iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
GET UPDATES FROM Daniel Wagner
GET UPDATES FROM Azadeh Pourzand
 

Iran and Saudi Arabia's Wrestling Match

Posted: 08/12/11 10:38 AM ET

The ongoing diplomatic confrontation between Iran and Saudi Arabia resembles a wrestling match between long-time rivals who cannot pin the other down for long enough to actually win. They are equally adept at taking jabs at each other in an effort to establish definitive political dominance in the Middle East; the jostling has now reached a critical point given the fragile regional landscape. Since the end of July the feud has grown in scope to have direct impact beyond the Middle East.

In the last week of July Saudi Arabia agreed to supply an additional 3 million barrels per day of oil to India following Iran's cessation of Indian oil exports, the result of a failure on the part of the Indians to pay Iran for oil shipped since late last year (due to international payment sanctions imposed on Tehran). India used the dispute to demonstrate to Iran that it has the ability to diversify its oil supplies as necessary, which is no doubt an underlying concern for Iran vis-Ă -vis the other countries to whom it sells its oil. Riyadh's action naturally resulted in an escalation of tensions between Tehran and Riyadh, yet, India clearly needed to fill the shortfall. How many oil producing countries have the ability to provide an additional 3 million barrels per day of oil on short notice -- especially given the shortfall from Libya? No other country but Saudi Arabia. Where did the Iranians expect the Indians to go to fill the gap?

Neither Iran nor Saudi Arabia is likely to confront the other militarily, but rather through the use of proxies, and by flexing their political and economic power. Saudi Arabia clearly has more financial power, and the ability to influence the region's countries as a result of its economic might. Iran, on the other hand, is forceful in its use of non-state actors throughout the region, and continues to have the ability to influence Shi'a populations throughout the Gulf, although the degree of its influence has in some respects become more limited than it once was as a result of the introduction of other state and non-state actors in the arena.

To be sure, the Sunni-Shi'a divide is an important component of the two countries' bilateral relationship. The Saudi regime is under ongoing pressure from clerics to support Sunnis in Iran. Similarly, Iran's support of the Shi'a minority in Saudi Arabia has become a growing source of concern for the Saudi government, particularly at this time. But the tussle between Iran and Saudi Arabia is also about how some grand geopolitical issues will ultimately be resolved. Can Saudi Arabia's de facto economic and political pre-eminence in the region continue, given the shifting landscape resulting from the Arab Spring? Can Iran achieve what it believes is its own manifest destiny, and reclaim is regional dominance? If it were able to do so, which countries would lose out, and which would gain? Will either country find itself swept up in its own political upheaval in the months and years to come? What impact will any of this have on U.S. influence in the region?

Saudi Arabia's influence has diminished over the past decade, the result of a combination of the rise of Turkey as a regional power, the relative decline of the power of OPEC, a rise in the economic power of non-OPEC oil producers, and the ability of China to gain a foothold in the region. The fissure that has grown between Saudi Arabia and the U.S. since the Obama Administration came to power is becoming serious. Both countries' have used the other as a natural extension of their own power in the region. The ability to do so in the future cannot be taken for granted, given waning U.S. influence, and the dislocation of the decades-old political paradigm that has been in place in Egypt and Syria. The implications are uncertain, at best.

The Iranian-Saudi wrestling match has yet to reach a crescendo, and may not for some time to come. It may take a dramatic event -- such as the use of Saudi air space by Israel to bomb Iran's nuclear facilities at some point in the future - to reach the boiling point. In the interim, each will continue to seize opportunities to take jabs at the other in the hope of spurring an Iranian or Saudi Spring in the coming months. In neither country does it appear even remotely likely that the current human rights winter will turn to spring any time soon, but only if this were to occur successfully in either country would dramatic political change stand the greatest chance of permanently altering the geopolitical landscape in the Gulf.

Daniel Wagner is CEO of Country Risk Solutions, a political risk consulting firm based in Connecticut (USA), and author of the forthcoming book Managing Country Risk, to be published by CRC Press in the first quarter of 2012. Azadeh Pourzand is a research analyst with CRS based in the Netherlands.

 

Follow Daniel Wagner on Twitter: www.twitter.com/countryriskmgmt

 
 
  • Comments
  • 65
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
02:23 AM on 08/16/2011
Definition of "jabs"

The Saudis torture and kill Bahrainis.
The Iranians protest the killing and torture of the Bahrainis and their places of worship.

