Tag Archives: Saudi Arabia

Saudis seek buffer zone with Yemen in return for ceasefire, sources say

By Aziz El Yaakoubi

DUBAI (Reuters) – Saudi Arabia has told Yemen’s Houthis in high-level back channel talks it would sign a UN proposal for a nationwide ceasefire if the Iran-aligned group agrees to a buffer zone along the kingdom’s borders, three sources familiar with the matter said.

If a deal is struck, it would mark the biggest breakthrough in efforts to reach a political settlement since the conflict – widely seen as a proxy war between arch-enemies Saudi Arabia and Iran – began in 2014.

U.S. President-elect Joe Biden pledged in his election campaign to halt arms sales to Saudi Arabia, the Middle East’s biggest buyer of American weapons, to pressure Riyadh to end the war that has caused the world’s worst humanitarian crisis.

But the Houthis, who control northern Yemen and its biggest populated areas, may be less willing to cooperate with Saudi Arabia if President Donald Trump carries out threats to designate them as a foreign terrorist organization (FTO) before leaving office, the sources said.

Washington and Riyadh see the Yemeni group as an extension of Iranian influence in the region.

A spokesman for the Saudi-led coalition and the Houthis’ spokesman did not respond to requests for comment.

Recently the two parties, holding virtual discussions, raised the level of representation in the talks, with Mohammed Abdulsalam, the Houthis’ chief negotiator, and a more senior Saudi official, two of the sources said.

Riyadh has demanded more security assurances from the Houthis, including a buffer zone along the borders with northern Yemen until a U.N.-backed transitional government is formed, the sources said.

Riyadh wants Houthi forces to leave a corridor along the Saudi borders to prevent incursions and artillery fire.

In exchange, the kingdom would ease an air and sea blockade as part of the U.N. proposal for a ceasefire, which already includes an end to cross-border attacks.

Last year, Riyadh launched indirect talks with the Houthis, as it seeks a way out of the conflict that has drawn criticism from Biden, killed tens of thousands of people and tarnished the reputation of Saudi Crown Prince Mohammed bin Salman.

The talks have stalled over the last two months, the sources said, as fighting escalated in the gas-rich region of Marib, where the Houthis have launched an offensive to drive out Saudi-backed forces.

Marib is the last stronghold of the internationally-recognized government of Abd-Rabbu Mansour Hadi, which was ousted from power in the capital, Sanaa, by the Houthis in late 2014.

That prompted the Saudi-led coalition, which also includes the United Arab Emirates, to intervene.

Complicating matters, the fighting fragmented, spawning a multi-layered war that has lasted nearly six years.

‘CONSULTATIONS ON IRAN’

Trump’s administration, to support the Saudis, has exerted pressure on the Houthis by threatening to designate the group as a terrorist organization, said two of the three sources, who declined to be named because they were not authorized to speak to the media.

Any decision by Washington to blacklist the Houthis, part of its “maximum pressure” campaign against Tehran, would be “devastating” after years of peace efforts led by U.N. Special Envoy Martin Griffiths and other Western ambassadors, they added.

One of the sources said that experts in the U.S. administration have advised Trump against an FTO designation.

The State Department did not respond to a Reuters request for comment.

The discreet talks between the kingdom and the Houthis have dragged on for more than a year, in parallel with Griffiths’ efforts to reach an agreement on a ceasefire.

The U.N. is working to secure a face-to-face meeting before the end of the year, as well as an agreement on a joint declaration that would halt all air, ground and naval hostilities, two of the sources said.

Europe would be a logical venue for them to meet, one of the sources said, as the U.N. seeks neutral grounds for the talks. Griffith’s office declined to comment.

(Reporting by Aziz El Yaakoubi; Additional reporting by Jonathan Landay; Editing by Mike Collett-White)

Israeli minister says normalization deals need U.S. president tough on Iran

By Dan Williams

JERUSALEM (Reuters) – Saudi Arabia and Qatar are among countries slated to establish relations with Israel under a regional rapprochement launched by U.S. President Donald Trump, an Israeli official said on Monday.

Straying from Israel’s reticence about Tuesday’s U.S. election, Intelligence Minister Eli Cohen said implementing further normalization deals could depend on the next president displaying continued “resolve” against Iran.

Democratic presidential hopeful Joe Biden wants to rejoin the 2015 Iranian nuclear deal that the Republican incumbent quit, to the satisfaction of Israel and some Gulf Arabs.

Trump, who has played up his Middle East policy while campaigning, was asked last week which countries might follow the United Arab Emirates, Bahrain and Sudan in normalizing ties with Israel. “We have five definites,” he responded.

Cohen said Saudi Arabia, Oman, Qatar, Morocco and Niger were “on the agenda”.

“These are the five countries,” he told Ynet TV. “And if the Trump policy continues, we will be able to reach additional agreements.”

While not explicitly favoring either U.S. candidate, Cohen argued that Trump’s policy had prompted Arab and Muslim countries to seek accommodation with Israel.

If the next president “does not show resolve vis-a-vis Iran, then what will happen is that they will take their time, will not rush, will not choose a side,” Cohen said. “A concessionary policy will gets the peace deals stuck.”

