(1) “The United Arab Emirates,” today “made a shock request of [Pakistan] — repay $3.5bn immediately” [1].
(2) Saudi-Emirati relations were at an all-time low before the Iran War [2]. (Saudi Arabia just bailed Pakistan out of its Emirati loan. Saudi Arabia and Pakistan agreed a mutual-defence treaty last year [3].)
Put together, we’re seeing an Emirati-Israeli axis emerging to balance Saudi hegemony in the Gulf and Iranian hegemony over the Persian Gulf. I’d expect to see an Emirati deal with Egypt and India next if this hypothesis is correct.
What I don’t yet see is the ambition of the endgame. Is it Saudi Arabia backing off in Africa? Or is it seizing the Musandam Peninsula, islands of the Strait and possibly even territory on the other side?
[1] https://www.ft.com/content/99073d6e-4b57-417f-88fb-7a2c0e55e...
[2] https://www.nytimes.com/2025/12/30/world/middleeast/yemen-sa...
[3] https://en.wikipedia.org/wiki/Strategic_Mutual_Defence_Agree...
Saudi Arabia has the East-West Pipeline [1] that takes ~7Mbpd (million barrels per day) of oil to Red Sea ports to avoid the Strait of Hormuz. They were already using it so there's not a lot of extra capacity they can get out. If we continue up the escalation ladder, the next big risk is that the Houthis close Bab al-Mandab, which is a not-quite-as-narrow but still vulnerable chokepoint to the Red Sea.
The UAE has the ADCOP (Abu Dhabi Cross Oil Pipeline) [2], which takes ~1.8Mbpd to the Gulf of Oman. This is beyond the Strait of Hormuz but not that far so technically is still vulnerable to drone attacks (in particular) from Iran if, again, we climb the escalation ladder.
The real issue is American security guarantees to GCC nations have been shown to be an illusion. Heck, the US can't protect their own bases in the region. Also, the US can't protect maritime traffic through the Strait. I mean this is in all seriousness: there is no military solution to this problem short of the use of nuclear weapons.
That means we are now in a situation where the US has to either split with Israel and offer Iran significantly better terms than they had before the war, likely including the lfiting of economic sanctions, or the US has to sit and watch the world plunge into recession and Asian countries in particular are going to burn. And who knows what a prolonged impasse will do to Europe, particularly come winter.
So far, the US seems to prefer letting the world burn rather thans plitting with Israel.
A protection racket ceases to be a protection racket if it no longer offers protection.
[1]: https://en.wikipedia.org/wiki/East%E2%80%93West_Crude_Oil_Pi...
[2]: https://en.wikipedia.org/wiki/Habshan%E2%80%93Fujairah_oil_p...
That is the plan: After decoupling the EU from Russia gas by provoking the Ukraine war, now it is time for the Asian countries to be cut off from gulf oil/gas, so the US fracking projects become economical and the entire "allied" countries depend on the US petrostate.
It is the only way to preserve US hegemony. Since this long term project is bipartisan, higher gas prices in the US don't matter before the midterm elections.
The only difference in foreign policy between Trump and Biden is that Trump is more risk taking and often spells out the real intentions, such as "we'll take the oil".
They won't sit still, though. Eventually, if this were tried, we'd see Chinese-flagged tankers buying passage rights from Iran and being escorted by PLAN ships.
No way does Commander TACO take that shot. The US interdiction threat in the gulf is empty, and everyone know it. Iran gets paid at the end of every story. The whole boondoggle has been a failure for the US in every analysis.
This would be a blunder by Beijing. It would involve trotting their ships through half a world of American and allied sensors, only to put an untested-in-blue-waters navy perilously far from nearest bases or support if anything goes wrong.
I’m not saying the likes of Xi, Putin or Trump couldn’t do it. But it would be an intelligence bonanza for the West, India, Japan and Taiwan.
I have the impression that somehow if the world will go into a recession, China will come out ahead. It looks like they either prepared for it or they have enough space to maneuver.
hamas being a proxy to iran, I don't get why people think iran as some "peace loving, innocent country"
well, are they?
raping/killing some *foreigners* and displaying their bodies as parade...
well that's not very "peace loving and innocent" is it?
How many civilians has Israel killed since oct 7? When is it enough?
Israel killed >50k civilians since October 7 between all the conflicts
Revenge is not a justification for destroying civilizations.
Israelis also rape, kill, and do other vile things to prisoners, innocent or guilty, who they imprison with or without charge.
Oh boy, let me tell you about October 7th. Attacks by Hamas, Hezbollah, Houthis, and Iran followed. Oh, and half a dozen other Palestinian groups were involved in 10/7 but they don't like to talk about that.
> How many civilians has Israel killed since oct 7? When is it enough?
Probably not too far off from how many Iran has killed in the same timeframe (of course, they are killing their own). Iran killed 30,000 of their own just this year.
And just so we're clear, Iran supported Hezbollah in Lebanon and Syria, and the Houthis in Yemen, both or whom are responsible for easily 10x as many deaths as Israel (total). The civil wars in Lebanon and Syria left millions dead, and the one in Yemen also resulted in hundreds of thousands dead.
well but do israelis parade their dead rape victims openly?
> When you make a ceasefire and then strike first
well that's between trump and iran? did netanyahu agree?
I agree that netanyahu is being a dick here: he should have focused on iran, instead of invading lebanon. That alone is a huge political/PR mistake
but... how's that ceasefire related? is israel a proxy of usa? does Trump control israel directly?
Ethically, the israel politicians goes at great length NOT to damage civilians: the walkie-talkie bomb is a classic example of "try to kill all the militants WITHOUT carpet bombing"
(though they failed to "kill all" with that scheme, and... well they did bomb a lot after that)
1) why is that an important distinction?
2) but since you asked, they do, western media just refuse to show it but all you need to do is follow a bunch of israeli instagram accounts and you'll see more than enough sooner rather than later
woah... big claims here! maybe you should post source?
Ah, this is where you draw the line?
