Aletho News

Saudi-Iranian reconciliation is within sight

By M K Bhadrakumar | Indian Punchline | December 2, 2016

A side-effect of Donald Trump’s election as president could be the improvement in Saudi-Iranian ties. Of course, cynics may argue that it is about time the relationship got better, because it can’t get any worse – short of war. But the Trump factor becomes a stimulus in a positive direction.

Broadly, the US policy (which Hillary Clinton would have happily continued) of playing Saudi Arabia against Iran on the one hand and nudging the Arab allies and Israel to form a united regional front under American leadership on the other hand, is ending. It was a hopeless strategy to begin with, and Trump will not waste time in resuscitating it on its death bed.

Egypt’s recent ‘defection’ to the Russian-Iranian camp in the Syrian conflict (which also anticipates the Trump presidency, by the way), lethally wounds the myth of Arab unity against Iran, which Saudis had been fostering. Interestingly, Egyptian foreign minister Sameh Shoukry is in New York where he met Vice President–elect Mike Pence on Thursday to hand over a letter from President Abdel Fatah el-Sisi to Trump. At the same time, Sisi himself is on a visit to the UAE (which is mediating in the Saudi-Egyptian rift.) Egypt anticipates an easing of tensions between Saudi Arabia and Iran and is positioning itself.

For the Saudi regime, a Trump presidency means that it is losing the war in Syria. The blow to Saudi prestige on the Arab Street, regionally and internationally is enormous. But Saudis are preparing for the eventuality of President Bashar al-Assad remaining in power and the Syrian rebels facing the existential choice of surrendering and accepting the fait accompli (or meeting physical extinction.) The secret talks in Ankara, which have now come to light, between the rebel leadership with Russian intelligence and diplomats underscore that Aleppo is about to fall to the government forces and the war is over.

The ending of the war on such terms constitutes a big victory for Iran. This raises the question: Are the Saudis on a course correction themselves? There is growing evidence that this may be so.

First came the election of Michel Aoun as the new President of Lebanon on October 31, ending two years of deadlock. Aoun is very close to Hezbollah. (Iranian FM Mohammad Zarif was the first foreign dignitary to visit Beirut to congratulate Aoun.) Clearly, in the complicated political tug of war in Lebanon, Saudis appear to have simply retrenched, which facilitated Aoun’s election, piloted by Iran and the Hezbollah.

The consolidation in Lebanon and the sight of victory in the Syrian war (plus the incipient signs of a warming up with Egypt) would significantly strengthen Iran’s hand in regional politics. But, strangely, there is no triumphalism in Tehran. In the normal course, Tehran could have called the Saudis ‘losers’, but that is not happening.

Now comes the thunderbolt — OPEC oil production cut deal in Geneva on Wednesday. Admittedly, the oil market is unpredictable, the role of the US shale industry is uncertain and the OPEC deal needs to be firmed up at the December meeting in Moscow between the cartel and non-OPEC oil producers. But the bottom line nonetheless is that the deal is the final product of a big Saudi concession to Iran. Put differently, if the Saudis had dug in and refused to exempt Iran as a special case from the production cut, the deal wouldn’t have come through.

The OPEC deal signifies a tectonic shift in the Saudi-Iranian equations, which is below the radar as of now. It is not only about big money, but also the return of Iran to OPEC’s cockpit — indeed, about OPEC’s future itself. True, the Russians played a forceful role behind the scenes to bridge the gap between Riyadh and Tehran and push them to come closer. True, again, Saudis are in serious financial difficulty and the OPEC deal is expected to bring in more income out of a rise in oil price. However, in the final analysis, the Saudis did accommodate Iran’s demand that a restoration of the pre-sanctions OPEC production quota is its national prerogative and it must be exempted from any production cut. (NBC News gives a riveting account of how it all happened — How Putin, Khamenei, and a Saudi Prince Made the OPEC Deal.)

It is this shift in the Saudi mindset — away from the dogged attitude that Iran must be relentlessly punished even if that were to mean inflicting on itself a few bleeding self-wounds — that catches attention. Again, on Iran’s part too, it is this strangest of strange behaviour – total absence of triumphalism that the Saudis blinked in Geneva – is highly significant.

Simply put, taken together with the happenings in Lebanon, Iran is careering away from anti-Saudi grandstanding and rhetoric. Indeed, a similar roll back is discernible on the Saudi side also lately. (The Asharq al-Awsat newspaper recently replaced its editor-in-chief; Prince Turki bin Faisal has said Trump should not abandon the Iran nuclear deal.)

These are early days, but signs are that there is a thaw in the Saudi-Iranian ties. Given the Middle Eastern political culture, Saudi Arabia and Iran could be moving toward a modus vivendi sooner than one would have expected. Yemen will be the litmus test of a rapprochement.

December 2, 2016 - Posted by aletho | Economics | Egypt, Iran, Lebanon, Saudi Arabia, Syria, Yemen