Saudi Arabia and Iran’s conflict is becoming more intense by the day, and every single world leader, including the president of the United States, is keeping a close eye on it because if it escalates any further, it could shatter the entire world economy. If you think this is just another random Middle Eastern conflict, look at this graph, which shows the price of oil from 1970 to 2014. and you can see that whenever there is a conflict in the Middle East, the price of oil rises by an average of 100 percent. This is because the Middle East alone controls 67 percent of the world’s oil supply, and if you overlay this graph with the recession timeline, you will notice that every time this oil spike occurs, it automatically causes a recession, which then causes an economic nightmare.
Therefore, if the Saudi-Iran conflict escalates with the ongoing war, it will be a disaster for both India and the world. let’s try to understand what exactly the issue between Iran and Saudi Arabia is, why has this conflict suddenly become dangerous due to US involvement, and finally, how will this conflict affect the economy of India and the world itself.
To understand this, we must first understand the map and history of the Middle East. As you can see, Saudi Arabia and Iran are two of the largest countries in the Middle East today, even though both are Muslim countries, with Iran being dominated by Shia Muslims. Saudi Arabia is dominated by Sunni Muslims, and this religious difference is cited as the root cause of their conflict. Other Middle Eastern countries have either Shia or Sunni majorities, and as a result, these countries individually either align with Iran or Saudi Arabia in this case, while Egypt does not. UAE and Beren are the same. Iran and Iraq are on the opposing team, and Yemen is among the countries split between Saudi Arabia and Iran. Syria and Labyrinth, and in the middle of it all, we have Israel, which doesn’t give a damn about any of these countries. Now, the question here is that both Saudi Arabia and Iran are oil-rich nations, right? While Saudi Arabia has the second-largest oil reserve in the world, Iran has the fourth-largest oil reserve in the world. However, if you look at the economies of both of these countries, there appears to be a very clear contrast. Iran has only 231 billion dollars, while Saudi Arabia has a cross-national income per capita of 47 700 dollars, while Iran has only 15 thousand seven hundred dollars. despite both of these countries being two of the largest in the Middle East, and despite both these countries have the world’s largest oil reserves
Americans Are To Blame Again
The United States of America is the most powerful nation on Earth, and the big difference between Iran and Saudi Arabia is a result of how they reacted to American intrusion, so let’s start with Iran. in the early 1900s, the Industrial Revolution in the United States and Europe was picking up, and oil was becoming increasingly important, but the problem was that oil had not yet been discovered in the UAE, Dubai, or Qatar.
But you know what happened? Suddenly, a coup was staged, and the Iranian people turned against Mosade, and this Visionary leader was arrested. The reason for this is that the CIA and the British ran anti-muscle propaganda, portraying Muhammad Musadi as a threat to the Shah of Iran, and once enough people believed it, they staged a coup, removing him from power and handing power to an obedient.
Iran Iraq War
lasted nine years, and instead of overthrowing the existing government in Iran, the United States sold weapons and funded Iraq to defeat Iran. It was a critical year. 1982 was the year in which Ronald Reagan removed Iraq from the list of states supporting terrorism, so the United States began providing him with extensive aid, including military aid, missiles, and nuclear weapons, so that from 1983 onwards, Ronald Reagan, the then-president of the United States, offered Aid worth billions of dollars to Iraq, and as usual, people died on both sides and property was damaged on both sides.
Meanwhile, since Saudi Arabia has been a US ally since the discovery of oil in 1938, their treatment has been completely different. In 1943, President Franklin Roosevelt declared Saudi oil to be vital for US security and provided financial support. In 1954, the king of Saudi agreed to sell oil in dollars in exchange for US security, so the US dollar became super powerful and Saudi had the protection of the United States of America and b Iran is said to be developing the mother of all weapons, a nuclear weapon. The United Nations claims that Iran has enough uranium to build a nuclear weapon. One of Ron’s top advisors has claimed that the country is capable of building a nuclear bomb. This is a concerning development out of Iran as an advisor to the ayatollahs says the Islamic Republic is now capable of building a nuclear bomb. This brings me to one of the most important geopolitical projects in history, which is the Iranian nuclear program. I am ordering that we cease purchasing any oil from Iran for delivery to this country. Today, the United Nations Security Council voted unanimously to sanction Iran for its continued failure to meet its obligations. This resolution will impose the harshest sanctions ever imposed on the Iranian government by the United States. Iran’s economy is in freefall as a result of the sanctions. Inflationary pressures have even prompted the government to reduce the value of the currency by four zeros, but you know what guys, even then, the Iranians continued to stockpile nuclear weapons.
Uranium stocks rose from 0 in 2006 to 7000 kg in 2015. In exchange for not increasing its uranium stockpile, the US lifted economic sanctions against Iran. Iran was solely subject to nuclear and not economic sanctions. I’ll add a link in the description if you’re interested. Obama Trump Baba reimposed economic sanctions on Iran and loosened nuclear limits. In a few moments, the U.S. will withdraw from the Iran nuclear deal. I will sign a presidential memorandum to reinstate US nuclear sanctions on the Iranian regime. We will institute the highest level of economic sanctions. Iran’s uranium stockpile began increasing, and then Biden rose to power. Now he’s trying to lift economic sanctions and only impose nuclear sanctions on Iran. This is why ladies and gentlemen. Three concerns plague Saudi Arabia. First, they fear that if Iranian sanctions are repealed, Iranian oil would enter the global market.