One side openly tries to do maximum death on everyone including infants (eg. fire random missiles, intifada, and the oct 7th attack)
The other side at least tried their best NOT to attack back (expensive missile defense systems) or at least kill only the militants selectively (walkietalkie boomboom)
I mean, you should be ashamed of even comparing israel vs iran/hamas/etc
That would be israel with special focus on journalists and doctors
> The other side at least tried their best NOT to attack back
As idiotic as it is, Iran shown more restraint then Israel and USA against other countries. Internaly not, but ouyside yes. They played tit for tat.
like... firing missiles at UAE...? launching drone to dubai tower?
did India do anything to iran to get its ships fired upon?
blocking hormuz strait... that alone was enough to trigger global coalition -- though due to Trump's trade dick move to allies... no one sent troops...
if it's "tit for tat", then why does iran make so many un-related countries suffer (eg india?)
well simple: iran is the new pirate of 21st century. nothing more or less.
if anyone says "that's because US attacked", then if I got hit by a car, can I have my revenge on nearby pedestrians?
The so-called "Zion-don" won't be in office forever, despite what he seems to believe.
Look at the polling. The current U.S. stance on Iran and Israel is extremely unpopular. It's only a matter of time before a natural course correction occurs, and the voters' voice is heard, whether at the upcoming midterms or the next presidential election.
And let me tell you, if you think HN is bad, you better not check Zoomer social media.
> On 1 April, Israel bombed an Iranian consulate complex in Damascus, Syria, killing multiple senior Iranian officials.[28] In response, Iran and its Axis of Resistance allies seized the Israeli-linked ship MSC Aries and launched strikes inside Israel on 13 April.[6]
Not to mention, Israeli occupations in Syria, Lebanon, Gaza, and the West Bank. Iran is not the only bad actor.
And it's really important that you understand this was after 45 years of proxy warfare by the Islamic regime against Israel, which resulted in tens of thousands of Israeli dead. This was entirely instigated by the Islamic regime - Iran was friendly with Israel prior to the Islamic revolution. Israel did not pick the fight with Iran, Iran picked the fight with Israel and has maintained it for decades because it drives support for their regime - the holy war is great motivation for the cultists.
I assumed you were aware of the most widely publicized conflict in human history, but just in case you’re serious: https://en.wikipedia.org/wiki/October_7_attacks
https://israel-alma.org/special-report-for-years-iran-planne...
There was extensive planning for a multi front attack including Iran, Hamas and Hezbollah.
The story of this war is the previous idea in Israel that you could work out with an extremely religious enemy at the border as underneath their claiming to want to destroy you, they are rational.
After Hamas decided to go on a national suicide for no achievement except for a single day of an orgy of violence and the complete destruction of gaza, that view has changed.
This puts Hezbollah similar to Hamas, and their patron Iran ballistic and nuclear weapon program in a different light, and makes preemptive strikes and the complete destruction of the Iranian Axis (largely successful) as an important goal for Israel
Hezbollah is responsible for the deaths of nearly a million Lebanese and Syrians. They are much better at killing other Arabs than Israelis. They are a tool for Shia clerics and Iran, not a legitimate force for good in any way.
It's pretty convoluted logic to blame Israel for Iran attacking the UAE.
The Saudi crown prince wants Trump to continue the war still.
1: https://www.ndtv.com/world-news/us-israel-attack-iran-iran-i... 2: https://www.nytimes.com/2026/03/24/us/politics/saudi-prince-...
RealLifeLore has been doing a decent job covering it [1].
The broad summary is you have the Saudi-backed unity government, the Iranian-backed Houthis, who claim all of Yemen but practically want North Yemen, and the UAE-backed STC, who also claim all of Yemen but practically want South Yemen. Emiratis bring the Israelis to the party. The Iranians bring the Russians. The Saudis bring various international elements (I know less about them than the Houthis and STC).
[1] https://m.youtube.com/watch?v=IgD7zmJN3_A&pp=0gcJCVACo7VqN5t...
Stopped caring about anything he had to say after that, and I also then realized that there was a an entire genre of “person with no actual expertise reads Wikipedia articles and explains them with good lighting and high production quality.”
Comments here should be read as opinions, not as facts. I see it every time there is a subject I know deeply about, 90%+ of the comments are either factually incorrect or just bad opinions.
> The quick cuts and dazzling montages, as well as the dramatic shots of Harris absorbed by a document he’s unearthed, highlighting it suspensefully in tight close-ups, all lend credence to the often-excellent work he does. But it also makes it easy to mask his mistakes. And for someone who takes journalism to heart, his mistakes are big, leading to oversimplification and an occasional lapse in skepticism.
[...]
> In a video that garnered 8.5 million views and which Harris thumbnailed with the words “WE HAVE PROOF,” Harris explores the recent craze over UFO sightings—sorry, UAP sightings, meaning unexplained anomalous phenomena. In passing, he mentions Mick West, who has done excellent work debunking a lot of blurry footage of what is alleged to be high-tech spy drones or aliens.
> But the bulk of the video is spent leering at report after report—a total of 144 are being investigated by the U.S. government right now!—while original music amps up the mystery. The emphasis on evidence over context is key to Harris’ style: flood the space with visuals that keep your attention and elicit questions and only occasionally pull back to explain.
For what it's worth I watch his videos and he seems to touch on incredibly valuable topics I would never hear about otherwise, like [1].
i hope so, they have been one of the biggest sources of discord in the Middle East, funding civil wars in Libya, Sudan, Yemen, funding a coup in Egypt.
Kind of depressing thought actually.
I gotchu: https://youtu.be/-evIyrrjTTY ("This Land is Mine", 3 min)
[0]: https://www.slate.com/blogs/the_world_/2014/07/17/the_middle...
The Gulf countries now are in a far better condition than they were under the Ottomans (and than modern Turkey). "Stability" is what led the Ottoman Empire to devolve into a backwards, economically undeveloped society that was incapable of competing with the west.
Thank goodness our predecessors didn't think this way. They thought that through reason, hard word, and humanism they could overcome these things, and they did. No doubt there were plenty of naysayers.
What will we do with our turn?
I think your assessment of whatever the "specific condition" is, is wrong.
1) source, 1950: https://european-union.europa.eu/principles-countries-histor...
This part of the planet has been almost intractable since the age of Hammurabi - it is quite fractured without any current overarching unity or framework. There isn't a dominant religion (similar to Europe) or shared values. I could say almost meaningless things like "thought that through reason, hard word, and humanism they could overcome these things" which would make little of the hard truths of the long histories of the varied peoples and fractions of the area.
