Gulf Oil Money: The Significant Fade-Away
Gulf money is everywhere, but it won’t last, and nor will the reputations of the nations who hold it.
The Saudi Crown Prince is fully aware of this trend and is scrambling furiously to fix it.
Gulf oil money still has plenty of allure, which means Washington is still (as always) looking for ways to appease both Saudi Arabia and its close ally Israel, a strategy which works in the case of Iran, but not in the case of the Palestinian Territories. Withdrawing from the Iranian nuclear deal was a big nod to both allies. Trump’s Middle East ‘peace plan’, however, was not. It was primarily a huge victory for Iran, but the fact that Netanyahu was forced to temporarily back down from his West Bank annexation plans was Washington’s bone to the Saudis, which it’s really hoping will bankroll some sort of economic stability for the Palestinians.
But plenty of tables are being turned these days. And they’re all turning on the pressure of oil and gas.
One table that has been turned is in the Mediterranean: Israel is now emerging as a major supplier of gas thanks to its massive finds and first production in the Leviathan field. This changes everything. It makes Israel a major power of sorts, because gas (just like oil) buys peace, even with a country such a Jordan, one of the staunchest supporters of the Palestinians, and home to over 2 million Palestinians.…