There are strong business ties between the US and Saudi Arabia. Despite their strong relationship, Mohammad Bin Salman and Donald Trump face growing tensions. Both have different opinions related to world issues such as the Gaza war, Palestinian statehood, oil production, etc. All of these matters strain their relationship. The strong bond between Saudi Arabia and the US developed during Trump’s first term. At that time, he visited Saudi Arabia and addressed normalizing the partnership with Israel. However, the current situation highlights that the priorities of both nations have changed.
According to Trump, Iran is a great threat to US stability. Due to this reason, he revived his maximum pressure policy against Iran. He has aimed to prevent Iran from becoming a nuclear power and wants to lessen its influence. At the same time, Mohammed Bin Salman restored diplomatic ties and improved relations with Iran. He also supports Palestinian statehood as tensions between Trump and MBS grow in the future.
The recent modifications in Saudi foreign policy have impacted the Gulf Arab state’s approach to Israel and Iran. After the Israeli airstrike on Iran, the United Arab Emirates and Bahrain refused Israeli warplanes access to their airspace. This compelled Israel to adopt long routes. It highlights the shifting in priorities towards supporting Israel’s military actions.
MBS’s strong support for Iran
During an Arab-Islamic Summit, Mohammed Bin Salam expressed the new direction. He showed strong support for Iran and called on Israel to stop its attacks. This highlights the growing effort of Saudi Arabia to reshape regional alliances.
Further complications have been added to the situation due to the Palestinian issue. Saudi Arabia voted in favor of a two-state solution, but Israel refused to accept it. Israel’s leadership favors the annexation of West Bank territories. Furthermore, Trump’s new policies make the situation worse. He is a great supporter of Israel and has ignored Palestinian demands. These policies make peace efforts more challenging.
Mohammad Bin Salman has changed his stance on the Gaza war. In October 2023, Hamas attacked Israel that killing 1200 Israelis. To take revenge, Israel also attacked Hamas, which took the lives of 1200 Palestinians. Furthermore, this attack destroyed the Palestinian infrastructure and snatched the necessities from innocent people. After this action, Israel’s Crown Prince called it genocide. He insists on a Palestinian state as a condition for Saudi Arabia to establish diplomatic ties with Israel.
Before it, Mohammad Bin Salman was willing to become a normal partner with Israel without caring about the Israel-Palestinian issues. Now he stands in favor of a two-state solution and wants other Arab nations to show favoritism to this solution. Saudi Arabia has arranged a summit in Riyadh and urged different nations, such as the US, to recognize Palestine.
However, the attempt to seize the West Bank by Israel’s right-wing administration might exacerbate tensions and damage MBS’s relationships with other leaders.
The United States and Saudi Arabia are now at odds over oil production. Saudi Arabia produces 4 million fewer barrels of oil per day than the United States, which produces over 13 million. In order to strengthen competition for market share worldwide, former President Trump intends to boost US oil production and exports. Saudi Arabia suffers because it requires oil prices at $96 per barrel to balance its budget, and this keeps them low.
To prevent price declines, Saudi Arabia, its OPEC partners, and Russia have reduced oil output by 2.2 million barrels per day. Notwithstanding these initiatives, US gasoline prices fell by almost $1 per gallon during the same period, and oil prices fell by $18 per barrel since 2022.
Trump has no authority over private US oil corporations, while Saudi Arabia and Russia cooperate through state-owned enterprises. In order to combat inflation, a major political issue, he is in favor of lower oil prices.
Saudi investments in companies connected to Trump further complicate the situation. The Public Investment Fund of Saudi Arabia contributed $2 billion to Jared Kushner’s company in 2022. Despite their oil-related differences, Trump family endeavors, like a five-star hotel in Jeddah and sponsorship of Saudi-sponsored LIV Golf tournaments, further unite the two sides.
