Iran’s Houthi rebels attacked two of Saudi Arabia’s largest oil refineries, setting them ablaze, leaving world oil supplies in doubt when markets open Monday, Sept. 16. Iran’s role in funding-and-arming Yemen’s Houthis in a proxy war against Saudi Arabia has been undeniable, and, until now, has become implacable. When President Donald Trump attends the U.N. General Assembly Sept. 17, there’s more at stake than ever about confronting Iran. Trump backed out of the July 15, 2015 Joint Comprehensive Plan of Action [JCPOA] AKA the “Iranian Nuke Deal” May 8. 2018, precisely because of Iran’s role in the proxy war against Saudi Arabia. Staging missile-and-drone attacks over the last two years, Iran’s Houthi rebels scored a big one, setting ablaze two of Aramco’s largest light crude refining facilities. Trump can no longer talk about more Iranian sanctions, he must do something to stop Iran’s proxy war.
Claiming responsibility for the drone attacks on two Aramco facilities, Al-Masirah’s Houthi Website took responsibility for the predator drone attacks, demanding that Saudi Arabia stop its war in Yemen. Hitting Aramco’s Abqaiq facility about 230 miles for Riyadh and Khurais, about a 100 miles from the Saudi capital, Iran has gotten too close to home. No longer can Iran hide behind the Houthis but take full responsibility for the proxy war against Saudi Arabia. Trump’s European Union [EU] counterparts, especially French President Emmanuel Macron, have made big excuses for Iran, trying to preserve the JCPOA, looking only at Iran’s cheap oil destabilizes the Middle East and North Africa. Trump can’t maintain only “maximum pressure” on Iran was no margin of error necessary to stop the proxy war now threatening global oil supplies, but more importantly, the world economy.
Iran’s Ayatollah Ali Khamenei has essentially said if Iran can’t sell its oil on world markets due to U.S. sanctions, then neither can Saudi Arabia. Hitting Abqaiq and Khurais goes to the heart of refined world oil products. Given the fragile nature of the world economy, it simply can’t take a world oil shock at the hands of Iran, retaliating against Trump’s sanctions. EU officials must recognize now that Iran needs collective action with the U.S. to let Tehran know that they can’t disrupt the supply of distilled petroleum products. Houthi spokesperson Yahya Saree vowed more attacks on Saudi oil facilities unless they give up their war in Yemen. “If the light crude that’s been disrupted cannot be replaced with light crude of similar grade and similar quality immediately, which it probably cannot, there will be some problems in the market,” said Bob Tippee, editor of Oil and Gas trade paper.
However fast Saudi officials can get a handle of the fires at both Aramco plants, doesn’t mean that it won’t disrupt the supply chain, certainly world oil markets. Iran’s proxy war in Yemen has not impacted world oil markets requiring a more forceful response to Tehran. “Tehran is behind nearly 100 attacks on Saudi Arabia while Rouhani and Zarif pretend to engage in diplomacy. Amid all the calls for de-escalation, Iran has now launched an unprecedented attack on the world’s energy supply. There is no evidence the attacks came from Yemen,” said U.S. Secretary of State Mike Pompeo. Pompeo blames Iran directly, not hiding behind its Houthi allies. Attributing the attacks to Iran is a game-changer, requiring collective action by the U.S. and EU. EU officials can no longer seek détente with Iran, while the Mullah regime attempts to disrupt world oil supplies.
Whatever past support Iran gave the Houthi’s, it’s now evident that they’re at war with Saudi Arabia. Saudi Defense Minister Crown Prince Mohammed bin-Salman has some big choices to make, since the proxy war has morphed into Iran brazenly going after the Kingdom Rouhani and Zarif, with Ayatollah Ali Khamenei’s blessings, have told the world they intend to make weapons grade uranium for a bomb. However much Bin Salman was involved in the murder exiled Saudi journalist Jamal Khashoggi, the West must stop making excuses and come together on Iran. Trump’s got U.S. foreign policy right applying “maximum pressure” on Iran to cease-and-desist in their proxy war against Saudi Arabia. Without urgent intervention, Iran intends to protest its sanctions by disrupting world oil supplies. Predator drone attacks on Saudi’s two main light crude refineries is directly attributed to Iran.
Before Trump heads to the U.N. Sept. 17, he needs to coordinate a global strategy for dealing with Iran’s egregious attack on world oil markets. With the U.S. sending more warships to the Persian Gulf to safeguard the free flow of oil, it’s not enough when Iran uses the Houthis in a de facto proxy war against the Kingdom. American banks, like JP Morgan or Morgan Stanley, stand to lose billions if the current proxy war prevents Aramco from going public. Hurting Saudi Arabia’s oil infrastructure damages the global economy, driving commodity prices like oil and gold through the roof. Escalating the proxy war has destabilized more than the Middle East, now that Wall Street stands to lose billions due to Iranian aggression. Attacking Aramco’s largest oil processing facility threatens to spiral global oil prices, threaten oil supplies and drive the world’s economy into recession.
