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Oil Prices Fall Even With Spat Between Two Big Producers
Saudi Arabia cut ties to Iran after attacks on two of its diplomatic posts in the Islamic Republic following al-Nimr’s execution. UN Secretary-General Ban Ki-moon told the Saudi foreign minister on Monday that Riyadh’s decision to break off diplomatic ties with Iran was extremely troubling.
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On Saturday, Saudi Arabia executed dozens of people including prominent Shiite cleric Sheikh Nimr al-Nimr, which triggered an global outcry and sparked protests in Iran among others.
“The conflict between Iran and Saudi Arabia will definitely have a negative impact” on the peace process, said Samir Nashar, a member of the Syrian opposition-in-exile.
Several airlines, including Iran’s Mahan Air, use aircraft like the Airbus A330 and A320 for pilgrim flights and total to about 150 flights each month between the two countries, aviation sources said.
In Iran, protesters responded by attacking the Saudi Embassy in Tehran and its consulate in Mashhad.
An early battleground was Bahrain, where the Shiite majority staged mass protests in 2011 demanding political reforms from the Sunni monarchy.
Sheikh Nimr, a driving force behind anti-regime protests in Saudi Arabia, had been sentenced to death by a court in 2014, provoking worldwide condemnation.
“It is maybe a sense of security from the marketplace that with this seeming glut of crude oil that you can have tensions in Middle East and they don’t count for as much as they used to three or four years ago”, he said in an interview. However, officials said the administration is loath to insert itself but wants to ensure the viability of the fight against the Islamic State group in Iraq and Syria, nascent attempts to end Syria’s civil war, peace efforts in Yemen and the Iran nuclear deal.
Egypt’s foreign minister has denounced the attacks on Saudi diplomatic missions in Iran as “unacceptable”. Within hours, the United Arab Emirates announced it would downgrade ties to Tehran to the level of the charge d’affaires, while other nations issued statements criticizing Iran.
In addition to Kerry, other senior US diplomats were in close contact with Saudi and Arab officials over the weekend, according to the USA officials, who spoke on condition of anonymity because they were not authorized to speak publicly about the delicate diplomacy. Iran has called on OPEC producers, especially both Saudi Arabia and Iraq, to curb supply to accommodate its new volumes, arguing that its production was artificially curtailed by years of sanctions over its controversial atomic programme.
Saudi authorities arrested him in 2009 after he criticised them and said the Eastern Province should secede if Saudi Shias’ rights were not respected.
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Meanwhile, the United Nations said de Mistura will head to Saudi Arabia and Iran this week to try to ensure the talks go ahead. He said Saudi Arabia will attend the January 25 talks on Syria in Geneva. Investment ties are also minimal, though Saudi food conglomerate Savola has major manufacturing operations in Iran.