The restoration of diplomatic ties between Saudi Arabia and Iran adds to signs that geopolitical tensions in the Middle East are easing, which may help to reduce risk premia in financial assets in the region as well as the oil market. Tensions will not completely disappear, however, and China’s role in brokering the agreement highlights again that Saudi appears to be turning towards Beijing and away from the West. A revival of Iran’s nuclear deal would be needed to have a material impact on the oil market, but there is still a long way to go on that front.
In view of the wider interest, we are also sending this MENA Economics Update to clients of our Energy service.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services