It would almost seem naive to say things like because we've solved some tough problems in the last century we can solve all problems.
I think you gloss over much and certainly give yourself a mightier than thou feeling with your "Thank goodness our predecessors didn't think this way".
I too hope for peaceful resolution and stability but fall back to the historic record of success especially in a place that is constantly, recently and historically decimated by war among fiefdoms.
In fact it was wars with a strong religious element between Protestant and catholic factions that tore Europe apart for centuries afterwards
The reason is fractured is because of the inherent tribalism within the cultures of the region. Strip away the tribalism (Oman, Qatar, UAE to an extent), concentrate the people near a few cities (Egypt), or provide them a unifying overarching culture (Iran, Turkey), and you get some success. In fact, the early Islamic empires were heavily mired in infighting even though they were "unified" under the Caliphate, in spite of the Prophet's calls for the "Ummah" (One Islamic Nation). I would even argue that Islam's biggest contribution to the region was in providing a specific administrative framework with which to shed the tribal infighting and unite culturally similar but disparate peoples together. It's also why Israel succeeded as a nation with its European flavor of nation-state identity.
An Israeli intelligence officer perhaps correctly attributed it to the past culture of water scarcity and needing to protect your water sources. That is, in the desert, there are only so many sources of water, and if someone steals it away from you, you simply die. So that created a culture of inherent suspicion of outsiders and people outside the clan, even though they all share the same customs and culture.
I guess Al-Qaeda and Isis are also there.
"I and my brother against my cousin, and I and my cousin against the stranger."
https://www.state.gov/releases/office-of-the-legal-adviser/2...
It's funnier than that. The justification is "self-defense of its [the USA's] Israeli ally".
"Israel sent "Iron Dome" system and troops to UAE" - https://www.axios.com/2026/04/26/israel-iron-dome-uae
Also...their central bank governor quietly asked the US Treasury for a dollar swap line...Combined with the Pakistan $3.5B recall and OPEC exit, that is three coordinated moves of a cashflow stressed country...and of course the US is being asked to extend taxpayer backed dollar credit to the same royal family that bought 49% of Trump's crypto company four days before inauguration...
https://fortune.com/2026/04/19/uae-talks-us-possible-financi...
So no, they most definitely can have their cake and eat it, and have done so for over two decades.
They also turn a blind eye to plenty of other things that go against conservative islamic values: alcohol is served onboard, gay flight attendants are employed, etc. So it’s surprising to me that they aren’t a bit more tolerant here.
It may be confusing to others but it's ultimately your choice.
The issue is those liquid assets are US Treasuries and US public market equities (mag7 etc.).
They don't really want to sell them, and they also know that the US really doesn't want them to sell them - the last thing Trump wants heading into the midterms is an S&P500 bear market and 10y treasuries heading back to 5+%.
So they ask for a swap line and they're negotiating from a position of strength, the US doesn't have much of a choice but to give them as much as they need and damn the consequences
I'd add the US to that as well. Both the UAE and Israel are highly (practically solely) dependent on US for their military tech and supplies.
Don't Egypt and Israel hate each other though? Could UAE feasibly align with both?
So yes, the UAE could align with both.
This is true, but Emiratis are a notable exception. The UAE may be the only Arab country where Jews are not only allowed to live, but can do so safely without fearing either their neighbors or their government.
For example, last year when a rabbi was murdered, the Emirati government reacted forcefully and made a point to sentence the perpetrators to death. Note, the perpetrators were not Emiratis.
> The modern Egyptian state is oriented toward close partnership with the US, and a large part of that was peace with Israel post '73.
While also true, the relationship between Israel and Egypt has been tense lately.
They are at peace, and the border is stable. And economic integration is tightening, for example with the recent $35B gas deal [1]. So it's plausible that UAE could align with both, as you say.
But at the same time, it's just as plausible that this alignment will become increasingly complicated for geopolitical reasons. As Israel grows stronger in the region, Egypt seems to have adopted a strategy of indirectly undermining them.
For example, Egypt's handling of the Gaza war has indicated that they were playing a double game - openly containing Hamas, while covertly allowing them to grow stronger. When the IDF captured Rafah in 2024, they uncovered massive smuggling tunnels under the Egypt-Gaza border, which could not possibly have been unknown to Egypt.
Sisi is also known for having cracked down on the Muslim Brotherhood domestically, as they were his primary political rival. But externally, he has shown a willingness to support them as a tool to weaken his rivals, including Israel. This is a dangerous game which could easily backfire.
One more example: just this week Egypt is conducting a live fire military exercise 100m from the Israel border - a deliberate decision that is escalating tensions. [2]
[1] https://www.egyptindependent.com/all-you-need-to-know-about-...
[2] https://defencesecurityasia.com/en/egypt-live-fire-drills-is...
What about the military exercise though? Al-Jazeera is eagerly covering it, but it is in fact happening...
I'm thinking that two things can be true at once - Egypt sees Israel as a "soft rival" and will undermine it when it can, without risking the peace itself; and Qatar is actively trying to put a wedge between them. No?
(thanks for the thoughtful discussion).
It’s actually surprising it’s achievable for so long but in the long term doesn’t feel stable given the direction things are headed
As far as stability, I don't know. My view is that Arab democracies are unstable because they will elect Islamists. Dictatorship/monarchy has proven far more stable. Syria is trying to buck the trend; we'll see how it goes.
All of the Gulf monarchies as well as Jordan are essentially western creations that were created as states mostly by the British and then heavily reinforced by the US from the 70s onwards
why does that imply instability?
ennahada (tunisia), pks (indonesia), jui (pakistan) are all examples of islamist parties that have compromised or reached across the aisle at various points just off the top of my head.
besides, isn't the point of democracy to allow people to be led by those who represent their principles? if they are in power, why should the majority expect their elected leaders to compromise those principles?
Would love to read more on this. Naïvely, I shared OP’s view of Islamist parties’ intransigence. (Note to third parties: Islamist != Islamic majority or even Islamic parties, and certainly separate from Arab parties.)
> isn't the point of democracy to allow people to be led by those who represent their principles?
