16 Comments

IIRC, Saudi interests are in conflict with neo-Ottoman interests and could help curtail the ambitions of the HTS regime in Syria? The regional tensions definitely look different than that did a year ago.

Expand full comment

Yes, that's an excellent point.

Expand full comment

Not saying I disagree, but how would you describe the nexus of Trump's interests and the Saudi interests? It's stated as a given, but I don't see the specific reason they are together. To say 'they want power and to protect their interests" is fine, but it's also broad.

Expand full comment

Right - do you mean why Trump wants the relationship with the Saudis, or the Saudis with Trump? Or why their relationship makes sense? Happy to answer it from whichever direction I didn't do a good job explicating in the article.

Expand full comment

What does Trump Admin. actually get from the relationship? Saudi acquiescence to lower oil prices, increased American production? What is the tangible thing? It's not as though Trump's individual position in the United States is reliant on Saudi good will.

Expand full comment

From what I understand, the Trump organization is in dire economic circumstances, and Trump himself -- having only 4 years of security as the President -- is already thinking of what comes next for him and his legacy. The Saudis have proven loyal allies able to make up for these shortfalls, insulating Trump and his family from future financial risks.

Expand full comment

You seem to gloss over when Biden told the Saudis to back down and are not acknowledging the Swift banking system not sanctioning the houthis

Are you indicating that the payoff money is a farce as I see it to be?

Expand full comment

You're right, I'm ignoring the SWIFT system in this case because I have not heard it to have the magnitude of effect I think you're suggesting it does on the Houthi financial position.

While important, SWIFT has been cut down as a central system for criminal organizations, who now have other options for international money transfer.

Add to that the Islamic Finance system -- Hawala -- and I do not think cutting off SWIFT is helpful, because at the very least SWIFT can provide a bit of intel on amounts, directions, etc, of flow.

As for Biden's work with the Saudis on this ...I don't have enough information to comment.

Expand full comment

I'm suggesting that multiple factors including banking denial that are hyperactively deployed against other actors yet are not being employed against yemen.

The hyper focus on Gaza aid might cause you pause to shrug and say nothing can be done, anything can be done with hyperfocus which intertwined governmental entities do often.

My point is it's a fixable problem but the powers that be hyperfocus on problems of their own manufacturer

Expand full comment

The powers that be have enabled the houthis to continue by not sanctioning them through the Swift banking system and the powers that be got Biden to get the Saudis to stand down against the houthis after they blew up their oil fields. Egypt must be making some noise about Suez above and beyond the cost to the world being absorbed. Despite them not being held accountable for facilitating the tunnels and worse. Demini the new yutz in charge of State wants to supplicate to Iran. How are the Saudis calling the shots?

Expand full comment

The Saudis made peace w the houthis after years of trying to decimate them by paying them off. They preferred stability to all out war with them, just as they do with Iran. Remember, their bottom line is the survival of the family, and they're willing to do what it takes - including earning a few less billions they don't need - to gain it.

Expand full comment

I'd say that's speculation as opposed to pragmatism and proof, they were told to stand down under Biden and would have preferred to wipe out any proxy that has threatening Force projection such as them wild-eyed houthis, but educate me further if possible and show me where I'm wrong.

Expand full comment

I think this is a good overview, if we are talking about the Houthis:

https://foreignpolicy.com/2024/01/16/saudi-arabia-red-sea-conflict-houthis-us-strike/

Expand full comment

I read the article and foreign policy articles have an abstract interpretation requirement to facilitate processing because of the lack of contextual realities.

Hudna, meaning that the farce of negotiating with houthis promises broken implied and guaranteed.

Suez income deprivation for Egypt and the world cost incursion because of the tolerance of the houthis.

International Swift banking system has not sanctioned the houthis thus facilitating them to continue economically.

Constricting of free trade being facilitated by inaction chosen by the United States.

Saudi has an Air Force that could eliminate their thousands of houthi jihadis when they gather for rallies along with deconstructing their ports, oil facilities and power structures to enable the potentially good folks of Yemen to reclaim their land and legitimacy from the illegitimate houthi and arab on Arab violence is shrugged off by the world. Obviously the US told the Saudis to let the barbarians maraud under Biden for reasons.

But why continue with the facade of tolerating an illegitimate terrorist entity to choke off trade and threaten innocent neighbors.

Expand full comment

I hear you about the trade aspect, although I think you overemphasize it. The Houthi regime is a pirate regime, and does not rely on formal banking to maintain its leadership's position, while it could care less about it's population which it oppresses.

As for the Saudis, they bombed and starved the Houthis for years ...and didn't make progress. Which is why they decided to pay them off instead. Protection money.

Expand full comment

Houthi Blockade Shipping Costs

The Houthi blockade in the Red Sea has significantly increased shipping costs. For instance, sending a ship through the Suez Canal now costs between $3 million and $5 million, including higher insurance charges, security, and danger pay for the crew. Diverting around the Cape of Good Hope adds seven to nine days to the trip from Asia and could cost $2 million for the same type of ship. Additionally, the cost of shipping oil on Suezmax tankers has risen to as much as $85,000 a day, while Aframax vessels cost $75,000 a day. These increased costs are due to heightened security measures and longer shipping routes to avoid the dangerous Red Sea area.

Expand full comment