Saturday, July 24, 2021

How Will Russia-Saudi Alliance with OPEC Nations Impact Iran and Israel?

Through a newly proposed US-Russia-Saudi Arabia Oil Alliance, Russia and Saudi Arabia aim to institutionalise Russia-OPEC Relations. But how will arch-enemies Iran and Israel get impacted by the trilateral US-Russia-Saudi Arabia Alliance?

The OPEC nations meet in Vienna this weekend and this US-Russia-Saudi Arabia oil alliance will surely be on cards. Russia and Saudi Arabia plan to boost oil production at the same time they continue to lose the grip over the market to the US Shale companies. So, if the US, Russia and Saudi Arabia align to form an oil alliance then we could see a tectonic shift in the global oil market.

Both the US and Russia can reap political as well as economical leverages from the US-Russia-Saudi Arabia oil alliance, according to haaretz.com. This way they can keep their market shares while moderating gas prices. It becomes even more beneficial for the US which is on the brink of a trade war with Europe and China. In such a scenario the US-Russia-Saudi Arabia oil alliance gives it a great economical superiority. As for Russia, even Vladimir Putin is keen to restore Russia’s ‘superpower’ status.

What could this Oil Alliance mean for Iran?

If the US-Russia-Saudi Arabia oil alliance comes to being then Iran’s pain will only magnify. Iran will surely oppose any such development at the upcoming OPEC meeting in Vienna. Iran is bound to see sanctions coming from the Trump Administration and hence, it is already losing orders worth huge amounts.

Lowering of prices will only irk Iran further. Iran along with Libya, Iraq and Venezuela will resist the US-Russia-Saudi Arabia oil alliance to not see its interests erode any further. All of these OPEC nations are facing similar problems. Iran and Venezuela will be biggest losers to the US-Russia-Saudi Arabia oil alliance if it is agreed upon.

Implications for Israel

For Israel, any loss inflicted on Iran is a win. Iran would be weakened by the US-Russia-Saudi Arabia oil alliance. Russia which has always described Iran as being a tactical partner has also often stated that Israel is an ally too. The Prime Minister of Israel was the Guest of Honor at the Victory Day Parade in Moscow on May 9. This reflected Russia’s support for Israel. Hence, there is every possibility that the implications of the US-Russia-Saudi Arabia oil alliance will only be positive on Israel.

Other News at EurAsian Times

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