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Today is Monday 4th January 2016 and we are addressing the issue of Saudi Arabia expelling
Iranian Diplomats and the increasing tension in the Region.
The BBC reported today that “Saudi Arabia has given Iranian diplomats two days to leave
the country, amid a row over the Saudi execution of a top Shia Muslim cleric.”
On Saturday 2nd January Saudi Arabia executed 47 prisoners who had been convicted of terror
related offences.
Most of the 47 people executed were Sunnis convicted of involvement in al-Qaeda-linked
terror attacks over the last decade.
Sheikh Nimr al-Nimr was one of the 47, and had been a persistent critic of Saudi Arabia’s
Sunni Royal family.
He had been arrested many times during the past 10 years and alleged that he had been
beaten by the Saudi secret police on one occasion.
He had a strong following from Saudi Shia’s especially youth members.
Sheikh Nimr was involved in anti-government protests that erupted in Saudi Arabia in the
wake of the Arab Spring, up to his arrest in 2012.
Sunday evening, police came under heavy gunfire in his home town of Awamiya in Saudi Arabia's
Eastern Province, leaving one civilian dead and a child injured, according to the Saudi
Press Agency Security forces called the incident a "terrorist"
act.
Saudi Arabia announced it was severing diplomatic relations with Iran after demonstrators stormed
the Saudi Embassy in Tehran, and late on Sunday gave Iranian diplomats 48 hours to leave.
It has also recalled its diplomats from Tehran.
Saudi Foreign Minister Adel al-Jubeir said Saudi Arabia would not let Iran undermine
its security, accusing it of having "distributed weapons and planted terrorist cells in the
region".
Iran's Supreme Leader Ayatollah Ali Khamenei warned that the Sunni Muslim Kingdom would
face "divine revenge" for the execution - an act which also angered Shia Muslims elsewhere
in the Middle East.
This destabilisation will certainly unsettle any progress made between the US and Iran
and its relationship with Saudi Arabia.
Such tensions can only lead to further uncertainty in the financial and commodities markets.
The US has already called for “leaders across the region to take affirmative steps to calm
tensions".
Analysts are already saying that Saudi Arabia's decision to sever diplomatic ties with Iran
on the heels of its execution of a Shiite cleric could be an ominous sign that something
much more serious is in the offing.
Fawaz Gerges, chair of contemporary Middle Eastern studies at the London School of Economics
said “The diplomatic rupture between Saudi Arabia and Iran could easily spiral out of
control," He added “"The situation is extremely volatile between the two most powerful states
in the Gulf, Sunni-dominated Saudi Arabia and Shiite-dominated Iran.
You have a war of words.
You have war by proxies ... This really could get very ugly and dangerous in the next few
weeks and next few months," Retired Lt General Mark Hurtling told CNN
“It's possible a more direct military conflict between Saudi Arabia and Iran could erupt”
Ian Bremmer, President of the Eurasia Group consulting firm said “There are domestic
reasons for both of these countries right now to refuse to pull punches against each
other," …. Saudi Arabia, is dealing with plummeting oil prices and an internal succession
battle over who will next take the throne.
Iran, needs a way to block reformists and Western advances in light of the recent nuclear
deal.
For both sides, he said, “nationalist behaviour can score points at home……..That, makes
this an incredibly dangerous conflict."
We have already seen gold rise today by $17 up 1.6% and silver by 36 cents up 2.6 %. These
figures being curtailed or capped somewhat by poor PMI data or manufacturing data being
announced by China.
The next couple of weeks will prove quite volatile for sure.
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Disclaimer:
Illuminati Silver owners come from a background of Banking, International Wealth Management
and Economics.
Having now retired from these worlds we are not qualified to give investment advice.
Therefore, this and other productions must not be deemed to be giving such advice and
merely represent the personal views of its owners.