February 28, 2021
By The Ister for the Saker Blog
They say that great myths die hard, but as it fades into obscurity will anyone really miss the Saudi state?
Because the Kingdom’s cosmopolitan elite longed to be like the West, they imported European sports cars and erected enormous skyrises using slave labor. Riyadh and Jeddah transformed into shopping centers and hubs of oligarchic largesse while the oil-rich sheiks appeased the conservative populace by sanctioning Wahhabist doctrine, public beatings and beheadings, and other backwards symbolic gestures.
Saudi Arabia is essentially based on this great contradiction: posturing itself as the hardline leader of the Islamic world while aligning with America and carrying out a foreign policy that has killed countless Muslims, a contradiction that exists because it is an artificial construct of imperialism.
In the early 1900s, British spies in the Middle East sought to partition off Ottoman claims in the Arab Peninsula with the help of Arab rebels such as Emir Faisal. These spies who included Edmund Allenby and the famous T E Lawrence led the Arab Revolt of 1916 and successfully revoked Ottoman control of the region.
A little-known fact is that Israel and Saudi Arabia share this same point of origin. In December of 1918 after the success of the Arab Revolt, Lord Walter Rothschild held a banquet for Emir Faisal culminating in the signing of the Faisal-Weizmann agreement, used to demonstrate Arab support for the Balfour Declaration: the document that laid the foundation for the state of Israel. The rebels who had been promised a unified Arab state stretching from Aden to Aleppo had been lied to however, as the leaked Sykes Picot agreement revealed a plot by imperial powers to divide and conquer the Middle East along sectarian lines.
Today the pan-Arab doctrine of the government of Bashar al-Assad is the ideological progenitor of those early rebels who fought to unite the Arab world against the wishes of imperialists. The stoking of the Syrian Civil War was just an extension of century-old divide and conquer tactics, as the West sought to enrage Sunnis against the secular Syrian Arab government for the betterment of Saudi Arabia, Turkey, Qatar, and Israel. Recall too that neo-Ottoman Turkey is aware of the imperial history and sees Syria as Ottoman territory lost to the West.
If the Syrian revolution ever had a grassroots base it was in the impoverished Sunni Idlib governorate, where Turkey and Saudi Arabia had for decades financed Salafist mosques and imams with the intention of eventually breaking this region off from Syria. Although the remaining terrorists in Idlib have yet to be defeated, Saudi Arabia’s failure to achieve full regime change in the Syrian Civil War marks its waning power: previously both Muammar Gaddafi and Saddam Hussein spoke out in favor of pan-Arabism and denounced the Saudis at the cost of their lives. Unlike the ideological and religious bonds that tie America and Israel, America’s commitment to Saudi Arabia was always strategically contingent and several developments suggest that it is declining.
America has abandoned support for the war in Yemen
The war against the Houthi movement in Yemen has been fought with a threefold strategy: sanctions to starve the Yemeni population, targeted assassinations to kill Shia imams and others tied to the Houthis, and traditional military force by Saudi conscripts. The Kingdom’s force has performed poorly and relied heavily on support from America. In one case in 2019, the Saudis were planning an attack in the disputed town of Najran in retaliation for missile strikes on Riyadh oil facilities. They were baited into a trap and over 2,500 were captured by Houthi forces. In blind retaliation, they struck a Houthi prison in Yemen and killed over 290 of their own prisoners.
It is no surprise in such conditions that morale is low among the Kingdom’s soldiers and that Iran has supported the Houthi side with weapons and intelligence.
Why has America abandoned its ally in the conflict? Simply, we don’t need Saudi oil as much anymore. Shale gas technology completely changed the nature of the global oil and gas industry and broke the Saudi monopoly. Recall my article The Empire is Losing the Energy War. Since then, more confirmation of this thesis has come around as prices have risen – beneficial to Russia, and oil experts have broadly agreed that Russia has won the most recent price war with the Saudis. America’s withdrawal in Yemen is an acknowledgement of their diminishing role and a reason which under Trump’s “Middle East Peace Plan” Saudi Arabia panickedly sought to tie its future not to oil production but to the creation of a joint security bloc against Iran.