Saudi Arabia, the Gulf powerhouse and Islam’s birthplace, quietly acquiesced to the UAE and Bahrain deals with Israel, signed on Sept. 15. But Riyadh has stopped short of endorsing them, and signaled it is not ready to follow suit.

The Saudis were the architects of a 2002 Israeli-Arab peace proposal that called for Israeli withdrawal from occupied land to make way for a Palestinian state.

Qatar, which has links to Iran and Hamas, has ruled out normalization before Palestinians achieve statehood.

(Writing by Dan Williams; Editing by Giles Elgood)

Kuwait bids farewell to late ruler and pillar of Arab diplomacy as new emir takes over

By Ahmed Hagagy

KUWAIT (Reuters) – Kuwait on Wednesday laid to rest late ruler Sheikh Sabah al-Ahmad al-Sabah, a Gulf Arab elder statesman who helped steer his nation through some of the region’s most turbulent decades, in funeral rites closed to the public due to COVID-19 concerns.

The only leader of fellow Gulf Arab states in attendance was the emir of Qatar, which has been boycotted by Saudi Arabia and its allies, including the United Arab Emirates, in a dispute that Sheikh Sabah, 91, tried until his death to resolve.

His successor and brother, Emir Sheikh Nawaf al-Ahmad al-Sabah, 83, headed the rites after being sworn in at parliament, pledging to work for the OPEC member state’s prosperity, stability and security.

“Our dear nation today faces difficult situations and dangerous challenges that can only be overcome … by unifying ranks and working hard together,” he told the National Assembly.

Sheikh Nawaf takes the reins of the small wealthy nation, which holds the world’s seventh-largest oil reserves, at a time when low crude prices and the coronavirus have strained the finances of a country with a cradle-to-grave welfare system.

His succession is not expected to change oil or investment policy and he is seen maintaining a foreign policy that saw Kuwait balance ties with larger neighbors Saudi Arabia, Iraq and Iran.

Dignitaries from around the world paid respects to Sheikh Sabah, a seasoned diplomat and savvy politician widely respected as a humanitarian who strove to heal rifts in the Middle East, mending ties with former occupier Iraq and championing the Palestinian cause.

“He will be long remembered by all who work for regional stability, understanding between nations and between faiths, and for the humanitarian cause,” Britain’s Queen Elizabeth said in a statement tweeted by Buckingham Palace.

“DIFFICULT TIMES”

Sheikh Sabah, who died on Tuesday in the United States were he was hospitalized since July, had ruled the U.S.-allied country since 2006, and steered its foreign policy for over 50 years.

Sheikh Nawaf was at the airport when the plane brought the body back home, wrapped in a white shroud and the Kuwaiti flag.

Sheikh Sabah was buried in Sulaibikhat cemetery alongside his kin, after prayers at Bilal bin Rabah mosque where mourners, including Qatari Emir Sheikh Tamim bin Hamad al-Thani, all wore face masks.

The UAE said it was represented by its deputy premier, who is also interior minister, and the minister of tolerance and coexistence, both members of Abu Dhabi’s ruling family.

When Kuwait’s previous emir, Sheikh Jaber al-Ahmad al-Sabah, died in 2006, thousands of Kuwaitis attended the funeral and many, along with expatriates, lined the streets.

“I am sure all the men would have loved to go … and we as women would have loved to somehow pay tribute to our emir,” Khadija, a Kuwaiti fitness instructor, told Reuters.

“I wish we could have young leadership and new visions … I want to see change in our economy, education, and implementation of many promises that didn’t take place,” she said, adding that other Gulf states saw change under a new generation of leaders.

Sheikh Nawaf, who lacks the diplomatic skills of his predecessor, is likely to focus on domestic matters such as naming a crown prince who would manage ties with a parliament that has often clashed with the government and hindered economic reform efforts, diplomats and analysts say.

Under the constitution, the emir chooses the crown prince but traditionally the ruling family, some of whose senior members have been jostling for the position, convenes a meeting to build consensus. Parliament also has to approve the choice.

“I don’t expect big change under Sheikh Nawaf. We have big problems and some may be resolved but I’m not very optimistic,” said Mohammed Abu Ghanem, a 45-year-old Kuwaiti.

(Reporting by Ahmed Hagagy, Dahlia Nehme, Lisa Barrington, Aziz El Yaakoubi and Nafisa Eltahir; Writing by Ghaida Ghantous; Editing by Nick Macfie, William Maclean)

After UAE and Bahrain deals, is Saudi Arabia softening its stance on Israel?

By Marwa Rashad and Aziz El Yaakoubi

RIYADH/DUBAI (Reuters) – When one of Saudi Arabia’s leading clerics called this month for Muslims to avoid “passionate emotions and fiery enthusiasm” towards Jews, it was a marked change in tone for someone who has shed tears preaching about Palestine in the past.

