers, the Saudi regime. Gee whiz, not one word of outrage or threats by our Fifth Column, Israel, on the obvious murder of the visitor to the Saudi Embassy. Oh that’s right, they are best buds now.
Looks like a full and impartial investigation by the Saudi regime is out of the question?
It’s really starting to look like this mess has legs to get somewhere, in no small part because of the regime’s exceptional arrogance. They seem to think that the US is the client and they are the patron, and that’s not without some basis. But with the kingdom embarrassing the wrong people so carelessly, US officials may soon be forced to act. That would likely lead to a domino effect of major consequences, most of which would be positive on long-term trends IMO.
LOL Never are there reductions in arms sales-what else does the USA do but threaten others and sell arms so the action occurs away from the Homeland.
What was T E Lawrence thinking when he decided to civilize that god forsaken peninsula?
I welcome the criticism of Saudi Arabia by Congress on this criminal act of MBS.
However, this was a petty crime by the Saudis compared to propping up ISIS or the brutal slaughter of Yemeni innocents.
The press and Western governments should have been all over Saudi Arabia on their crimes against masses as listed above. The Saudis thought that if they can get away with those major crimes against humanity, what’s the big deal about taking care of one more dissident individual?
It would have been far more constructive if we had invaded Saudi Arabia to steal all their oil instead of Iraq following 9-11. Not that I endorse that kind of behavior, but we at least would have been more on target.
As the saying goes “you will have to dance with whom you brung”.