Boy, they are really at it.
01:58 PM on 08/13/2011
Saudi Arabis is not trying to "establish dominance" for itself in the Middle East. Preposterous contention.

Iran would prefer good relations with all Middle East countries, except Israel.
02:26 PM on 08/13/2011
Iran is not that Benin with her intentions, and Saudi are no position to "establish dominance" any kind of dominance. In fact, Saudi are scared. Big Bad Iran is there. Iraq that is also an ancient and sophisticated culture with lots of oil now shia, is going to want her place in the Arab world soon, right on Saudi borders. Hezbollah proven and popular and Bahrain far from over. All emboldening the Shia population in their own country. What would happen let's say the Shia decided they want their own country? as a result, Saudi are trying to buy loyalty from their people, buy influence from Jordan and Egypt, rent mercenaries from Pakistan, spend billions in US weapons that they can't even use trying to look strong. It kind of funny actually
01:31 PM on 08/13/2011
I read this thing first I wondered how an article could have so many basic information wrong. Then I looked at the author, one is a zi.onist ne.ocon who used to work for AIG as a risk analyst. Yeah! risk analyst for AIG while they were guaranteeing Goldman Sachs and the like a few years ago (did he get his numbers intentionally wrong there as well?). The other one is someone with an Iranian name to give credibility to the misinformation. This is my view and I am sticking to it!
02:12 PM on 08/13/2011
Thanks for the info - and the laugh
01:14 PM on 08/13/2011
"In the last week of July Saudi Arabia agreed to supply an additional 3 million barrels per day of oil to India"

This is not correct. All of Iran's export to India is 400K barrels per day. 3 million barrels is 30% of Saudi production. They don't have that kind of extra capacity. Saudi's want to export another 200K to 300K barrels of oil to India on the direction of US. Anyways the Indian payment to Iran is being made through Turkey and there was no supply disruption to India from Iran. India always bought more oil from Saudis than Iran, just because they produce a lot more. For India switching of all oil purchase from Iran is not in the cards. The name of the game in energy security is having buying relationships with as many producers as possible, and Indian as usual using this to get a better pricing from both sides.

There seems to be a rivalry between Saudi Arabia and Iran, this is because Saudi Arabia, the largest "a family, an army owning a country" entity in the middle east, don't know where to turn. The end of these make belief entities (regimes) are near. The only thing the Saudi tyranny is doing, is trying to deflect their population from this reality, by blaming everything on Iran in cooperation with US and Israel.
02:00 PM on 08/13/2011
Shomali - - And the US has encouraged China to become largest buyer of Saudi oil. And US pays for "protection" for those oil purchases, at vast expense. When Iran's policy is free shipping to all countries in Persian Gulf, absent war.
This user has chosen to opt out of the Badges program
photo
09:06 AM on 08/13/2011
" Israel to bomb Iran's nuclear facilities"

"If the U.S. or Israel attack Iranian nuclear power facilities "huge amounts of radioactive material will be lofted into the air to contaminate the people of Iran and surrounding countries," an eminent international authority on nuclear weapons warns.

"This fallout will induce cancers, leukemia, and genetic disease in these populations for years to come, both a medical catastrophe and a war crime of immense proportions," Dr. Helen Caldicott writes in her new book, "Nuclear Power Is Not The Answer," published by The New Press.

Dr. Caldicott said the Pentagon has met with its Israeli counterparts "to discuss the participation of Israel in plans to attack Iran" even though President Bush said "this notion that the United States is getting ready to attack Iran is simply ridiculous."

http://www.globalresearch.ca/index.php?context=va&aid=4354
11:15 PM on 08/12/2011
To call Saudi Arabia a country with its own "Foreign Policy" is the most ridiculous thing I have ever heard. At this point, the intelligence of folks like David Wagner and Ms Pourzand is questionable when they attempt to compare a country like Iran that has held over 9 elections during the past 32 years to select its government with Saudi Arabia, a country that has been ruled for decades by one corrupt family with a foreign policy that is 100% formulated in Washington. This is beyond ridiculous.
03:24 AM on 08/13/2011
Elections where the Imams decide who wins isn't much of an election.
photo
HUFFPOST SUPER USER
Richard Pearce banned
Never let them tell you it can't be done.
09:09 AM on 08/13/2011
True. Of course, that isn't what happened in Iran.

