One quick clarification – earlier this week I said PM Abadi was in Saudi Arabia on business. Obviously this was a mistake, as the current Prime Minister of Iraq is no longer Abadi. Nonetheless! The actual PM of Iraq, Abdul Mahdi, was indeed in Saudi Arabia – and the resulting news is a bit of a present, if you ask me. As I was getting ready to post this, a perfect article was posted. The focus is heavily on Iraq, the benefits to Iraq, and not much else. In what world is that a deal we expect to see from the Saudis… are they suddenly charitable people operating for the sole purpose of World Peace and charity? I don’t think so. Therefore, the equalization simply isn’t being mentioned. Article: “Historical agreements between Iraq and Saudi Arabia” …Saudi Arabia is important to Iraq. …Iraq has 3 major countries that border it, and only one actual connection to water. Aside from that small bit of beach…Iraq is landlocked.
The two largest borders are Iran and Saudi Arabia. Both countries present opportunities for oil delivery… in order to sell their oil, they must deliver it. In order to deliver the oil, it must get to the sea, unless they are to limit their market to the 6 countries that border them… and why would other oil rich countries pay a premium to Iraq? They would not, and will not. So it’s in Iraq’s best interest to have great relationships with it’s neighbors, and it’s important that the global market approves of these relationships. Iran and Syria are questionable allies…but Saudi Arabia is a solid partner. This is why I’m excited to see Iraq buddying up with Saudi Arabia, and it’s even more exciting that it’s not exactly clear what Saudi Arabia has to benefit at this time. I think we all know, or can use our imaginations. Saudi Arabia has a longstanding position of “middle”…not anti-Iraq, but not the opposite either. Why, now, are they opening their arms? Maybe someone is expecting a change, and they want pole position.