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The Evolution of America and Saudi Arabia Relationship
The relationship shared between America and Saudi Arabia represent an important dynamic in global politics. This bond did not just blossom overnight, but stemmed from a complex history of mutual interests and geopolitical necessities.
While the US and Saudi Arabia enjoy a close relationship today, it wasn't always rosy. The relationship has evolved significantly since its relatively humble beginnings in the early 20th century.
Root of the Relationship Between America and Saudi Arabia
It's crucial to glance back at the root cause to understand the current scenario. The initial contact between America and Saudi Arabia didn't occur until 1931, constituted by a relatively modest commercial operation.
The meeting led to the establishment of diplomatic representation in Jeddah in 1944, which was upgraded to full embassy status in 1948.
- The King-Crane Commission report of 1919 made America aware of the Kingdom's potential as an 'ally' in the Middle-East.
- In 1925, Ibn Saud captured Jeddah from Sharif Hussein, consolidating today's Saudi Arabia.
- The US was neutral when the Kingdom's borders were defined after long disputes with Yemen, Iraq, and Jordan.
From Samoil Politics to Strategic Allies: The US-Saudi Story
The 1933 oil concession agreement between Standard Oil of California (Socal) and the Saudi government is area of importance in the history of the America-Saudi Arabia relationship.
In return for payment and royalties, the Saudi government granted Socal a 60-year monopoly on the Kingdom's vast oil resources.
| 1933 | Oil concession agreement signed |
| 1938 | Commercial production of oil begins |
| 1940s | World War II intensifies the need for Saudi oil |
When and How did America and Saudi Arabia Become Allies?
The bond has only grown stronger after the World War II.
.- In 1945 President Franklin D. Roosevelt and King Abdulaziz of Saudi Arabia established close cooperation.
- The US acknowledged the strategic role that Saudi Arabia could play in the region, specifically in combatting communism during the Cold War era.
- The foundation of the relationship today is built on America's need for oil and Saudi Arabia's requirement of security and military aid.
A classic example is the 1990-91 Gulf War II, the US-led multi-state coalition against Iraq diversified the security dimension of the relationship.
Why is America and Saudi Arabia Still Inseparable?
The intertwined dynamics of America and Saudi Arabia find their roots deeply embedded in decades of geopolitical and economic interplay. The shared interests, be it political or economical, have endured the test of time, induced stability and formulated what we see as an 'inseparable' bond.
Exploring the enduring bonds between America and Saudi Arabia
The endurance of America's bond with Saudi Arabia is largely attributed to some major factors including the Kingdom's strategic geopolitical position, the mutual reliance on oil resources, and the fight against common foes and threats.
Since the Cold War era, Saudi Arabia's geopolitical position has been crucial in the Middle-East. The Kingdom sits at the crossroads of Europe, Asia, and Africa, making it an ideal partner for projecting influence.
- Since the 1930s, America has needed Saudi oil, which has secured an economic partnership between the two nations that is still enduring.
- In many instances, the US has sought Saudi cooperation to counter and neutralise regional threats.
- The use of Saudi soil to launch military operations has also been crucial for America's strategic interests.
The Political Reasons Behind US-Saudi Inseparability
The inseparability of America and Saudi Arabia occurs for various political reasons. From regional security to combating terrorism, the intricate political ties touch several areas.
In turn, America provides military and political assistance to maintain stability within Saudi Arabia and guarantee its sovereignty.
- America sees Saudi Arabia as a critical partner in managing Middle-Eastern security.
- The cooperation between the two countries helps suppress terrorism and promotes peace in the region.
- A semblance of democracy is desired by both nations, rooting for a more balanced power structure in the Middle-East.
One major instance was during the 1990-91 Gulf War when the US and Saudi Arabia joined against a common enemy, Iraq, and later in the War on Terrorism post 9/11.
The Economic Factors Binding America and Saudi Arabia
The economic side of America and Saudi Arabia's inseparability is strongly tied to the petro-dollar system and Saudi Arabia's role in OPEC.
The Petrodollar system is a mechanism created in the mid-1970s where the US and Saudi Arabia agreed to price oil in dollars globally.
- The petrodollar system has preserved the global demand for the dollar even after the gold standard was abandoned.
- Saudi Arabia's role in OPEC supports price stability in the global oil markets, indirectly strengthening the dollar.
- The two nations are also bound by a significant amount of reciprocal investments.
The dealings of Arabian American Oil Company (ARAMCO) and Saudi Arabia's multi-billion dollar investments in American bonds and securities are indicative of the deep economic ties.