First off, promiment Inams (including those elected to positions of power in the government, like the power to tell the 'Supreme Leader' he wasn't anymore) campaigned for Inam Mousavi, but the non-cleric Ahmadinejad won.

Second off, none of the credible polls ever had Ahmadinejad with less popular support than all the other candidates.

Third, when all the candidates had monitors at almost every single polling station (when a candidate tries to organise tens of thousands of people to go to tens of thousands of polling stations, not every one of those monitors is going to show up), watching the entire voting process, including the counting, and the marking of every voter's finger with indelible ink, and over 90% of them all say the process at their polling station was fair, and the vote count for their individual polling station in the official results were accurate, its hard to see how electoral fraud could have been pulled off (other than through the use of Santa Claus to slide down the chimneys at those polling stations and swap out the ballots while no-one was awake)

PS
I hope james is not one of those people who see it as their patriotic duty to ignore facts when it doesn't suit the political stance of his country.
01:16 PM on 08/13/2011
huh? There are actually millions of people who go vote and disagree with you.
photo
fairwayhill
1948 Palestine belongs to the Palestinians
07:14 AM on 08/13/2011
Well said. Neocon war mongers can't stand the fact that Iran is a democracy, and Saudi Arabia is a US supported ruthless dictatorship.
09:17 PM on 08/12/2011
Comparing Saudi Arabia and Iran is wrong!
Iran is anti-american(not the people but their foreign policy)
Saudi Arabia is anti-shia
Iran and Egypt are more similar to each other while Saudi Arabia is in a league of its own
02:03 PM on 08/13/2011
truth - - But Iran has tried a number of times to restore normal relations with US. ISRAEL LOBBY blocked it every time.
This user has chosen to opt out of the Badges program
photo
Baghooli
Immortals!
06:16 PM on 08/12/2011
Comparing Iran and Saudi is like comparing apples and oranges, Saudi government/nation is a less than a century old foreign establish and supported entity with no meaningful freedom to operate outside of western nations dictations, wishing for demise of Iran and others as independent powers will cause destruction of biodiversity of nations also if you will, what's use of having a world with every nation having a same political and economic system as everyone else, true friend is the one who tells you that you are wrong even if it's hurtful and not kissing up to you, that's relation between US and Iran presently!
04:08 PM on 08/12/2011
Your information about Saudi oil production capacity and Indian demand are incorrect. India only buys 400000 barrels of oil per day from Iran and the Saudi are already at the top end of their production. Saudi claim of 3 million barrels per day capacity in access production is beyond ridicules. Anyway, India is paying for its oil to Iran via Turkey and Iran has agreed to resume shipments again.
02:25 PM on 08/12/2011
India paid Iran one billion euros the other day, on the unpaid balance owed for Iranian oil shipped to India. Those Iranian exports continue.

China buys about 550,000 barrels of Iranian oil, per day.

Saudi Arabia and Iran should seek to have good relations with each other.
photo
HUFFPOST SUPER USER
Richard Pearce banned
Never let them tell you it can't be done.
08:36 PM on 08/12/2011
I have a question for you, why should democratic Iran seek to have 'good relations' with dictatorial Saudi Arabia?
10:32 PM on 08/12/2011
Soft power that is the hallmark of the Mullahs. There is a saying; keep your friends close, and your enemy closer. If US was smart, they'd be using the strategy instead of trying to force a round peg into a square hole.
03:31 AM on 08/13/2011
What democratic Iran? Why do you think that hundreds of thousands of people were demonstrating? Because the Imams hand pick who will win elections there. The people are tired of having a govenment that tries to force them to live in the 7th century, and are more than ready to throw off their government's oppression and join the 21st centruy. The only thing holding them back is their government and its religious leadership.
01:28 PM on 08/12/2011
The neocon mentality that seeks to create a conflict should be bringing Arabs and Persians together.
Divide and conquer ends with one or both sides conquered.
Those seeking to divide are the real enemy.

Given the fact that the majority of foreign fighters captured in Iraq were Saudis not Iranians, and that funding for the Taliban is heavily Saudi, an argument could be made that America has chosen the wrong side.
We prop up a radically extremist monarchy that works against Americas interests.
The neocons that created this policy should be investigated for aiding the enemy.