The sermon by Abdulrahman al-Sudais, imam of the Grand Mosque in Mecca, broadcast on Saudi state television on Sept. 5, came three weeks after the United Arab Emirates agreed a historic deal to normalize relations with Israel and days before the Gulf state of Bahrain, a close Saudi ally, followed suit.

Sudais, who in past sermons prayed for Palestinians to have victory over the “invader and aggressor” Jews, spoke about how the Prophet Mohammad was good to his Jewish neighbor and argued the best way to persuade Jews to convert to Islam was to “treat them well”.

While Saudi Arabia is not expected to follow the example of its Gulf allies any time soon, Sudais’ remarks could be a clue to how the kingdom approaches the sensitive subject of warming to Israel – a once inconceivable prospect. Appointed by the king, he is one of the country’s most influential figures, reflecting the views of its conservative religious establishment as well as the Royal Court.

The dramatic agreements with the UAE and Bahrain were a coup for Israel and U.S. President Donald Trump.  But the big diplomatic prize for an Israel deal would be Saudi Arabia, whose king is the Custodian of Islam’s holiest sites, and rules the world’s largest oil exporter.

Marc Owen Jones, an academic from the Institute of Arab and Islamic Studies at the University of Exeter, said the UAE and Bahrain’s normalization has allowed Saudi Arabia to test public opinion, but a formal deal with Israel would be a “large task” for the kingdom.

“Giving the Saudis a ‘nudge’ via an influential imam is obviously one step in trying to test the public reaction and to encourage the notion of normalization,” Jones added.

In Washington, a State Department official said the United States was encouraged by warming ties between Israel and Gulf Arab countries, viewed this trend as a positive development and “we are engaging to build on it.”

There was no immediate response to a request by Reuters for comment from the Saudi government’s media office.

Sudais’ plea to shun intense feelings is a far cry from his past when he wept dozens of times while praying for Jerusalem’s Al-Aqsa mosque – Islam’s third-holiest site.

The Sept. 5 sermon drew a mixed reaction, with some Saudis defending him as simply communicating the teachings of Islam. Others on Twitter, mostly Saudis abroad and apparently critical of the government, called it “the normalization sermon”.

Ali al-Suliman, one of several Saudis interviewed at one of Riyadh’s malls by Reuters TV, said in reaction to the Bahrain deal that normalization with Israel by other Gulf states or in the wider Middle East was hard to get used to, as “Israel is an occupying nation and drove Palestinians out of their homes”.

MUTUAL FEAR OF IRAN

Saudi Crown Prince Mohammed bin Salman, the kingdom’s de-facto ruler often referred to as MbS, has promised to promote interfaith dialogue as part of his domestic reform. The young prince previously stated that Israelis are entitled to live peacefully on their own land on condition of a peace agreement that assures stability for all sides.

Saudi Arabia and Israel’s mutual fear of Iran may be a key driver for the development of ties.

There have been other signs that Saudi Arabia, one of the most influential countries in the Middle East, is preparing its people to eventually warm to Israel.

A period drama, “Umm Haroun” that aired during Ramadan in April on Saudi-controlled MBC television, a time when viewership typically spikes, centered around the trials of a Jewish midwife.

The fictional series was about a multi-religious community in an unspecified Gulf Arab state in the 1930’s to 1950’s. The show drew criticism from the Palestinian Hamas group, saying it portrayed Jews in a sympathetic light.

At the time, MBC said that the show was the top-rated Gulf drama in Saudi Arabia in Ramadan. The show’s writers, both Bahraini, told Reuters it had no political message.

But experts and diplomats said it was another indication of shifting public discourse on Israel.

Earlier this year, Mohammed al-Aissa, a former Saudi minister and the general secretary of the Muslim World League, visited Auschwitz. In June, he took part in a conference organised by the American Jewish Committee, where he called for a world without “Islamophobia and anti-Semitism”.

“Certainly, MbS is intent on moderating state-sanctioned messages shared by the clerical establishment and part of that will likely work towards justifying any future deal with Israel, which would have seemed unthinkable before,” said Neil Quilliam, associate fellow with Chatham House.

ISOLATED PALESTINIANS

Normalization between the UAE, Bahrain and Israel, which will be signed at the White House on Tuesday, has further isolated the Palestinians.

Saudi Arabia, the birthplace of Islam, has not directly addressed Israel’s deals with the UAE and Bahrain, but said it remains committed to peace on the basis of the long-standing Arab Peace Initiative.

How, or whether, the kingdom would seek to exchange normalization for a deal on those terms remains unclear.

That initiative offers normalized ties in return for a statehood deal with the Palestinians and full Israeli withdrawal from territories captured in the 1967 Middle East war.

However, in another eye-catching gesture of goodwill, the kingdom has allowed Israel-UAE flights to use its airspace. Trump’s son-in-law and senior adviser, Jared Kushner, who has a close relationship with MbS, praised the move last week.

A diplomat in the Gulf said that for Saudi Arabia, the issue is more related to what he called its religious position as the leader of the Muslim world, and that a formal deal with Israel would take time and is unlikely to happen while King Salman is still in power.