Yes. But nothing says democracies are fundamentally stable. It absolutely follows that intolerant populations can systematically elect intolerant leaders who then cause instability.
and secular/socialist/monarchic dictatorships have arguably worse effects on their neighbors and citizens - e.g. Saddam, Assad, Nasser, MBZ in UAE, MBS
I think the broader point is that a democracy is unstable when the electorate just votes for their favourite warlord / cleric, who promptly ends / rigs any further elections.
In the Middle East, there appears to be a pattern of electorates voting for / staging a revolution in favour of Islamists, which either leads to a terrible Islamist regime, or leads to an elite coup, which of course destroys the democracy in the process. Worst case scenario all of this happens at once in different places, and you get a terrible civil war.
Democracy is great, but it requires an electorate that actually wants to sustain and retain a democracy. Those appear to be few and far in between.
that pattern is hardly unique to middle east/islamists though. look at central/south america. guatemala, chile, brazil etc all had democracies overthrown by "elite" coups.
like almost every instance in the middle east, there is actually a common denominator between these coups... resistance to the US-led order magically seems to invite instability.
> resistance to the US-led order magically seems to invite instability
Or perhaps 'resistance' is an awfully popular rallying cry for demagogues who bring instability, and the US is just the hegemon du jour. "It's the US' fault your crops are wilting! And international capital! And immigrants! And, oh, I don't know, the gays, why not. Rise up for El Generalissimo! Enlist your sons in the blood struggle, that will definitely improve things!" /s
Much sexier to be a revolutionary fighting shadowy foreign forces than to actually fix any of your own problems. No, no, tomorrow's problems will be America's fault too.
you said
> Arab democracies are unstable because they will elect Islamists.
whereas my claim is that governments (democracies or not) that run afoul of their local hegemon tend to have a short shelf life. this is not unique to US hegemony.
see: Brezhnev doctrine (USSR), or the canonical example of Athens and Melos from Peloponnesian war
> Rise up for El Generalissimo! Enlist your sons in the blood struggle, that will definitely improve things!" /s Much sexier to be a revolutionary fighting shadowy foreign forces than to actually fix any of your own problems. No, no, tomorrow's problems will be America's fault too.
I'm sorry, you seem triggered by this discussion, it doesn't seem productive to continue on my end.
Realism has more way explanatory power in geopolitics than idealism. Idealist explanations are typically incoherent (e.g. above thread).
I suppose shall have to make do without 101-level instruction in Chomskyian anti-Imperialism, woven through with whataboutism and international conspiracies.
> whereas my claim is that governments (democracies or not) that run afoul of their local hegemon tend to have a short shelf life. this is not unique to US hegemony.
Wow, big if true. Someone let Iran know.
How many trillions of dollars and gallons of blood did the US expend to make Afghanistan non-Taliban, or Vietnam non-Communist? And who rules Afghanistan and Vietnam today? You mention the Brezhnev doctrine, and yet literally not one of these countries is Russian-aligned today. The Russian invasion of Afghanistan failed just as hard as the British and American ones, all at the height of those respective countries' powers. Not very powerful, these alleged hegemons.
My overall point is that the Middle East (and Latin America, etc) has many local issues (e.g. corruption, misgovernance, sectarianism, organised crime), and an unhelpful habit of blaming some ill-defined global hegemony for misfortunes that are readily explicable as the consequences of these local phenomena. The US is no innocent lamb, but it does no service to the people of any of these regions to pretend that another hundred years of anti-Imperialist rhetoric will somehow bring benefits that the previous hundred years did not.
In these countries, this brand of tired anti-Imperialism is a figleaf for authoritarians. In the West, it is masturbatory politics for a certain type of narcissistic Westerner with a saviour complex, who fundamentally believes only Westerners have agency in the world, and everyone else are just motes of dust floating in the West's shadow. It's this confluence that results in absolute travesties like Chomsky supporting the Khmer Rouge, a far greater evil than all the worst allegations against America stacked together.
If you want to help the Middle East, get involved in civil society building efforts that help bridge the gap between sectarian communities; support charitable and poverty relief efforts that are not affiliated to the Muslim Brotherhood; get involved in civil rights advocacy on behalf of the oppressed in the Middle East (women, LGBT communities, religious and ethnic minorities, the list goes on); partake in initiatives aimed at tackling corruption, organised crime, etc. Or at the very least encourage and support the people who do these things, rather than regurgitating half-remembered anti-Imperialist tropes from your polsci 101 class, as though that were a contribution of any value whatsoever.
The one thing that will absolutely not help them, at all, is more meandering, false narratives about how they have no agency in the face of shadowy global hegemons, and how should just lie down and wait impassively for some sort of new, more just world to be given to them by their Western betters.
Chomsky never backed the Khmer rouge, he questioned some of the claims and western focus on the Khmer rouge, which was ignoring US culpability. He also never denied that the Khmer rouge were committing atrocities.
Was he wrong? Yes, at least in specific instances. But he was never outright supportive of the Khmer rouge. This is very old propaganda.
> The law imposes the death penalty on persons convicted of fatal terrorist attacks. In military courts, the death penalty is the "default"; only Palestinians are tried. In civilian courts, both Israelis and Palestinians are tried, but the law applies only to those who "'intentionally cause the death of a person with the aim of denying the existence of the State of Israel'—a definition designed to exclude Jewish terrorists". It therefore "effectively enshrines capital punishment for Palestinians alone".
And to preempt the "but that's Palestinians, not Israeli Arabs" bit, nope:
https://en.wikipedia.org/wiki/Terms_for_Palestinian_citizens...
https://en.wikipedia.org/wiki/Arab_citizens_of_Israel lists all sorts of other smaller inequities:
> In 2005, the Follow-Up Committee for Arab Education said that the Israeli government spent an average of $192 a year on Arab students compared to $1,100 for Jewish students.
> In the 2002 budget, Israel's health ministry allocated Arab communities less than 1% of its 277 m-shekel (£35m) budget (1.6 m shekels {£200,000}) to develop healthcare facilities.
Nevertheless, you should always ask yourselves: would you prefer being an gay Arab in Tel Aviv or a gay Jew in Gaza?
A decent number of Israeli Jews have to do that as well, since Israel recognizes Jewish marriages only under orthodox rabbis. Some Israeli Jews are not even considered Jews under strict orthodox rules.