Pipeline developments: NordStream 2 and Goreh Jask
By mid-2020, two major new pipelines are expected to be built. The first is the NordStream 2, which will cement Russia’s control of European energy markets. Washington is moving in slow motion to try and stop this pipeline but it is basically already done. Only 100 miles of pipe remain and the Biden admin’s early smackdown of the American energy industry with the Keystone XL cancellation means that there will not be enough American gas to provide an alternative to Russia. The German public retains a dislike for Russia but the industrialists have pushed ahead regardless.
NordStream 2 serves two other geopolitical purposes. First, Ukraine will be deprived of $1-2 billion of energy transit revenue, a big deal for a country with a $150 billion GDP. This also lowers NATO’s interest in Ukraine, which will suddenly have less of an ability to bottleneck Russian energy shipments to Europe. Second, the pipeline also reduces Russia’s exposure to Turkey as an energy transit and will allow Russia to be more “gloves off” in northern Syria without risking economic retaliation.
Iran’s Goreh Jask pipeline is expected to be completed by June 2021, and the development will improve the country’s energy situation by limiting its reliance on the Strait of Hormuz and opening up Southeast Asian markets to Iranian oil. In addition to promoting economic ties with the rest of Asia the move also allows Iran to potentially shut off the Strait of Hormuz in a crisis situation, a hypothetical move which never made sense in the past given that it would kill its own energy exports. Naturally, sanctions have been applied to the project but this has simply been used as an opportunity to develop domestic industrial capacity: over 95% of the parts for the Goreh Jask pipeline have been sourced domestically.
Iran is increasing its influence in Iraq and Syria
The increased Iranian influence on Iraq suggests that supporting the overthrow of Saddam Hussein may have been a miscalculation by the Western bloc. The government of Hussein was aggressive on Iran-Iraq border issues and had a large and powerful military. With Iraq’s expensive military infrastructure largely destroyed and a diminished American presence, Iran has grown its soft power both through religious and economic outreach.
In southeastern Iraq, Iran is massively expanding and developing Shia shrines at sites like Kerbala as a method of promoting its influence. Some of these developments are enormous, for example the $600 million expansion of the Imam Hussein shrine, which was mostly constructed with Iranian funds and parts. These developments also give economic opportunity to both Shia and Sunni Iraqis who are paid to work in construction and benefit from increased tourism. Conducting business in eastern Iraq also gives Iran an opportunity to transact in a region unaffected by sanctions.
Political power is another way that Iran has expanded its reach. The prime minister of Iraq is aligned with the Saudis and Americans but outnumbered in parliament by pro-Iranian MPs, and has been able to do little to diminish the Iranian presence.
As far as Syria, the Iranian angle must be considered. In July of 2015, Quds force General Qasem Soleimani visited Moscow to work out the details of the Russian intervention with Vladimir Putin. Although Moscow denies this likely to maintain good relations with Israel, Hassan Nasrallah of Hezbollah recently stated that it was Soleimani that convinced Putin to enter the conflict. What was exchanged during that conversation in July of 2015? It is impossible to know but it can be reasonably assumed based on how things unfolded that the Russian intervention was largely a cover for Iranian movement into Syria.
The majority of the leg work performed in the Syrian Civil War was done by Syrians and Iranians. While Russia provided crucial air support and logistics, the on-the-ground troop counts have remained small. What Russian intervention did however was to provide the stamp of legitimacy of a powerful, nuclear armed nation to the Syrian/Iranian side, to prevent any major invasion, and to quickly soften the tones on the Assad government. By clearing ISIS out of central Syria, Iran has now created a contiguous path through Syria and Lebanon and upheld its Syrian ally at the expense of the Saudis.
Pakistan is drifting to Iran
In recent history Pakistan has been heavily dependent on Saudi Arabia, in part due to a Sunni majority and a large amount of outstanding loans financed by the Kingdom. As Sheikh Imran Hosein put it unflatteringly, Pakistan has served as “a shoeshine boy for the Saudis.” Several wedges are growing between this strong historical relationship.
