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The recent Saudi-Iranian clash is unlikely to affect oil markets for now, but the redistribution of political power between Saudi Arabia and Iran, along with the US disengagement from the Middle East might have long-term consequences for the region’s stability and global oil supply trends.
The recent outburst of hostility between Saudi Arabia and Iran only confirmed the true extent of animosities between the two most powerful political and religious players in the Middle East.
The conflict is not new, and in its modern form has lasted ever since the Shia clerics won power in Tehran in the 1979 Iranian revolution. But the context has changed since the days of Khomeini.
The Middle East is a much more fractured place today, and the sectarian division between the Shia and the Sunnis is currently ripping apart Syria, Iraq and Yemen. This is partly a consequence of the US-led intervention in Iraq in 2003 that toppled the secular regime of Saddam Hussein, but also of the Arab Spring, which brought new dynamics to the Middle East.
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The recent outburst of hostility between Saudi Arabia and Iran only confirmed the true extent of animosities between the two most powerful political and religious players in the Middle East.
The conflict is not new, and in its modern form has lasted ever since the Shia clerics won power in Tehran in the 1979 Iranian revolution. But the context has changed since the days of Khomeini.
The Middle East is a much more fractured place today, and the sectarian division between the Shia and the Sunnis is currently ripping apart Syria, Iraq and Yemen. This is partly a consequence of the US-led intervention in Iraq in 2003 that toppled the secular regime of Saddam Hussein, but also of the Arab Spring, which brought new dynamics to the Middle East.
Read more
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