They don't have to if they are one of the approved religions. That's a restriction on religious freedom.
> since Israel recognizes Jewish marriages only under orthodox rabbis
I don't get how is this evidence of religious freedom.
marriage = civil union + religion
Of course everyone should be free to call their civil union whatever they like and the government shouldn’t differentiate at all if your civil union has a religious blessing as well. Just because some governments appropriated the religious terminology and/or the civil union developed from a union sanctioned by a priest doesn’t mean that a government needs to guarantee everyone a religious marriage. To the contrary. Everyone should be able (and required) to register the civil union if they want to be treated as married by the state. I’m not here to defend the status quo of all the laws in Israel - I’m here to emphasize that your reading of the laws about civil unions and marriages in incomplete and the standards you apply to Israel are a hundred times higher than those you seem to apply to any other country. Honi soit qui mal y pense.
Yeah, we tried "separate but equal" here too.
> On the other hand, does Hamas recognise a Jewish marriage?
Being the good guys is about more than being "second worst".
> Being the good guys is about more than being "second worst".
If you cannot think about any group that’s not as bad as Hamas, but worse than Israel, I‘m happy to help… just ask!
That's great.
That's not Israel's setup.
> If you cannot think about any group that’s not as bad as Hamas, but worse than Israel, I‘m happy to help… just ask!
"Others are worse" is not the moral standard one should aspire to, either.
Edit: just check it, it’s true. “You can choose to have EITHER a religious ceremony OR a civil ceremony if you’re getting married.” [0]
So since we’ve established that it’s a common practice in some countries that marriages can be either religious or civil, but still equal before the law, could you please elaborate how exactly civil unions in Israel are discriminated against compared to religious marriages?
[0] https://www.gov.uk/marriages-civil-partnerships/plan-your-ce...
No one gets (civil) married, everyone can get a civil union: Fine!
Certain people can get (civil) married, others get a civil union: Not fine.
This is very simple. "Separate, but equal" never works.
Also: this kind of discrimination - if there is any - is targeting Arabic and Non-Arabic Israelis in the exact same way. So I don’t fully understand why you pointed this out as an Act of discrimination against Arabs.
You, in your own comments, acknowledged they are similar, not identical.
For starters, you have to go abroad for one. https://en.wikipedia.org/wiki/Recognition_of_civil_marriage_...
They also aren't valid abroad sometimes.
"In 2017, the Florida Third District Court of Appeal held that although Israel recognizes 'reputed spouses' as a legal union, the union is not a marriage under Israeli law, and therefore, Florida law does not recognize the relationship as a marriage."
And some people (an atheist marrying a religious person, for example) can't get one at all within Israel.
"In 2010, Israel passed the Civil Union Law for Citizens with no Religious Affiliation, 2010, allowing a couple to form a civil union in Israel if they are both registered as officially not belonging to any religion."
> Also: this kind of discrimination - if there is any - is targeting Arabic and Non-Arabic Israelis in the exact same way.
"It's fine, we discriminate against other minorities!" is not the argument you imagine it to be.
> "Others are worse" is not the moral standard one should aspire to, either.
OP stated that all Arabs hate Israel. This opens up the debate if living in an Arabic ethnofascist state such as Gaza or a Muslim fundamentalist state like Saudi Arabia would be the better choice for those 2 million Arabs. So yes, I think being the lesser of two evils is already the answer to that binary choice.
Some cultures go thousands of years without ever forming civilizations that escape barbarism. Slavs in particular seem especially unable to find their way out of tyranny, for literally thousands of years.
Sometimes you call a spade a spade. Essences exist. Copes against it like “intersectionality” have been thoroughly rejected by the body politic and that’s why you see zoomer and gen alpha talking like they’re all from 4chan - because 4chan was the only place where essentialism was not only accepted but encouraged.
This bodes well for the future, you say?
At some points people need to wonder why.
Could you imagine me making the same argument with other historically 'unwanted' groups, like for example Black people or Jews? If these populations keeep getting kicked out and marginalised through millennia, surely you have to start wondering why.
It’s probably more anti-Semitic to lie and say “jews don’t control Hollywood” rather than try to explain correctly why they do. Yet, most people don’t even want to try to explain historical factors.
https://en.wikipedia.org/wiki/Rafah_Border_Crossing
> The Rafah crossing was opened by Israel after the 1979 peace treaty and remained under Israeli control until 2005...
> Under a 2007 agreement between Egypt and Israel, Egypt controls the crossing but imports through the Rafah crossing require Israeli approval.
Egypt said 'HELL NO', first, because they don't want to deal with Palestinians (both political and economic nightmare), and second because it would have been viewed as ceding to Israelis and helping them cleanse Gaza, which would be highly unpopular among their population.
Yeah, that's not "wide open". Israel would absolutely be happy with a one-way exit gate.
Bottom line, Egyptians are not interested in supporting millions of refugees inside their border. So the border stays closed to mass immigration.
Also true: If Egypt opened the border and Israel objected, Israel would take swift military action.
But NONE of the Arab countries want to help Gaza people really.
This is directly contradicted by Israel's actions in the Gaza War. Egyptian control of the crossing was not enough, so they took it. https://www.bloomberg.com/news/articles/2024-05-07/israel-ra...
I do wonder if you all can hear yourself: a lot of subtle implications of genetic defects in Palestinians' character and selective understanding of geopolitics in the region, or just basic societal dynamics.
I invited another commenter to transpose their reasoning to groups it's less popular to openly discriminate, I'd suggest you do the same.
With a few notable exceptions... A Palestinian-American murdered Bobby Kennedy for being too supportive of Israel.
thats not something israel would be excited about
The Palestinians didn't help their cause with Yasser Arafat's Black September uprising in Jordan. Then they topped that up with strong support for Saddam when he invaded Kuwait. Like the ones in Kuwait were literally betraying Kuwaitis to the Iraqi troops.
Oh, and did I forget Lebanon? They literally fomented the civil war.
https://www.thoughtco.com/black-september-jordanian-plo-civi...
https://www.historiascripta.org/post-ww2/the-palestinians-of...
I strongly suspect the average American has absolutely zero sense of how much foreign aid we give Egypt. That's not to contradict your point directly, just that it isn't a very salient part of American politics (unlike Israeli foreign aid).