Key Events in America and Saudi Arabia Relationship in 1980
The year 1980 was indeed pivotal for the alliance between America and Saudi Arabia. The unfolding geopolitical situations further pushed the two nations into a closer strategic relationship, based on mutual benefits and shared regional interests.
1980: A Turning Point in US-Saudi Relations
1980 was a turning point in US-Saudi relations due to various political occurrences, such as the Islamic Revolution in Iran and the Iran-Iraq war. During this period, the Saudi Kingdom faced threats on multiple fronts, and the importance of the US alliance became more evident than ever.
The Iran-Iraq war, 1980-1988, witnessing two of Saudi Arabia's neighbours embroiled in a destructive war, left the Kingdom more reliant on its American allies for security and protection.
- Post the Islamic Revolution in Iran, the regional arena's balance shifted tectonically.
- Iran's efforts to export its revolutionary ideals put conservative regimes like Saudi Arabia at the threat of destabilisation.
- Simultaneously, Iraq, under Saddam Hussein, invaded Iran, sparking a decade-long war which cast a shadow of insecurity over the region.
The Carter Doctrine, announced by US President Jimmy Carter in 1980, pledged to use military force, if necessary, to defend the Persian Gulf area against adverse forces. The Doctrine was a clear sign of support to Saudi Arabia and its Gulf neighbours, in the face of a potential Iranian or Soviet threat.
| 1979 | Islamic Revolution in Iran and US Embassy Siege |
| 1980 | Start of the Iran-Iraq war and announcement of Carter Doctrine |
| 1980s | Gulf Cooperation Council (GCC) was established |
Impacts of the 1980 Changes on the US and Saudi Alliance
The changes in 1980 had a profound impact on the strategic alliance between the US and Saudi Arabia.
- To combat the perceived threat from Iran, the US established a Rapid Deployment Force to deter any military/political aggression.
- The developments strengthened the Saudi-US military alliances and cooperation.
- From the 1980s, Saudi Arabia started receiving large imports of advanced US military hardware.
One example of increased security cooperation was the large-scale joint military exercise between the US and Saudi Arabia named "Bright Star" in 1980. Furthermore, the US started using airbases in Saudi Arabia for its monitoring missions of Iraq and Iran.
The 1980s also marked the establishment of the Gulf Cooperation Council (GCC), an intergovernmental political and economic union consisting of all Arab states of the Persian Gulf except Iraq. US endorsed the GCC and it fortified an institutional mechanism to counter potential threats to Saudi Arabia and its neighbours.
- Economic ties also took a surge.
- The Petro-dollar recycling system became prominent, with Saudi Arabia investing its oil revenue surpluses into US treasuries and other securities.
- Saudi Arabia further liberalised its economy and opened up to foreign investments, which was beneficial for American businesses.
A significant example is Saudi Arabian Monetary Agency's (SAMA) investments in US Treasuries, which increased exponentially during the 1980s, making Saudi Arabia one of the largest foreign holders of US government securities.
US-Saudi Oil Politics: A Critical Analysis
There's no denying the pivotal role played by the oil sector in strengthening the navy chord of US-Saudi relations. The 'Black Gold', as oil is often referred to, transcends mere trade boundaries to affect the geopolitical landscape and strategic ties betwixt these nations. Let's get down into the details right away!
How Oil Politics Defines the US-Saudi Engagement
The proceedings of oil politics have not only fortified but also dictated the course of America and Saudi Arabia engagement. The United States of America, with its insatiable appetite for fossil fuels, and Saudi Arabia, as one of the leading oil-supplying nations, have complemented each other's economic and political interests.
Throughout the 20th century, the term 'oil politics' continuously resurfaced as it became apparent that whoever controlled oil could steer world politics and economy. The energy security of nations was now tied with petroleum, leading to massive geopolitical shifts.
- Oil has, over the years, remained a staple commodity influencing the global economic dynamics. And who plays a dominant role in it? Without much ado, it's the Saudi Kingdom!
- The US, on the other hand, despite its strides in energy production, has remained a net importer of oil.
- Flow of oil and energy security have been the bedrocks of their interaction.
Energy Security is the uninterrupted availability of energy sources at an affordable price. It encompasses the reliable supply of affordable fuels and prevents drastic price swings that could harm the economy.
The Role of Oil Politics in the America and Saudi Arabia Relationship
Oil politics has arguably been the most influential factor in shaping the America and Saudi Arabia relationship. From being the catalyst that initiated the relationship in the 1930s to being the underlying constant in different phases of their political engagement, oil always found its relevance.