First, Pakistan is warming to its neighbor Iran and the new prime minister of Pakistan has accelerated ties with its western neighbor in many areas. One is the accelerated development of a massive Istanbul-Tehran-Islamabad railway which highlights an emerging challenge to Saudi supremacy: the nascent Turkey/Iran/Malaysia/Qatar bloc in the Muslim world could potentially expand to include Pakistan. Keeping Pakistan away from Iran has long been an intention of the Saudis, who sought to fuel tensions with their neighbor by financing anti-Shia terrorism in Pakistan in the 80s and 90s. Nevertheless, the two countries seem to be getting over it and the populations of both nations rate each other positively in opinion polling.
Another sign of nervousness in the West about Pakistan-Iranian integration is the failed attempt to stop the construction of the new Iran-Pakistan oil pipeline with threats of sanctions. This will further pull Pakistan into the Iranian orbit.
A new major straining factor on the relationship with Saudi Arabia is Riyadh’s unwillingness to defend Pakistan’s claims to the disputed Kashmir border region. Pakistan has hoped that the Kingdom would defend its claim, but Saudi Arabia has been unwilling to do so.
Finally, there is the issue of Israel. Saudi Arabia would like to recognize Israel as soon as possible but doing so would cause massive protests in Pakistan and ruin the Saudi reputation there. Therefore it is trying to pressure Pakistan to first recognize Israel, something which would be unpopular and put the Pakistani government in a precarious situation domestically.
The Saudis are losing their status as the head of the Muslim world
Consider the Iranian ambassador to Pakistan’s recent comments while promoting the D-8 organization of Islamic nations:
“Countries like Iran, Pakistan, Turkey, Russia and China have the potential to form a new alliance for better future of the region”
None of this economic integration would be occurring if not for the US sanctions policy. The impact of sanctions has been to lay the groundwork for creation of a “Zone B” which circumvents the Empire entirely. A model that replaces proxy wars, regime change, and terrorist funding with peaceful economic integration and diplomacy. If Iran had full access to international markets it would have been content to sell its exports to the highest bidder and would not be forced to expand its influence regionally as it is currently doing.
What does this emerging “Zone B” look like? Well, let’s start with the Muslim countries labeled an “Axis of Evil” by George Bush and John Bolton:
Syria, Iraq, Iran. And of course we can add in Lebanon, Yemen, and Palestine right off the bat to this anti-imperial bloc. The growing ties between Sunni Pakistan, heterogeneous Syria, and Shia Iran foreshadow a geographically contiguous model of peaceful relations between Islamic nations untainted by the Takifirism of Saudi Arabia, with Syria and Lebanon serving as a tolerant bridge between the Sunni and Shia regions of the Arab world.
This bloc could then be combined with the D-8 Muslim countries: Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey. D-8 alone represents one billion people and over 60% of the Islamic world. Iran, as a major advocate of inter-Islamic integration through organizations such as D-8 would be the lynchpin connecting the resistance nations of the Arab world with the larger emerging Islamic economies in a new trade network to bypass sanctions. (It is worth adding that all D-8 nations other than Turkey supported Syria’s side against Saudi in the civil war, so such an alliance is not much of a stretch by any means.)
Add in China, Russia, Mongolia, Myanmar, and the ‘stans and this new Asian empire would come to span a lion’s share of the planet’s population, GDP, energy resources, and habitable surface area. Moscow and Berlin would emerge as gates between East and West while the sprawling trading network of China would provide an alternative to the overregulated and strings-attached commerce and financing available in the West. China has already replaced America as the major trading partner for most nations.
Though there are other concurrent factors at play, the state of Saudi Arabia which once served as the lynchpin for dividing the Islamic world is diminishing, as Eurasian integration progresses naturally. No color revolutions or regime change are required for this process to continue because:
Zone A’s claims to upholding human rights and other civil liberties increasingly appear like a bad joke: undermined by lockdowns, tech censorship, and politically correct speech codes
Zone B is working past historic rivalries in the pursuit of development while Zone A embraces legally enshrined racism and creates complex taxonomies of privilege to delineate tiers of citizenship
Zone B’s population is growing while Zone A’s is declining
Zone B’s share of global wealth is growing while Zone A’s is declining
Zone B has a burgeoning middle class while Zone A’s middle class is disappearing
Zone B is doing away with extreme politics while Zone A is swept by cultural revolution
The Ister is a researcher of financial markets and geopolitics. Author of The Ister: Escape America
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