I feel like Israeli aid, while vastly more salient than it used to be, is still mostly salient as a left-of-center wedge issue, otherwise being about as salient as your average major foreign policy issue - ranking just under the least salient domestic policy issue, which ranks just under the most minor personal quality of any candidate, which ranks under the current state of the economy, which ranks under the current perceived state of the economy. Wow, that's way too many times to use "salient" in one sentence.
And for the record, I'm not arguing about how much people should care, just how much they do.
Remember that 20% of the Israeli population is Arab.
> Death to Arabs" or "Death to the Arabs" (Israeli Hebrew: מָוֶת לָעֲרָבִים, romanized: Mávet la'Aravím) is an anti-Arab slogan originating in Israel.
Almost all of the complaints I heard while I was in Egypt were about corruption and lack of opportunity. It was more frustration with rampant nepotism/cronyism and less a desire for liberalism. From the ground, it appeared to be driven by economic forces and not political ideology.
In fact, many Egyptian men that I spoke to made the argument for the continued oppression of women (e.g. the full burqa and absence from work). In general, the populace was decidedly anti-liberal.
The election of the Muslim Brotherhood happened after I left the country, but it was no surprise to me at all. The fact that they attempted to change the constitution so quickly after their victory was unwise, and the subsequent coup by the West was just as unsurprising.
[Ω] https://en.wikipedia.org/wiki/Pakistan_and_weapons_of_mass_d...
So there's that.
They bank rolled Pakistan's not party to the treaty? Sorry I can't parse this sentence.
Did you munge two sentences i.e. Saudi Arabia bankrolled Pakistan's nuclear weapons, and also Pakistan is not party to the treaty?
I added quotes, it should say that Pakistan's weapons program is one that is outside the Nuclear Non-Proliferation Treaty as Pakistan is not a party to it.
Its a pakistani submarine, with exclusive saudi-royalty members on the bridge.
We should build a city that is a statistical bunker- basically a line, for the edge case of jihadist insurgents getting the forbidden eggs in the cake.
Already aligned with the KSA [0]
> India
Already aligned with the UAE [1]
---
IMO the Pakistan aspect is overstated. This is a reversion to the norm of KSA-Pakistan relations before Imran Khan completely destroyed it by fully aligning behind Qatar and Turkiye when both were competing against KSA.
[0] - https://www.aljazeera.com/news/2026/1/5/egypt-says-it-shares...
[1] - https://thediplomat.com/2026/01/india-uae-embark-on-a-strate...
It’s complicated [1]. My low-key guess is cutting off Pakistan was intended to send a message to Cairo.
> Already aligned with the UAE
Aligning. To my understanding there isn’t a treaty yet.
> the Pakistan aspect is overstated
Pakistan isn’t the cause. It’s the canary. These moves happening in quick succession (strategically, over the last year, and tactically, in the timing of these announcements) speaks to previous assumptions being fair to be questioned.
[1] https://www.washingtoninstitute.org/policy-analysis/egypts-t...
Abu Dhabi and Cairo have been misaligned for years since the Sudan Civil War began (UAE backs the RSF and KSA+Egypt back the Army) as well as the UAE backing Abiy Ahmed in Ethiopia at the expense of their traditional partner KSA.
> To my understanding there isn’t a treaty yet.
This is as close as it will get. New Delhi doesn't "sign" defense treaties unless pushed to a corner, because it reduces maneuverability.
The Pakistan-KSA alignment was already cooking after IK was overthrown. I think I mentioned it before on HN (need to find the post I wrote) but given the primacy Pakistan has had in US-Iran negotiations well before the war as well the PRC's increasingly miffed attitude at Pakistan following the CPEC attacks, the US most likely brokered a back-room realignment between PK and KSA.
A neutral-to-ambivalent India with a pro-America Pakistan is better for the US than a completely aligned India with a pro-China Pakistan.
TODO: citations
India is actually the true neutral major power. I don't really count Switzerland because it was obvious it would align with the EU/NATO/US axis when things got hot, as it did in the context of Ukraine-Russia.
This is the common problem for cartels: everyone has inventive to cheat on the deals made. By selling a little more than your share you get more money, while because everyone else is following along the prices are higher. (see also prisoners dilemma)
As long as fossil fuels remain one of the cheapest easiest to scale ways to make power, there’s a similar incentive to cheat. If everyone else cuts emissions and you don’t, your margins are higher and you can undercut them. Global reductions require an all-cooperate scenario.
Developing nations have the strongest incentive to cheat since they need those margins to catch up.
Which is why I think little progress will be made until other sources are actually cheaper. Until then it’s beyond us politically. We can’t get all nations across the world to simultaneously cooperate at that scale.
This isn't really how it works, since greenhouse gas output is pretty much corellated to income level, and even that's an understatement, since people in rich countries buy stuff made in poor countries, and manufacturing causes emissions.
The real problem is carbon credits - rich countries can both pollute, and absolve themselves of moral responsibility by buying carbon credits - and said carbon credits are fungible, so countries' compete for the lowest selling price.
So what ends up happening is poor countries sell carbon credits by offering programs and promises, but can't/won't bear the cost, as that would mean they'd have to raise credit prices, and buyers would go elsewhere.
It's a system designed to encourage cheating while absolving moral responsibility.
IMO economics always wins. You're never going to see an all-cooperate scenario.
You will see an all-compete scenario, so constantly reducing costs for alternatives is key but you also have to find a way to ensure that the producers can win economically too. This is the conundrum.
If solar panels get cheap enough to create high demand, then that demand has to carry through the process of manufacturing, installing and maintenance. Every time I read that solar has gotten even cheaper, I start calling for quotes to install them at my house and the prices are borderline obscene. Same for geothermal last time I needed to update my HVAC.
I want solar and geothermal to work but the economics are a challenge.
All this to say, you calling a local company and getting quotes captures your price but that’s not quite the same as the global price.
https://esgnews.com/us-imposes-solar-tariffs-up-to-123-on-im...
EDIT: I was wrong - tariffs on eg Chinese made solar panels are more like 65% right now - there’s multiple tariffs. https://pv-magazine-usa.com/2025/02/04/u-s-raises-solar-poly...