- The inception of the alliance can be traced back to oil when the Kingdom granted concessions to Standard Oil of California in the 1930s.
- The demand for oil spiked post World war II and with it, Saudi Arabia's strategic importance started soaring in the eyes of Uncle Sam.
- In the 1970s, the Arab Oil embargo made apparent the power of oil politics and the importance of Saudi Arabia as a strategic partner in maintaining global oil market stability.
- Establishment of the petro-dollar system, ensured the US dollar's supremacy and further tightened the US-Saudi alliance.
Petro-dollar system essentially means oil transactions around the world are conducted in US dollars. This arrangement, agreed between US-Saudi Arabia in the mid-1970s, has helped in securing the global dominance of the dollar.
For instance, during the 1973 oil embargo by Arab states, the US faced severe gasoline shortages which lead to drastic measures like gasoline rationing. The event galvanized the US into action, focusing on forging strategic alliances with oil-rich nations to secure its energy security. The aftermath further enhanced Saudi Arabia's strategic value for the US.
| 1930s | Oil Concession Agreement boosts the relationship |
| Post WWII | Strategic importance of the Kingdom increases |
| 1973 | Arab Oil Embargo shows the power of Oil Politics |
| Mid 1970s | Establishment of the Petro-dollar system stabilises US dollar |
The Cold War Alliance between US and Saudi
The Cold War era was a significant phase that crafted the geopolitical arena and heavily impacted the dynamics of international relations. One of the alliances that matured in this period and remains crucial till today is one between the United States and Saudi Arabia.
Revisiting the Cold War: The Alliance Between the US and Saudi Arabia
The Cold War, characterised by ideological struggles between the East (Soviet Union and its allies) and the West (United States and its allies), reshaped the alliances globally. Amidst this, a new relationship was being forged in the Middle East - the alliance between America and Saudi Arabia.
In the sands of Arab, a relationship was moulded that managed to survive the test of the Cold War and extends to the present with increased significance.
- After World War II, as countries started positioning themselves in either of the blocs, Saudi Arabia found itself tilting more towards the Western Bloc due to ideological affinities and geopolitical reasons.
- As Cold War progressed, the oil-rich Kingdom grew in its strategic significance for the US, which looked upon it as an important ally in the Middle East.
- Owing to its position, Saudi Arabia acted as a counterweight to communist-leaning countries in the region.
The Cold War was a state of political and military tension after World War II, primarily between powers in the Western Bloc (led by the United States) and powers in the Eastern Bloc (led by the Soviet Union). It was defined by diplomatic standoffs rather than large-scale conflicts.
The Cold War Impact on the US-Saudi Relationship
The Cold War had significant implications for the relationship between the US and Saudi Arabia. The international instability that the Cold War produced led to both nations seeing each other as valuable assets in their respective global strategies.
- From the American perspective, Saudi Arabia represented a bulwark against the spread of communism in the Middle East.
- As a founding member of Arab League and OPEC (Organisation of Petroleum Exporting Countries), Saudi Arabia had an increasingly influential role in regional affairs that the US hoped to utilise.
- For Saudi Arabia, the alliance with the US held a promise of security assistance and military protection.
OPEC is an intergovernmental organisation of 13 nations, founded in 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), and headquartered since 1965 in Vienna, Austria.
During the Cold War, when Egypt under Nasser and other countries were swaying towards the USSR, Saudi Arabia, with US support, positioned itself as a dependable alternative for western allies in the region.
| Post WWII | Saudi Arabia started leaning towards Western Bloc |
| Cold War Progressed | Strategic Importance of Saudi Arabia grew in US's eyes |
| Cold War | US-Saudi relations basks in the heat of Cold War |
America And Saudi Arabia - Key takeaways
- The 1933 oil concession agreement between America's Standard Oil of California (Socal) and Saudi Arabia granted Socal a 60-year monopoly on the Kingdom's oil resources.
- The foundation of the America and Saudi Arabia relationship is built on America's need for oil and Saudi Arabia's need for security and military aid.
- The America and Saudi Arabia relationship is sustained due to the Kingdom's strategic geopolitical position, the mutual reliance on oil resources, and the fight against common foes and threats.
- The political relationship between America and Saudi Arabia is characterized by joint efforts in managing Middle-Eastern security, suppressing terrorism, and promoting peace and political balance in the region.
- Oil politics plays a pivotal role in the relationship between America and Saudi Arabia, with the Petrodollar system and Saudi Arabia's role in OPEC (Organization of Petroleum Exporting Countries) strengthening their economic ties.
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