Leveraging a crash in oil revenue, the Saudi government has quickly imposed unprecedented changes to the way it raises cash by increasing taxes and slashing subsidies in ways Saudi citizens once considered unthinkable.
Despite the Trump administration sentiment that the U.S. partner with Saudi Arabia in a joint oil alliance, such an approach is unlikely to be successful, write energy fellows Jim Krane and Mark Finley. Forbes blog: https://bit.ly/2WUa6rb
"With the U.S. and Iran staggering toward war, it bears asking: How would U.S. interests be served by war with Iran?" writes fellow Jim Krane. Read his argument for why U.S. interests would be deeply undermined by any such war on the Baker Institute Blog.
This post originally appeared in the Forbes Blog on June 17, 2019.
Saudi Arabia recently ended its legal ban on women driving. The long-term consequences of this change on transportation, energy, labor, and health remain unclear, write fellows Farhan Majid and Jim Krane in an op-ed for the Houston Chronicle: https://bit.ly/2Lrqnja
With the implementation of the Iran nuclear agreement, many Gulf Cooperative Council states now openly wonder whether U.S. support can still be relied upon, given the speed with which the U.S. government has engaged Iran in negotiation and diplomacy since 2013. This incomprehension may lead to further instability in the Middle East as the Gulf States continue to take increasingly unilateral action in Yemen and other regional conflict zones, fellow for the Middle East Kristian Coates Ulrichsen writes.
Though drops in oil prices stand to impact Saudi Arabia’s economic stability, the government has turned to drawing down its foreign reserves and issuing bonds to alleviate budgetary pressures and avoid drastic domestic spending cuts. Fellow for the Middle East Kristian Coates Ulrichsen writes in the Baker Institute Blog: http://bit.ly/1fKLWG9.
The range of responses in the six Gulf states to the Iran nuclear deal illustrates both the diversity of regional approaches to Iran and the absence of any monolithic “Gulf position” on the issue.