Point being the US government is making them expensive for US consumers but that’s not true for global markets where they want to have energy independence. Solar is in fact very cheap these days.
The equipment is nearly free compared to the labor to install it. At least the last time I checked. I could do my own DIY system for about 1/4th the cost of one "professionally" installed - and I use the scare quotes for good reason. Most of the installation companies for residential solar exist to sell financing, the solar bit is just an unfortunate tertiary (behind grifting on the green energy credits/tax rebates) concern for most of them.
Panels costing an extra 65% is a rounding error for me. I'd need a whole lot more real estate to put them on for it to become a significant fraction of the total system cost.
And that might even STILL be okay if the quality of engineering and workmanship was decent and available. I'd pay the going rate tomorrow if I could find a highly competent electrician/company to do the over-engineered setup I want today. I'm not interested in saving money - I could care less if it ever pencils out. I'm interested in having a system that can survive a lengthy grid outage situation that is fully redundant and properly engineered to industrial level standards. This is effectively impossible in the US, but friends in other areas of the world have had similar setups installed for years.
A plug in solar panel and microinverter at the local supermarket is about €1k/kW. 9kW of solar for €9k/£8k/$10.5k to power an average US car and an average US house.
Avearge US car does 13,000 miles a year needs about 4,500kWh, so €4500
An average US home uses 11kWh a day, or 4,000 kWh a year, that would be another €4000
US electric price is an average 17c per kWh. That's a 15% ROI.
I suspect the costs your quoting are mainly things like scaffolding and labour, and that's not going to get cheaper.
The panels themselves - ignoring inverter, install, etc, are $100 for a 400W panel [0]. To generate a whopping 16,000kWh a year -- 70% more than the average -- you'd need to spend $4k on panels. Even if panels were free, your quotes would still be obscene because tradesmen charge obscene amounts (or rather roofing work is just expensive)
[0] https://www.solartradesales.co.uk/aiko-neostar-2s-460w-n-typ...
Typo, 1000kWh from 1kW of solar panel.
I got my 4x 455W panels for 70€ each from BayWa (random vendor in Germany), plus delivery. Microinverter ~200€. Aluminium etc for installation ~400€ or so. I installed them together with a friend. Total cost ~900€ or so. At 30ct/kWh in Germany, break even is in 3 years. Would be earlier if I had a better roof to put them on, mine has some shadow.
https://www.eia.gov/energyexplained/use-of-energy/electricit...
Furthermore, it also reduces the drain on the (often very fragile, for thirld world countries) foreign reserves, especially relevant when the oil prices fluctuate wildly.
If your solar panels are old and you don't have money to replace them, you get slightly less electricity. If you are out of gasoline/diesel and you have no money to buy it, you have a big, big, problem.
Unless there is some hidden cybersecurity risk of them shutting off panels remotely?
And corruption is one of those annoying problems that dont go away easy
It's political will not economics that keeps us addicted to fossil fuels. Nobody gets rich from solar panels. You build them. They produce power. Oil wells like any mine are huge wealth concentrators. That's the real problem.
If anything, a bunch of countries (particularly those who are net oil importers) are re-evaluting their energy dependence given that the compact that the US will guarantee maritime transport has essentially been broken.
[1]: https://www.iea.org/reports/projected-costs-of-generating-el...
In March 2020 at the start of the pandemic, it looked like the world economy would come to a standstill. Oil futures went into extreme contango, briefly going negative as nobody was taking delivery. So in April 2020 the Trump administration went and browbeat all the OPEC+ members to massively slash production [1][2][3]. Art of the deal. This culminated in a 2 year deal to cut production by initially 9.7Mbpd (million barrels per day) and then reducing over the 2 year period [4]. This was a disaster.
For context, OPEC does this sort of thing by themselves without any kind of prompting when necessary. They meet every 3 months and project demand and then set production targets to maintain a floor and ceiling for oil prices. Individual members can and do cheat, producing more than their allocation and lying about production cuts but all in all the system mostly works.
Trump loses the election. Biden comes in and demand rockets back in 2021 and crude oil prices skyrocket, as do gas prices as a result. The Biden admin quietly went to MBS to ask him to end the deal. He refused. You can overlay this 2 year deal with global inflation and it pretty much matches up exactly.
So Republicans blamed inflation on Biden even though it was a Trump deal. The Democrats didn't abandon US foreign policy and publicly hang out an ally to dry so instead just blamed greedy oil companies for price gouging. And nobody at all mentioned the 2020 OPEC deal. Not in mainstream politics anyway.
That was a 10% cut in global supply and look what it did to inflation. Closing the Strait cuts global supply by 20%. In 1973 with the Arab oil embargo, the major recessionary effects took 6 months to really hit. This is a ticking time bomb that will likely explode leading into the midterms.
Anyway, the point is OPEC+ did that.
[1]: https://www.reuters.com/article/economy/special-report-trump...
[2]: https://www.reuters.com/article/business/opec-russia-approve...
[3]: https://www.reuters.com/business/energy/opec-would-miss-frie...
[4]: https://www.reuters.com/article/us-global-oil-saudi-cuts-idU...
[4]:
There are a number of elements that go into gas prices like additives, refining margin (called the "crack spread") and distribution but crude oil prices are a huge part of that. Also, like anything demand plays a huge role and that means the market's expectation for future supply.
So if the other side overpumped by x1 amount then you pump an extra x1 the next turn / year (maybe multiplied some reference production factor as they don't all have the same absolute limits).
The real world is much more complex. OPEC is a multi-party game, for starters. For another thing, there are cascades of social/political problems that get in the way of optimal strategy at the level of nations. I.e. that only works if politicians are more interested in solving problems than controlling narratives or maintaining power. Unfortunately, an ineffective leader can be sustained by controlling the narrative, while an effective leader can be destroyed by lack of control over the narrative. And one of the best ways to control a narrative (especially if you aren't a very good leader to begin with) is to create so much chaos that it distracts from your shortcomings, and blame the chaos on enemies.
https://factcheck.afp.com/sheikh-mohammed-did-not-say-great-...
It would be quite out of character for him to say this
However just because they are trying doesn't mean they will succeed. Their attempts at diversification still seem very reliant on oil money, and its far from clear that they will eventually be able to stand on their own.
