A possibility seems to happen an open war between the two oil-rich countries of the middle east. While many believe that the risk of full-blown war remains low, there is no doubt the tensions between the two arch-rivals of the Middle East rivals has escalated in last few months. However, the Iran-Saudi Arabia tension is often seen as a conflict between two major Islamic – Shia and Sunni, but it is more about geopolitics than anything. The two countries have been battling each other for regional hegemony for years.
There would be a sharp rise in crude oil prices in the global market if Saudi Arabia and Iran indulged in a full-blown military confrontation in a bid to become the most dominant country in the Middle East. The effect will also appear in India and petrol price would go all-time high. Such increase in petrol prices will have adverse effects on the livelihood of middle-class families.
A cold war between Saudi Arabia has been going on for decades. An armed conflict between Riyadh and Tehran would have a major impact on oil markets. If a conflict happens, oil prices could increase 500 percent, said international media reports. In India, petrol is being sold nearly at Rs 70 per litre. If crude oil prices would see a 500 percent hike, price in India will surely go beyond Rs 300 per litre.
What triggered the fresh tension between Iran and Saudi Arabia is suspected arrest of Lebanese Prime Minister Saad Hariri in Riyadh. Hariri, in a broadcast from Riyadh, suddenly announced his resignation, blaming Iran’s “grip” on his country via Shiite movement Hezbollah. He appeared on television on Sunday night for the first time since his abrupt resignation on November 4 and rejected what he called rumors of his detention in Saudi Arabia and promised a return to Lebanon “very soon”.
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