Despite the coronavirus pandemic Iran has not abandoned its dreams in Lebanon Syria Iraq

While it’s difficult to predict what lasting impact the coronavirus pandemic will have on the Middle East, a region long beset by military, political and economic crises, it’s clear that in multiple countries the outbreak is already heightening uncertainty and exacerbating internal tensions.

In Persian Gulf countries, which heavily rely on energy exports, economic turmoil unfolded as oil prices fell alongside global demand: Saudi Arabia and Russia clashed over the latter’s unwillingness to stabilize prices by reducing output. Perceiving Moscow’s stance as an attack on its market share, Riyadh increased production in order to further boost tank prices and hurt Russia, which survives almost exclusively on energy exports.

It is unclear how Saudi Arabia will itself contend with such low prices, as it needs more than double the current market rate to balance its budget. In recent days it appears that a new deal on oil prices has been reached between the major oil producers.

While it’s difficult to predict what lasting impact the coronavirus pandemic will have on the Middle East, a region long beset by military, political and economic crises, it’s clear that in multiple countries the outbreak is already heightening uncertainty and exacerbating internal tensions.

In Persian Gulf countries, which heavily rely on energy exports, economic turmoil unfolded as oil prices fell alongside global demand: Saudi Arabia and Russia clashed over the latter’s unwillingness to stabilize prices by reducing output. Perceiving Moscow’s stance as an attack on its market share, Riyadh increased production in order to further boost tank prices and hurt Russia, which survives almost exclusively on energy exports.

It is unclear how Saudi Arabia will itself contend with such low prices, as it needs more than double the current market rate to balance its budget. In recent days it appears that a new deal on oil prices has been reached between the major oil producers.

Source » israelhayom

You May Be Interested