As for the wrestling match theme, it is based on an unsupported assumption that regional dominance is actually sought by both parties.
It is safe to say that appropriate regional influence is desired by both, but that is standard among all nations. Good relations and trade with neighbors being presented as dangerous and expansionary is not supported by the reality on the ground.

The notion of regional dominance seems to be Americas goal.

India allowing itself to be used in this game should be an embarrassment to all Indians.
photo
HUFFPOST SUPER USER
IrishInsurgent
Marx / Fanon / Sartre / Robespierre / Che
12:21 PM on 08/12/2011
While a good article I disagree with some of the themes.

Firstly the Indian-Iran oil disagreement has been resolved with India agreeing to pay the 5 Billion owed through a Turkish bank in Euro currency. I was mainly caused by the US sanctions making it difficult for India to transfer payments. China has had similar problems paying Iran for its gas and has decided on a barter system of repaying them in goods and in investments in Iranian infastructure.

Secondly the phrase "they are equally adept at taking jabs at each other". I would say Iran has been significantly more skillful at countering the Saudis. Just look at the main Saudi-Iran battleground (Iraq). Iran has come out clearly the winner with the Saudi funded Sunni resistance defeated twice (The American insurgency and then the civil war).

As the article correctly implies the Saudi's have one thing going for them and that is almost endless amounts of money. When Saudi's ally Egypt fell to the Revolution they attempted to buy off the Egyptian military council with 4 Billion. When the Shiites rose up in Bahrain they were forced to send in troops to attempt to put it down. Finally Saudi Arabia is forced to spend 24 Billion to by off its own youth with free apartments and more jobs to prevent a revolution in the kingdom.

Saudi Arabia despite all the money it has is acting purely reactively to developments not shaping them.
02:28 PM on 08/12/2011
Irish - - The Saudis knew the Sunni control of Iraq's government was gone for good, after the idiot Jerry Bremer dissolved the Iraqi army and security services in 2003. Sunnis want a reasonably fair share of Iraqi oil revenue. They know Shia will retain control of government of Iraq, even if Iran does nothing but watch events from Tehran.
photo
HUFFPOST SUPER USER
IrishInsurgent
Marx / Fanon / Sartre / Robespierre / Che
02:53 PM on 08/12/2011
Indeed Garvagh, alot of the conflict during the civil war period in Iraq can be boiled down to that power struggle and involved both Saudis funding the Sunni faction and Iran funding the Shia faction in the power struggle.

You would have to wonder what Saudi policy makers were thinking when they supported the US war and then panicked afterwards about a Shia takeover. With a 60% Shia majority what did they expect would happen in Iraq under a democratic system?
11:44 AM on 08/12/2011
It's interesting how supporters of the Iranian pre-mediaeval tyranny find fault with all the governments of the world but their own dictatorial regime which is at war with humanity as well as it's own nation whose youths were either sent on the minefields in thousands or those who were seeking freedom and democracy have been raped, tortured and murdered in tens of thousands. Anyone genuinely interested in human rights and freedom tries to improve the situation in their own country.
HUFFPOST SUPER USER
Hass
12:16 PM on 08/12/2011
Fact: there is no evidence of election fraud and multiple polls by US organizations find that the people in Iran voted for Ahmadinejad. Adjust to reality.

http://www.worldpublicopinion.org/pipa/articles/brmiddleeastnafricara/652.php
photo
HUFFPOST SUPER USER
Richard Pearce banned
Never let them tell you it can't be done.
08:40 PM on 08/12/2011
Hass, don't bother trying to change people's minds with facts.

When it comes to Iran, the vast majority of Americans are Birthers, prefering to think that what matches their prejudices is true no matter what the facts are.
photo
HUFFPOST SUPER USER
IrishInsurgent
Marx / Fanon / Sartre / Robespierre / Che
03:03 PM on 08/12/2011
"regime which is at war with humanity"

In fairness, if Iran is at war with humanity they are going about it in a fairly lazy fashion. You could even argue that America has a far more proactive approach to going to war with humanity than the Iranians do, what with there 1000 military bases around the globe and vast military and there new weapon that can strike anywhere on the globe in under an hour.

