How Saudi Arabia can retaliate against sanctions over Khashoggi
- 6 years ago
RIYADH, SAUDI ARABIA — U.S. President Donald Trump has threatened Saudi Arabia with severe punishment if it's proven that they are behind the disappearance of journalist Jamal Khashoggi.
In response, the Saudis have vowed to carry out retaliatory measures that could potentially spark a "global economic disaster", according to an editorial by Al Arabiya general manager Turki Aldhakhil.
The Guardian reports that Saudi Arabia is the world's largest exporter of oil, shipping over 7 million barrels a day worldwide. If they were to halt sales, oil prices could skyrocket from $80 per barrel to over $400.
This would not only drive up the global cost of petrol, but also any goods that are transported by land, including basic commodities.
As a major importer of U.S. arms, the Kingdom benefits American companies and jobs. But a freeze in U.S.-Saudi relations could jeopardize this and see the Saudis buy from other arms exporters like Russia or China.
Saudi Arabia's Public Investment Fund is also set to invest over $20 billion in U.S. infrastructure — an agreement which could fall through in the event of a diplomatic standoff.
In response, the Saudis have vowed to carry out retaliatory measures that could potentially spark a "global economic disaster", according to an editorial by Al Arabiya general manager Turki Aldhakhil.
The Guardian reports that Saudi Arabia is the world's largest exporter of oil, shipping over 7 million barrels a day worldwide. If they were to halt sales, oil prices could skyrocket from $80 per barrel to over $400.
This would not only drive up the global cost of petrol, but also any goods that are transported by land, including basic commodities.
As a major importer of U.S. arms, the Kingdom benefits American companies and jobs. But a freeze in U.S.-Saudi relations could jeopardize this and see the Saudis buy from other arms exporters like Russia or China.
Saudi Arabia's Public Investment Fund is also set to invest over $20 billion in U.S. infrastructure — an agreement which could fall through in the event of a diplomatic standoff.