“Indeed, ample global stocks of crude and higher production elsewhere mean that geopolitical risks from the Middle East are not as great as they once were”, it said in a market commentary.
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Supporters of Shiite cleric Muqtada al-Sadr protest against the execution of Shiite Muslim cleric Nimr al-Nimr in Saudi Arabia during a demonstration in Baghdad on Monday.
Iran’s supreme leader, Ayatollah Ali Khamenei, threatened divine retribution for the killing of the cleric, whose only crime, he said, was criticizing the Saudi goverment.
On Monday, some of Riyadh’s allies joined diplomatic action against Iran.
“The region is already a powder keg”.
It also called on Iran “to protect diplomatic and consular premises against any intrusion or damage”.
“We call for resolution of differences through peaceful means in the larger interest of Muslim unity in these challenging times”, the Pakistan foreign ministry said.
The Saudi-Iran rift was seen as a potential setback to the peace effort in Syria that had been hailed as a breakthrough for bringing Iran and Saudi Arabia at the table, along with Russian Federation, the United States and other powers.
The execution of Sheikh Nimr al-Nimr sparked protests in the region. The Saudis will likely now try to create a bandaid approach for giving hajj visas or they will move to try and re-establish relations with Iran because they need an embassy and consulate to continue their current visa system.
Sudan was the first to follow through, condemning Iran’s “barbaric attacks” after protesters burned the Saudi embassy, and cutting all diplomatic ties.
Yunnan University professor Xiao Xian said that unless a military conflict erupted, the tensions between Iran and Saudi Arabia would not affect China’s imports of oil.
Riyadh has previously accused Iran of interfering in Arab affairs. Relations between the countries have been strained over various issues in recent decades, including Iran’s nuclear program and deaths of Iranians at the Hajj pilgrimage in 1987 and again in 2015. “They have been taking provocative and negative positions. and I don’t think the break in relations is going to dissuade them from such behavior”. The spokesman also said the Iranian diplomats in Saudi Arabia would be returning to their home country with dignity. Over the weekend, Saudi Arabian authorities executed Shiite cleric Nimr Al-Nimr along with 46 other people, prompting Iranian protesters to set fire to the Saudi embassy in Tehran, the capital of Iran.
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The elevated tension between the region’s two powerhouses cast a shadow over regional security, and if left unchecked, it is likely to dampen the momentum of coordination in fighting against terrorism in the region and the whole world at large.