“Any normalization by Saudi will open doors for Iran, Qatar and Turkey to call for internationalizing the two holy mosques,” he said, referring to periodic calls by critics of Riyadh to have Mecca and Medina placed under international supervision.

(Additional reporting by Davide Barbuscia, Alexander Cornwell in Dubai and Humeyra Pamuk in Washington; editing by Maha El Dahan, Michael Georgy and William Maclean)

Pompeo says Trump administration eager for end to Gulf rift

WASHINGTON (Reuters) – U.S. Secretary of State Mike Pompeo pressed on Monday for a solution to the three-year rift between the Gulf state of Qatar and Saudi Arabia, the United Arab Emirates, Bahrain and Egypt, saying the Trump administration was eager to see it resolved.

Speaking at a State Department meeting with Qatari Deputy Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman Al-Thani, Pompeo said it was important to concentrate on countering Iranian activity in the Middle East.

“To keep our focus on this work and to close the door to increased Iranian meddling, it’s past time to find a solution to the Gulf rift,” Pompeo said.

“The Trump administration is eager to see this dispute resolved and to reopen Qatar’s air and land borders currently blocked by other Gulf states. I look forward to progress on this issue.”

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and trade links with Qatar in June 2017, accusing it of backing terrorism. Qatar denies the charge and has accused its neighbors of seeking to curtail its sovereignty.

Kuwait and the United States have tried to mediate the rift, which has undermined Washington’s efforts to confront Iran, which is struggling for regional supremacy with Saudi Arabia.

The boycotting nations have set 13 demands for lifting the boycott, including closing Al Jazeera television, shuttering a Turkish military base, reducing ties with Iran and cutting links to the Muslim Brotherhood.

The State Department’s top diplomat for the Middle East, David Schenker, said last week there could be some progress within weeks in resolving the rift, citing signs of “flexibility” in negotiations.

With Trump’s facing re-election on Nov. 3, he is eager to show foreign policy successes in the Middle East, and last month the UAE agreed to normalize ties with Israel under a U.S.-brokered deal scheduled to be signed at a White House ceremony on Tuesday. Bahrain joined the UAE in agreeing to normalize relations with Israel on Friday.

(Reporting by David Brunnstrom and Daphne Psaledakis; Editing by Tom Brown)

Bahrain to normalize ties with Israel, Israeli media say

JERUSALEM/DUBAI (Reuters) – The Gulf state of Bahrain is to normalize relations with Israel, the diplomatic correspondent for Israel’s public broadcaster Kan said on Friday, without citing sources.

Another Israeli reporter, Raphael Ahren of the Times of Israel, said U.S. President Donald Trump would on Friday announce that Bahrain was joining its neighbor the United Arab Emirates in formally establishing ties with Israel.

The White House had no immediate comment. Trump will on Tuesday host a White House ceremony solemnizing the Israel-UAE deal, which was announced on Aug. 13.

The Kan reporter, Amichai Stein, said in a tweet that Bahrain Crown Prince Salman bin Hamad Al Khalifa would be in Washington on Monday.

Neither Bahrain’s government communications center nor Bahrain’s embassy in Washington immediately responded to a request for comment.

Last week Bahrain said it would allow flights between Israel and the UAE to use its airspace. This followed a Saudi decision to allow an Israeli commercial airliner to fly over it on the way to the UAE.

Bahrain, a small island state, is a close ally of Saudi Arabia and the site of the U.S. Navy’s regional headquarters. Riyadh in 2011 sent troops to Bahrain to help quell an uprising and, alongside Kuwait and the UAE, in 2018 offered Bahrain a $10 billion economic bailout.

The Trump administration has tried to coax other Sunni Arab countries concerned about Iran to engage with Israel. The most powerful of those, Saudi Arabia, has signaled it is not ready.

Such a move would make Bahrain the fourth Arab country to reach such an agreement with Israel since exchanging embassies with Egypt and Jordan decades ago.

(Writing by Dan Williams; Additional reporting by Alex Cornwell and Lisa Barrington; Editing by Kevin Liffey and Angus MacSwan)

Trump to host Israel-United Arab Emirates deal-signing ceremony on Sept 15

By Steve Holland

WASHINGTON (Reuters) – U.S. President Donald Trump will hold a Sept. 15 signing ceremony for a groundbreaking Middle East agreement normalizing relations between Israel and the United Arab Emirates, a senior White House official said on Tuesday.

As part of the deal, announced at the White House on Aug. 13 following what officials said were 18 months of talks, the Gulf state agreed to normal relations with Israel, while Israel agreed to continue with plans to suspend its annexation of the West Bank.

The senior White House official, speaking on condition of anonymity, said Israeli Prime Minister Benjamin Netanyahu and UAE Foreign Minister Sheikh Abdullah bin Zayed al-Nahyan would lead the two delegations to the ceremony.

“I am proud to embark next week to Washington, at the invitation of President Trump, to take part in the this historic ceremony at the White House for the foundation of the peace treaty between Israel and the United (Arab) Emirates,” Netanyahu wrote on Twitter.

Trump and other administration officials have said they expect Saudi Arabia and other countries to follow suit in recognizing Israel.

