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Almost Everything is About Oil in the Middle East

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Perhaps the most extraordinary part of Iran’s April 13 attack on Israel was that it was countered by a coalition that included Jordan, Saudi Arabia and the United Arab Emirates (UAE). It is also noteworthy that this was the first time that the United States engaged militarily in Israel’s defense.

The events of April did not begin with the October 6, 2023 strike on Israel from Gaza but have their origins decades earlier. It is now evident, however, that the catalyst for Hamas’ attack was the impending normalization of diplomatic relations between Saudi Arabia and Israel.

This would have had significant consequences for Israel’s oil supply, an important aspect of the present crisis that is rarely discussed by the press or politicians. Almost everything is about oil in the Middle East.

The Saudis were ready to join the Abraham Accords that in 2020 established ties between the UAE, Bahrain, Sudan, Morocco and Israel on regional security and trade.

As a direct consequence, Israel was officially moved under the U.S. Central Command (CENTCOM) area of responsibility in early 2021, shifting from its decades-long alignment with the U.S. European Command (EUCOM).

The timing of the Gaza incursion into Israel in October was designed to prevent Saudi Arabia from joining the Abraham Accords.

It is hardly a coincidence that Houthi attacks on shipping in the Suez Canal and the Red Sea started in November. Almost 9 million barrels of oil per day (mmb/d) pass through the Canal and the Bab al-Mandab Strait.

It’s worth recalling that the Houthis have been in an armed conflict with Saudi Arabia in Yemen since 2015, and were responsible for attacking the main Saudi refinery complex in 2019. Both Hamas and the Houthis, along with Hezbollah in Lebanon, are funded and largely directed by Iran.

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