But then I did see that photo of Iran launching 3 rockets in a desert drill last year so yeah maybe they are gearing up for a "war with humanity" who knows?
photo
HUFFPOST SUPER USER
Richard Pearce banned
Never let them tell you it can't be done.
11:05 AM on 08/12/2011
Of course, the difference between a Saudi Spring and an Iranian one is that in the first, the people will be seizing power from an absolute dictatorship, and in the second one, it would have to be a military coup against a democratic government.

As for their relative positions when it comes to trade dominance, while they could each make up for the other's crude oil shipments to any single customer, Iran has a lot more than oil that they export, and that gives them more leverage than the House of Saud has if it came down to that. As it is, Iran seems pretty content to play the long game, knowing a modern, democratic, open market industrialised country with a thriving scientific community (hint, the scientific output of Saudi Arabia could be added to the scientific output of Israel and it still wouldn't match Iran's outputs) is pretty much assured to come out ahead of a country where industry depends on foreign technicians and advancements, and businesses only succeed if they have a 'silent partner' amongst the royal family.
01:18 PM on 08/12/2011
democracies don't have supreme leaders who cannot be questioned or replaced by the people
04:23 PM on 08/12/2011
True, and the guardian council needs to be either reformed or disbanded. However, the idea behind it is not without merits. The worse export from west to rest of the world was the concept of Presidency. How many dictators have called themselves presidents? they have a mock election every few years, give themselves 99% of the votes and stay on. So, the original constitution of Iran was supposed to have checks and balances to prevent corruption of presidency. Anyway, Khamenei doesn't get involved in the day to day running of the government, and the position probably will be eliminated or turned over to a committee when he dies.
photo
HUFFPOST SUPER USER
Richard Pearce banned
Never let them tell you it can't be done.
08:45 PM on 08/12/2011
Of course, that the 'Supreme Leader' can be replaced (or questioned) by the directly elected Assembly (basically, to use the American venacular, he serves at the pleasure of the Assembly) will be dismissed by you as irrelevant.

PS, the head of that body campaigned for Mousavi, which begs the question 'If the Iranian election was rigged, who did it and how did they manage to avoid the notice of the Mousavi supporters in positions of power?'
02:58 PM on 08/12/2011
A Democracy does not impose A way of life on its subjects
In Democracy, citizens take turn ruling and being ruled, regardless of whether they can demonstrate that they believe in "Velayate Fagheeh"
In a Democracy, a citizen is not put in jail because of what he has published in a blog
In a Democracy, citizens are not forced to confess against themselves in show trials
In a Democracy, there's a separation between public and private, between state and society. State cannot dictate the morals to its citizens
In a democracy, citizens are not stoned to death because of adultery
In a democracy, citizens cannot be held in custody without access to an attorney
In a democracy, a supreme leader does not employ Besiji mercenaries to suppress unrest
In a democracy, no cultural or Islamic code can replace the universal and natural rights of man.
I could go on forever. These are all necessary conditions
Look forward to your refuting my arguments (without using the ignoble method of saying how far US is far from meeting some other demands. Stick to Iran and demonstrate how it's Democratic)
04:11 PM on 08/12/2011
Last election in Iran, 85 percent of the population participated. That's the largest turn-out in any election in any country in recent history. Majority of the population voted for this system of government whether you like it or not.

The rest of your comments are pure rubbish and nothing less than propaganda.
photo
HUFFPOST SUPER USER
Richard Pearce banned
Never let them tell you it can't be done.
09:16 AM on 08/13/2011
kazio, it is clear that your definition of democracy is 'pro-American'.
HUFFPOST SUPER USER
Hass
10:18 AM on 08/12/2011
Saudi Arabia itself is acting merely a proxy of the US. The Saudis backed Saddam Hussein too, much to their own later regret and Iraqi forces crossed Kuwait and lined up on the borders of Saudi Arabia. That the US continues to rely on the most repressive regimes in the Mideast as well as Israel to support its position in the Mideast just goes to show how fundamentally bankrupt our policy has become.
12:08 PM on 08/12/2011
LOL

Who would you have the US support. The Ayatollahs of Iran who hate us. The dictatorhip in Syria. Hezbollah. not a lot of worthy choices. And too important a region to ignore.
HUFFPOST SUPER USER
Hass
12:15 PM on 08/12/2011
There would be no "ayatullahs in Iran" in the first place had the US not toppled Mossadegh.
07:10 PM on 08/12/2011
Ayatollahs of Iran want WTO membership, normalization of relations, banking and investments. I wouldn't call that hating us.