As part of negotiations for Saudi Arabia to recognize Israel, the United States is demanding that Riyadh keep pricing its oil in dollars, not China’s renminbi or other currencies.
by Ben Norton
Part 1
The United States is negotiating behind the scenes with Saudi Arabia, pressuring the country to keep selling its oil in dollars.
Washington is concerned that Riyadh may price its crude in other currencies, particularly China’s renminbi.
Saudi Arabia is one of the world’s top three oil producers. Since the 1970s, Riyadh has agreed to sell its crude in dollars, helping maintain the greenback’s hegemonic status as the global reserve currency.
Washington is concerned that Riyadh may price its crude in other currencies, particularly China’s renminbi.
Saudi Arabia is one of the world’s top three oil producers. Since the 1970s, Riyadh has agreed to sell its crude in dollars, helping maintain the greenback’s hegemonic status as the global reserve currency.
The Wall Street Journal reported that the US is working on a diplomatic deal in which Saudi Arabia would agree to normalize relations with Israel’s apartheid regime.
In return, Riyadh wants Washington to pledge to always protect it, as well as help in developing a nuclear program.
Although the negotiations are ostensibly about Israel-Palestine, the Wall Street Journal noted that the US is using the deal to pressure “Saudi Arabia to impose limits on its growing relationship with China”.
“The Biden administration is seeking assurances from Saudi Arabia that it will distance itself—economically and militarily—from China”, the newspaper added, citing anonymous US officials.
In return, Riyadh wants Washington to pledge to always protect it, as well as help in developing a nuclear program.
Although the negotiations are ostensibly about Israel-Palestine, the Wall Street Journal noted that the US is using the deal to pressure “Saudi Arabia to impose limits on its growing relationship with China”.
“The Biden administration is seeking assurances from Saudi Arabia that it will distance itself—economically and militarily—from China”, the newspaper added, citing anonymous US officials.
In terms of Saudi-Chinese relations, Washington has three main demands, according to the Wall Street Journal:
“assurances that Riyadh will use U.S. dollars, not Chinese currency, to price oil sales”,
“assurances that Riyadh will use U.S. dollars, not Chinese currency, to price oil sales”,
“assurances from Saudi Arabia that it won’t allow China to build military bases in the kingdom”, and
“limitations on Saudi Arabia using technology developed by China’s Huawei”.
While many analysts have speculated that the US military will gradually leave West Asia, to prioritize the new cold war, the report emphasized that President Joe Biden’s “focus on the deal [with Saudi Arabia] is a reflection of his view that America has to remain a central player in the Middle East to contain Iran, isolate Russia for its war in Ukraine and thwart efforts by China to supplant Washington’s interests in the region”.
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