Saudi Arabia

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April 10, 2026

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April 10, 2026

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"The discovery of oil in 1938 launched the transformation of a mostly desert kingdom into a modern country. The country was barely six years old and its founder, King Abdelaziz ibn Saud, was already courted by world powers. In 1945, Franklin D. Roosevelt struck a deal with the Saudi monarch, sitting aboard the USS Quincy on the Great Bitter Lake. The two men agreed that Saudi Arabia would provide America with unimpeded access to exploit the oil, in exchange for military protection and support. The price of a barrel was low for years, the revenues limited, but it was more than enough to build a country from scratch, and by the late 1960s a wave of construction was under way across the kingdom. There was no local expertise, but plenty of money to hire help. Then, in the fall of 1973, the price of oil quadrupled almost overnight from $3 to $12—roughly the equivalent of $50 in 2019. That October, Egypt and Syria had gone to war against Israel, hoping to regain land lost in the Six-Day War of 1967. Oil-producing Arab countries declared an embargo on exports to the United States and other countries that supported Israel in the conflict. Saudi Arabia was reluctant to undermine its alliance with the US but ultimately led the charge and reaped the benefits: Arab hearts filled with pride, briefly grateful to the kingdom for standing up to the West and Israel—a small consolation for past humiliations. Most important, the young country was now awash with cash as billions of dollars flooded the kingdom. Between 1970 and 1974, Saudi Arabia’s oil revenues ballooned from $1.2 billion to $22.5 billion."

- Saudi Arabia

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"In Saudi Arabia, awareness of what the year 1979 had meant for the kingdom was not as obvious. Juhayman’s siege of the Holy Mosque in Mecca that year, though shocking, had not been a countrywide event, and the kingdom excels—then as today—at camouflaging internal dissent. Awash with cash during the 1980s, Saudis could travel anywhere to go to the cinema and the theater or to sit in cafés in Paris if they wanted to escape the darkness engulfing their country. There was no clear turning point to stand against; there were many smaller ones. But now their children want to know why. Why hadn’t their parents protested when the music was silenced, when the male guardianship system was tightened, when the religious police started cracking their whips in public malls? How could they have let this happen without a word? This generation of Saudis do not know that Iranians are asking the same questions about 1979; nor do Iranians know that some in Saudi Arabia are fueled by similar feelings of betrayal. Iran and Saudi Arabia are echoing each other, once more, in subtle ways. There was a brief moment in 2018 when it looked as though the two foes were going to compete to undo the damage of 1979: the Saudis from the top down, thanks to a crown prince opening up his country to the twenty-first century; and the Iranian people, thanks to their own determination to chip away at the system. Instead, the competition continued to be a race to the bottom, as though nothing and nobody was equipped to dissuade the leadership of either country from its own worst instincts. Syria, Yemen, and Iraq paid the price, as did those who raised their voices against their respective leaders in Iran and Saudi Arabia. The most dangerous opponents were those who spoke softly and who presented the most credible alternative to the absolutism of the leaders, such as Jamal Khashoggi. Or Nasrin Sotoudeh, an Iranian human rights lawyer sentenced to thirty-eight years in jail and 148 lashes for defending the women campaigning against the mandatory veil."

- Saudi Arabia

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"After the US came to the rescue of Israel during the Yom Kippur War of October 1973, Saudi Arabia used oil to reset global politics. Angered by Israeli’s successful counterattack and push into Arab territory, Riyadh announced a complete oil embargo against the US. To ensure that Washington felt economic pain even if oil slipped in through the back door, Saudi Arabia – followed by the OPEC cartel which it dominated – cut production ultimately by 25 per cent, and between September 1973 and March 1974 the oil price quadrupled. Sheikh Yamani, the Saudi Arabian oil minister, declared: ‘What we want is a complete withdrawal of Israeli forces from occupied Arab territories and then you will have the oil.’ The Saudis thus launched what became known as the ‘oil weapon’. Henry Kissinger, US secretary of state, referred to these démarches as ‘political blackmail’ and as the ‘most important of our century’. The Saudi oil minister spelled out the geopolitical implications by referring to a ‘new type of relationship’ where ‘you have to adjust yourself to the new circumstances’. The US secretary of state adjusted, Israel retreated back east of the Suez Canal and the embargo was lifted, but global politics would never be the same again. Saudi Arabia, as the swing producer, had demonstrated that it possessed the power to drive up inflation and break economies, regardless of politics in the West. That threat has been Saudi Arabia’s entry pass to the global political stage, and it is still there today, but that entry pass is only valid as long as Riyadh is the swing producer. It was the first time that a group of relatively weak states had provoked such dramatic changes in the lives of the vast majority of people on the planet. The consequence eventually was a world economic crisis, but the raising of the oil price was only one factor. The US had abandoned the gold standard in 1971, and as a consequence the Bretton Woods system collapsed. Thereby the long period of economic growth in the developed world ended. In West Germany driving was banned on Sundays, and the autobahn was given over to pedestrians and cyclists. GDP there fell by 1.5 per cent, and unemployment climbed above one million."

- Saudi Arabia

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