Trump senior adviser Jared Kushner and other top administration officials accompanied an Israeli delegation last week on the first flight from Israel to the United Arab Emirates to celebrate the agreement.

Iran has dismissed the agreement, which also served to firm up opposition to Tehran, a regional power seen by the UAE, Israel and the United States as the main threat in the Middle East.

The deal falls short of any grand Middle East peace plan to resolve decades of conflict between Israel and the Palestinians despite Trump’s pledge to do so.

The White House hope is that more such deals between Israel and the Gulf states will emerge, prompting the Palestinians to join negotiations.

Trump proposed a peace plan in January that heavily favored the Israelis, but it has not advanced in any significant way.

The Palestinian leadership initially called the accord “betrayal” and a “stab in the back of the Palestinian cause,” but has curbed its criticism, according to a draft resolution ahead of an Arab League meeting in Cairo on Wednesday.

The draft, seen by Reuters, does not include a call to condemn, or act against, the Emirates over the U.S.-brokered deal.

The United Arab Emirates is planning to make its first official visit to Israel on Sept. 22, a source familiar with the provisional itinerary said on Monday.

(Reporting by Steve Holland, additional reporting by Dan Williams in Jerusalem; Editing by Franklin Paul and Howard Goller)

Special Report: Trump told Saudi: Cut oil supply or lose U.S. military support – source

By Timothy Gardner, Steve Holland, Dmitry Zhdannikov and Rania El Gamal

WASHINGTON/LONDON/DUBAI (Reuters) – As the United States pressed Saudi Arabia to end its oil price war with Russia, President Donald Trump gave Saudi leaders an ultimatum.

In an April 2 phone call, Trump told Saudi Crown Prince Mohammed bin Salman that unless the Organization of the Petroleum Exporting Countries (OPEC) started cutting oil production, he would be powerless to stop lawmakers from passing legislation to withdraw U.S. troops from the kingdom, four sources familiar with the matter told Reuters.

The threat to upend a 75-year strategic alliance, which has not been previously reported, was central to the U.S. pressure campaign that led to a landmark global deal to slash oil supply as demand collapsed in the coronavirus pandemic – scoring a diplomatic victory for the White House.

Trump delivered the message to the crown prince 10 days before the announcement of production cuts. The kingdom’s de facto leader was so taken aback by the threat that he ordered his aides out of the room so he could continue the discussion in private, according to a U.S. source who was briefed on the discussion by senior administration officials.

The effort illustrated Trump’s strong desire to protect the U.S. oil industry from a historic price meltdown as governments shut down economies worldwide to fight the virus. It also reflected a telling reversal of Trump’s longstanding criticism of the oil cartel, which he has blasted for raising energy costs for Americans with supply cuts that usually lead to higher gasoline prices. Now, Trump was asking OPEC to slash output.

A senior U.S. official told Reuters that the administration notified Saudi leaders that, without production cuts, “there would be no way to stop the U.S. Congress from imposing restrictions that could lead to a withdrawal of U.S. forces.” The official summed up the argument, made through various diplomatic channels, as telling Saudi leaders: “We are defending your industry while you’re destroying ours.”

Reuters asked Trump about the talks in an interview Wednesday evening at the White House, at which the president addressed a range of topics involving the pandemic. Asked if he told the crown prince that the U.S. might pull forces out of Saudi Arabia, Trump said, “I didn’t have to tell him.”

“I thought he and President Putin, Vladimir Putin, were very reasonable,” Trump said. “They knew they had a problem, and then this happened.”

Asked what he told the Crown Prince Mohammed, Trump said: “They were having a hard time making a deal. And I met telephonically with him, and we were able to reach a deal” for production cuts, Trump said.

Saudi Arabia’s government media office did not respond to a request for comment. A Saudi official who asked not to be named stressed that the agreement represented the will of all countries in the so-called OPEC+ group of oil-producing nations, which includes OPEC plus a coalition led by Russia.

“Saudi Arabia, the United States and Russia have played an important role in the OPEC+ oil cut agreement, but without the cooperation of the 23 countries who took part in the agreement, it would not have happened,” said the Saudi official, who declined to comment on the discussions between U.S. and Saudi leaders.

The week before Trump’s phone call with Crown Prince Mohammed, U.S. Republican Senators Kevin Cramer and Dan Sullivan had introduced legislation to remove all U.S. troops, Patriot missiles and anti-missile defense systems from the kingdom unless Saudi Arabia cut oil output. Support for the measure was gaining momentum amid Congressional anger over the ill-timed Saudi-Russia oil price war. The kingdom had opened up the taps in April, unleashing a flood of crude into the global supply after Russia refused to deepen production cuts in line with an earlier OPEC supply pact.

On April 12, under pressure from Trump, the world’s biggest oil-producing nations outside the United States agreed to the largest production cut ever negotiated. OPEC, Russia and other allied producers slashed production by 9.7 million barrels per day (bpd), or about 10% of global output. Half that volume came from cuts of 2.5 million bpd each by Saudi Arabia and Russia, whose budgets depend on high oil-and-gas revenues.

