Changing the Modality of Saudi-Iranian Relations as a Factor in the Global Oil Market

Abstract

The research aims to comprehend the impact of relations between Saudi Arabia and Iran on the global oil market. The research objectives are (1) to analyze the reasons for forming the current economic and political links between the two countries and (2) to identify the possible consequences of improving relations between these countries for the stability of global energy markets and ensuring reliable oil supplies. The current modality in bilateral relations has been formed as a result of many differences and discrepancies in the political and economic priorities of the countries. Since the studied countries are among the largest energy exporters, their economic relations greatly influence the oil market. There are also several emerging opportunities in the region. Among the prospects, the authors highlight an increase in China’s economic presence in these countries and a potential opportunity for Russian companies to gain a foothold in the developing Iranian economy. The research contains an in-depth analysis of the economic and historical context of the bilateral relations between Saudi Arabia and Iran, the geopolitical and strategic importance of the countries for the oil market, and development scenarios in the context of the ongoing improvement of Saudi-Iranian relations.