Energy News Beat Publishers Note (ENB): This is good news for any peace talks. What does this mean for oil? Well, it is again validation that Iran’s plans to become a Middle Eastern power are working. They have secured cash flow with China, and the United States is no longer relevant. Iran has never stopped enriching uranium even when the Obama/Biden Nuclear Deal was signed. Iran will continue to ship oil outside of OPEC/OPEC + production quotas to fulfill their cash flow requirements. Bottom line – Iran will do what Iran wants to do and will impact the world’s oil supply.
A Saudi foreign ministry official confirmed his country is in talks with Iran to reduce tensions in the Middle East, bringing weeks of private diplomacy between the two regional powerhouses into the open.
Ambassador Rayed Krimly, head of policy planning at the ministry, told Reuters that Riyadh wanted to see “verifiable deeds” before evaluating the talks.
Iraq has been mediating between Iran and Saudi Arabia with a focus on the Yemeni civil war, where the two rivals back opposing sides.
The regional outreach could help ease international concern around Iran’s nuclear program, currently the subject of negotiations in Vienna seeking to revive the 2015 nuclear deal. Former U.S. President Donald Trump’s exit from the deal was followed by attacks on global shipping lanes and Saudi oil installations, many of them blamed on Iran or its regional proxies.
Source: Bloomberg