Despite the agreement to cut a tenth of global production, oil prices continued to fall to historic lows. U.S. oil futures dropped below $0 last week as sellers paid buyers to avoid taking delivery of oil they had no place to store. Brent futures, the global oil benchmark, fell towards $15 per barrel – a level not seen since the 1999 oil price crash – from as high as $70 at the start of the year.

The deal for supply cuts could eventually boost prices, however, as governments worldwide start to open their economies and fuel demand rises with increased travel. Whatever the impact, the negotiations mark an extraordinary display of U.S. influence over global oil output.

Cramer, the Republican senator from North Dakota, told Reuters he spoke to Trump about the legislation to withdraw U.S. military protection from Saudi Arabia on March 30, three days before the president called Crown Prince Mohammed.

Asked whether Trump told Saudi Arabia it could lose U.S. military support, U.S. Energy Secretary Dan Brouillette told Reuters the president reserved the right to use every tool to protect U.S. producers, including “our support for their defense needs.”

The strategic partnership dates back to 1945, when President Franklin D. Roosevelt met with Saudi King Abdul Aziz Ibn Saud on the USS Quincy, a Navy cruiser. They reached a deal: U.S. military protection in exchange for access to Saudi oil reserves. Today, the United States has about three thousand troops in the country, and the U.S. Navy’s Fifth Fleet protects oil exports from the region.

Saudi Arabia relies on the United States for weapons and protection against regional rivals such as Iran. The kingdom’s vulnerabilities, however, were exposed late last year in an attack by 18 drones and three missiles on key Saudi oil facilities. Washington blamed Iran; Tehran denied it.

THIRTEEN ANGRY SENATORS

Trump initially welcomed lower oil prices, saying cheap gasoline prices were akin to a tax cut for drivers.

That changed after Saudi Arabia announced in mid-March it would pump a record 12.3 million bpd – unleashing the price war with Russia. The explosion of supply came as governments worldwide issued stay-home orders – crushing fuel demand – and made clear that U.S. oil companies would be hit hard in the crude price collapse. Senators from U.S. oil states were infuriated.

On March 16, Cramer was among 13 Republican senators who sent a letter to Crown Prince Mohammed reminding him of Saudi Arabia’s strategic reliance on Washington. The group also urged Commerce Secretary Wilbur Ross to investigate whether Saudi Arabia and Russia were breaking international trade laws by flooding the U.S. market with oil.

On March 18, the senators – a group that included Sullivan of Alaska and Ted Cruz of Texas – held a rare call with Princess Reema bint Bandar bin Sultan, the Saudi ambassador to the United States. Cramer called the conversations “brutal” as each senator detailed the damage to their states’ oil industries.

“She heard it from every senator; there was nobody that held back,” Cramer told Reuters.

The Saudi embassy did not respond to requests for comment.

Cramer said the princess relayed their comments to officials in Saudi Arabia, including the energy minister. The senators told the princess that the kingdom faced rising opposition in the Senate to the Saudi-led coalition that is waging a war in Yemen against Houthi rebels.

Saudi and U.S. officials have said the Houthis are armed by Iran, which Tehran denies. The backing of Senate Republicans over Yemen had proved crucial for Saudi Arabia last year. The Senate upheld Trump vetoes of several measures seeking to end U.S. weapons sales and other military support to Saudi Arabia amid outrage over the Yemen conflict, which has caused more than 100,000 deaths and triggered a humanitarian crisis.

Cramer said he made a phone call to Trump on March 30, about a week after he and Sullivan introduced their bill to pull U.S. troops from Saudi Arabia. The president called Cramer back the same day with Energy Secretary Brouillette, senior economic adviser Larry Kudlow and U.S. Trade Representative Robert Lighthizer on the call, the senator said.

“I said the one person that you don’t have on the call that can be very helpful is Mark Esper,” the defense secretary, Cramer recounted, saying he wanted Esper to address how U.S. military assets in Saudi Arabia might be moved elsewhere in the region to protect U.S. troops.

The Pentagon did not respond to a request for comment on whether Esper was involved in discussions of pulling military assets out of Saudi Arabia.

BENDING THE KNEE

Trump’s oil diplomacy came in a whirlwind of calls with Saudi King Salman, Crown Prince Mohammed and Russian President Vladimir Putin starting in mid-March. The Kremlin confirmed Putin’s conversation with Trump and said they discussed both oil supply cuts and the coronavirus pandemic.

On the April 2 call with Prince Mohammed, Trump told the Saudi ruler he was going to “cut them off” the next time Congress pushed a proposal to end Washington’s defense of the kingdom, according to the source with knowledge of the call. Trump also publicly threatened in early April to impose tariffs on oil imports from Saudi Arabia and Russia.

After the conversation with the Saudi crown prince, and another the same day with Putin, Trump tweeted that he expected Saudi Arabia and Russia to cut output by about 10 million barrels, which “will be GREAT for the oil & gas industry!”

Riyadh and Moscow later confirmed they had restarted negotiations.

