Saudi Arabia Could Scale Down Conflicts After US Backing

Saudi Arabia has the staunch support of U.S. President Donald Trump following the killing of journalist Jamal Khashoggi, and the oil-rich kingdom may make concessions to its American ally in return.

Political analysts say Saudi Arabia’s King Salman and Crown Prince Mohammed bin Salman may scale back the war in Yemen and the blockade of Qatar. Such moves would allow Saudi Arabia “to show some good faith to the U.S. and to retain the high level of strategic support that it has from the White House,” Emily Hawthorne, Middle East and North Africa analyst at think tank Stratfor, told CNBC.

Saudi officials did not respond to a CNBC inquiry about whether they would change their Yemen or Qatar policies.

In April, Secretary of State Mike Pompeo told officials in Riyadh to end its land, maritime and air blockade against Qatar. Saudi Arabia — along with Bahrain, the United Arab Emirates and Egypt — severed ties with Qatar last year, accusing it of supporting terrorism. Qatar denies that it supports terrorism.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza