Saudi-Iran conflict threatens to flare in Pakistan
Recent Saudi investments in a Pakistani port near the border with Iran are likely to irk Tehran, but Islamabad’s strategic ties to both Tehran and Riyadh make it a prime contender to ease the tensions.
The decades-old rivalry between Saudi Arabia and Iran has re-emerged at a difficult time, with Tehran in economic crisis due to US sanctions. The recent friction started with a tussle over oil pricing. Riyadh offered the world cheaper oil to attract consumers facing any disruption in the Iranian oil supply. The second phase of US sanctions have had a devastating impact on Iran’s oil exports, shipping and banks, hitting the core of the Iranian economy.
Iran’s oil exports have dropped nearly 1 million barrels a day, slashing its main source of revenue. More than 100 big international oil companies, major banks and oil exporters have reportedly pulled operations out of Iran.