On April 3, Trump hosted a meeting at the White House with senators Cramer, Cruz, and Sullivan, and oil executives from companies including Exxon Mobil Corp, Chevron Corp, Occidental Petroleum Corp and Continental Resources.

During the public portion of the meeting, Cramer told Trump that Washington can use the billions of dollars it spends defending Saudi Arabia on other military priorities “if our friends are going to treat us this way.”

The prospect of losing U.S. military protection made the royal family “bend at the knees” and bow to Trump’s demands, a Middle Eastern diplomat told Reuters.

After prolonged and fractious negotiations, top producers pledged their record output cut of 9.7 million bpd in May and June, with the understanding that economic forces would lead to about 10 million bpd in further cuts in production from other countries, including the United States and Canada.

Trump hailed the deal and cast himself as its broker. “Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 Million Barrels a day…” he tweeted shortly after the deal.

Riyadh also took credit. Saudi energy minister Prince Abdulaziz told Reuters at the time that the crown prince had been “instrumental in formulating this deal.”

(Reporting by Timothy Gardner and Steve Holland in Washington, Dmitry Zhdannikov in London and Rania El Gamal in Dubai; additional reporting by Alexandra Alper and Humeyra Pamuk in Washington, and Marwa Rashad in Riyadh; writing by Michael Georgy; editing by Richard Valdmanis and Brian Thevenot)

Saudi Arabia floods markets with $25 oil as Russia fight escalates

By Olga Yagova

MOSCOW (Reuters) – Saudi Arabia is flooding markets with oil at prices as low as $25 per barrel, specifically targeting big refiners of Russian oil in Europe and Asia, in an escalation of its fight with Moscow for market share, five trading sources said on Friday.

The sources, from oil majors and refiners which process crude in Europe, said Saudi state oil company Aramco told them it would supply all requested additional volumes in April.

Sources previously told Reuters Saudi Arabia is also seeking to replace Russian oil with Chinese and Indian buyers, although not all refiners received volumes they had asked for.

Tanker rates soared as Saudi Arabia provisionally chartered around 31 supertankers to take extra oil, including to the United States, where Russian oil is usually less in demand.

Oil prices have halved since the start of the year because demand has been hit by the coronavirus outbreak and after Russia and OPEC failed to reach a new deal on supply cuts.

Moscow refused to support new deeper cuts, saying the impact from the virus could be much worse than thought, and Riyadh retaliated by opening its taps and pledging to pump record volumes on to the market.

Russia has so far said it is not planning to come back to the negotiating table despite feeling the pressure from the extraordinary Saudi moves.

Energy Minister Alexander Novak said on Friday Russia saw no grounds so far for returning to discussions with its OPEC+ partners and can increase its oil production by a modest 200,000 barrels per day in April.

By contrast, Saudi Arabia has pledged to raise output by 2.6 million bpd in April, including from stocks. Fellow Gulf producers like the United Arab Emirates has had to join in the battle for market share and has also announced production increases.

Saudi Arabia has made a deep cut to its official selling prices for oil. Arab Light and Arab Medium barrels were offered at selling price of $25-28 per barrel on CIF Rotterdam basis, traders said.

On Friday, Abu Dhabi National Oil Company (ADNOC) also offered steep discounts for its Murban crude for April, announcing forward prices for the first time in its history. It previously set prices retroactively.

Russia’s main blend Urals has been offered slightly higher than $30 per barrel on CIF Rotterdam basis, according to Refinitiv Eikon data.

“We are happy with our allocation. The requests for April were confirmed. I look forward to May if prices remain that attractive”, a trader with a European oil company involved in the talks told Reuters.

European oil refiners including Total, BP, Eni and SOCAR have all had allocations for additional Saudi crude oil supplies in April confirmed, the sources said.

Saudi Aramco declined to comment. Total, BP, Eni and SOCAR did not immediately respond to Reuters requests for comment.

On Thursday, sources told Reuters Saudi Arabia started focusing on boosting supplies to traditional buyers of Urals as it is trying to replace Russian oil in refiners’ feedstock around the world, from Europe to India.

Brent crude prices were on track for their biggest weekly fall since the 2008 financial crisis on Friday as investors fretted over the impact of the virus on demand and the Russian-Saudi price war. [O/R]

(Reporting by Olga Yagova; Additional reporting by Jonathan Saul, Rania El Gamal in Dubai and Devika Krishna Kumar in New York; Editing by Dmitry Zhdannikov/Jan Harvey/David Evans/Jane Merriman)

Saudi princes’ detentions sent a message: don’t block my path to the throne

DUBAI (Reuters) – Saudi Arabia’s crown prince meant to send a strong message to critics within the royal family by detaining senior princes this weekend: Don’t you dare oppose my succession to the throne.

The main target in the crackdown, sources said, is King Salman’s brother, Prince Ahmed bin Abdulaziz, one of only three members of the Allegiance Council, the royal body that endorses the line of succession, to oppose Mohammed bin Salman becoming crown prince in 2017 in a palace coup.

Four sources with royal connections said the move aimed to ensure compliance within the ruling Al Saud family, in which there have been rumblings of discontent, ahead of an eventual succession upon the king’s death or abdication.

One of the sources described the detentions as a preemptive effort to ensure Prince Mohammed’s “ascent will be rubber stamped by the Allegiance Council when the time comes”.

FILE PHOTO: Saudi Crown Prince Mohammed Bin Nayef, the interior minister, arrives at the 34rd session of the Council of Arab Interior Ministers in Tunis,Tunisia April 5, 2017. REUTERS/Zoubeir Souissi

Ahmed, 78, was detained on Friday along with Mohammed bin Nayef, who was crown prince until he was ousted in 2017 and replaced by Mohammed bin Salman. Ahmed’s son Nayef and Mohammed’s brother Nawaf were also detained, said two other sources with royal connections.

The princes have been held at royal villas in the capital Riyadh and some were allowed to contact their families, those sources said.

Crown Prince Mohammed, who has moved ruthlessly to tighten his grip on power, feared disaffected princes might rally around Ahmed and Mohammed bin Nayef as potential alternatives to take the throne, said two of the sources with royal connections, and a senior foreign diplomat.

“This is a preparation for transferring power,” said one of those sources. “It is a clear message to the family that no one can say ‘No’ or dare challenge him.”

Saudi authorities have not confirmed or commented on the detentions, which have not been covered by Saudi media. The media ministry has not responded to detailed requests for comment.

If Mohammed bin Salman, 34, succeeds his father, it will be Saudi Arabia’s first generational transfer of power since the death of state founder Abdulaziz Ibn Saud in 1953, who was followed by six of his sons in succession.

The Allegiance Council, made up of one member from each house of 34 sons of Abdulaziz, is designed to ensure that the hundreds of princes that make up the royal family’s next generation unite behind the new king.

The senior foreign diplomat said the detentions were another blow to the country’s image abroad just as it appeared to be recovering from the furor over the 2018 killing of journalist Jamal Khashoggi and criticism of the Yemen war.

Crown Prince Mohammed previously detained senior royals and prominent Saudi businessmen in 2017 at Riyadh’s Ritz-Carlton hotel, unnerving investors at home and abroad. More recently, it seemed those days of unpredictability had been put to rest as Riyadh assumed this year’s presidency of the Group of 20 major economies.

ROYAL DISCONTENT

When sources initially described the latest detentions in recent days, several of them said the detained princes had been accused of plotting a coup to thwart Mohammed’s accession. However, some of those sources, and others who later spoke about the detentions, have since offered milder justifications, describing the arrests as a response to an accumulation of misbehavior rather than a plot against the crown prince.

Two sources used the same phrase, saying the princes were being warned with a “twist of the ear” to stop criticizing the crown prince.

While hosting traditional gatherings known as majlis, Prince Ahmed had raised questions about the crown prince’s stance on several issues, including a U.S. plan for the Israeli-Palestinian conflict, one of the sources said.

There was no way to contact Ahmed or the other princes to comment on the allegations. Sources said he returned from a trip abroad the night before he was detained.

Ahmed on Saturday asked his family to deliver his bisht, a traditional coat worn at formal occasions, suggesting he might soon make a public appearance, said two sources including one with royal connections.

Saudi insiders and Western diplomats say the family is unlikely to oppose the crown prince while the king is alive, and the monarch would not turn against his favorite son, to whom he has delegated most responsibilities of rule.

The recent detentions sparked speculation about the health of 84-year-old King Salman, but sources have said he remains mentally and physically sound. State TV on Sunday aired a clip of him accepting oaths of office from two new Saudi ambassadors.

Mohammed bin Nayef’s brother Saud and Saud’s son, Interior Minister Prince Abdulaziz, who were both rumored to have been among those detained, also appeared conducting official business in photographs published by state media on Sunday.

Royals seeking to change the line of succession have viewed Prince Ahmed as a possible choice who would have support of family members, the security forces and some Western powers, sources have said.

The other two members of the Allegiance Council who opposed Mohammed bin Salman becoming crown prince in 2017 are younger and less prominent than Ahmed. One of them lives abroad.

“Disgruntlement was gathering around him (Prince Ahmed) and he was letting it happen,” said the fourth source with royal connections.

Critics have questioned the crown prince’s ability to lead after the 2018 murder of Khashoggi by Saudi agents and an attack last year on a Saudi oil facility, the sources said.

Some royals became disaffected after Prince Mohammed reigned in traditional largesse for many family members, heavily restricted their movements and replaced their security details with guards who report to him.

Mohammed bin Nayef’s movements have been heavily controlled and monitored since 2017.

Ahmed has kept a low profile since returning to Riyadh in October 2018 after 2-1/2 months abroad, when he appeared to criticize the Saudi leadership while responding to protesters outside a London residence chanting for the Al Saud’s downfall. Saudi watchers say there is no evidence he wants the throne.

The second source with royal connections said the crown prince may have wanted to clear his path before the U.S. presidential election, fearing that a loss by Donald Trump could affect his standing.

The foreign diplomat said he may have moved against his uncle and cousin out of an abundance of caution, fearing that “the Americans might one day turn to them”.

(Editing by Peter Graff)