So U.S. equities will be sold for pennies?
Are you predicting a U.S. stock market crash bigger than the Great Depression, when oil runs out?
When you lose your only bargaining chip(oil), things start to look dicey.
Could be a sell off if it isn't managed...measured buy-backs scaled over a timeline that maybe offers them an opportunity to invest in other commodities may be preferable.
Actually now that I think about it...I should probably keep a pulse on ME holdings about 2 or so decades from now
Of course who knows how to end of oil will happen. Best case is a switch to renewables (or fission...) in which case there will be more than enough expensive oil for a few rich people to drive expensive gas cars if they want to. There are lots of other options as well, only time will tell.
(and a nod here to the replies who suggest this was never actually said)
There are current Land Rovers with market positioning suggesting they're "better" than Mercedes, and there are historic Land Rovers which were arguably not much better than camels.
Camels are cool still.
This is an initial but big crack in shaking up global oil markets in a way that meaningfully shifts global power dynamics.
There are financializing vampires in charge and their only goal is to short term bleed the country dry. "Investors" are allergic to investing.
We’re rolling back CAFE standards too.
CAFE is a great example of a well-meaning regulation failing because the people who developed and approved it didn’t think through the obvious consequences.
Allowing light trucks to turn the SUVs and replace sedans is not an "unintended consequence"--it's either stupidity or graft (not xor).
There are several laws that are "wtf -- is this the best we can do?"
Separately I've heard emissions laws blamed for large sedans losing to small SUVs and trucks due to double standards, but I doubt it would've made a difference, even though I personally prefer large sedans.
You can see this if you go to https://shop.ford.com/showroom/ and select sedan or hatchback in the left filters. No results.
We aren't mindless zombies buying whatever we see on TV. I'm old enough to remember when Japanese small cars practically took over the market in the 70s and 80s due to gas price shocks. It can happen again.
I just bought a (small, hybrid) truck because I need to do some truck stuff. I 100% would have bought an electric if the market produced one with comparable capability and competitive price, but we're not there yet, and I don't have Rivian money (yet! lol maybe someday).
My point being: there is still a huge demand for trucks from both a capability and culture standpoint, and very little supply of a cost-comparable product that doesn't take gas or diesel. Rivian is around double what most people want to pay, and the F150 Lightning was marketed poorly and had bad towing/hauling range compared to gas/diesel equivalents.
I'm not here to defend "truck culture" but I do believe that if you offer people a better product, they will figure it out and buy it. An electric truck with 400+ miles of towing range, an onboard 2kW+ inverter, 500 ft-lbs of torque, and fast charging for the same price as a comparable gas F150 will sell. Unfortunately the battery energy density and EV supply chain economies of scale aren't there yet in North America.
U u uThe problem is those vehicles don’t exist, because the manufacturers only want to build the high margin gas guzzlers.
Look at fuel economy of US made vehicles vs those in Europe. It’s beyond a joke.
You’ve never driven a BYD because your government blocks them. You’ve also never driven a fuel efficient car because they hardly exist in the US
But we are. I don't want to turn this into a political slap fight but it became apparent to me the extent in which people are swayed by advertising when I read an article that talked about how one party in the US was concerned that the other was going to win an important seat becase the other party had done a recent spending surge on ads in last few days before election day and they were concerned that they couldn't match it.
That article right there forever changed my view of the average person on the street. In a highly polarized campaign and political environment with months to years of knowing who the candidates and policies are and they can still be swayed by millions in TV and radio ads? Like it sounds like these people could literally be on their way to vote for a candidate and then switch their mind at the last second because they hear an ad on the radio as they're pulling into the polling station.
That's absurd -- but it's real.
People are completely enthralled by advertisements to the point where they'll buy a stupid truck that they can't fit anywhere, that they need a ladder to climb into, that has terrible sight lines, simply because advertising tells them to.
(I would support a Constitutional amendment to restrict campaign contributions and effectively overturn the Citizens United v. FEC decision.)
They seem like mutually exclusive claims, to me. Am I missing something?
It sounds to me like you're confusing the magnitude of advertising spending with effectiveness of advertising techniques.
Some people have found more effective ways to advertise to people, we know all this, it isn't uncharted conversation territory. We all know about micro-targetting based on personalized data, dominating certain niche mediums like AM radio to target people when they're driving and coordinated pushes with people in industry.
The point is that advertising works. It works disconcertingly well.
This is why people buy stupidly impractical automobiles that they don't need.
Advertised products will sell more, but only to a certain point. Like someone who wants an SUV and knows nothing else might buy the one from Chevy instead of Mitsubishi because of advertising.
Taxes. Social Security.
The list is gigantic. Your claim could not be more false.
Larger vehicles are more comfortable, safe, and practical (for anyone who doesn't need to worry about parking issues). It doesn't take advertising to convince consumers about that, it's just reality.
Ditto with the Sentra and the Versa.
This is my point exactly.
I'm pretty sure it's not, because physics. A tank is safer than a bike for the poilot, when there is a collision. This data is a little muddled, but follows common sense.
Large SUVs and Pickups: These vehicles have the lowest occupant fatality rates, averaging 14 deaths per million registered vehicles for SUVs compared to 48 per million for sedans. Large luxury SUVs often register statistically zero deaths in specific three-year studies.
https://www.iihs.org/ratings/driver-death-rates-by-make-and-...
The profit margins on larger trucks are higher precisely because that's what consumers want. No one is forcing them to buy those vehicles.
The Maverick is quite sizable compared to the original Ford Ranger too, which was still bigger than the regular Japanese trucks that were all over the US after oil skyrocketed the first time:
Tall grilles are a purely aesthetic choice. We could create safety standards for pedestrian impacts and end this inane trend. And still drive trucks!
America is already fucked, given how awful its urban sprawl is. Trucks used for commuting and not haulage just makes it double fucked.
It was not an oversight. It was corruption.
I am familiar with the EU situation. The carbon tax you would have needed to achieve the effect of fleet emission standards would have been political suicide.
And that is not just psychological. People who buy used cars and drive their cars until they fall apart are well correlated with people who can't afford high carbon tax. Buyers of new cars are the people who can. Carbon Tax would mean massive redistribution of the money raised. Yet another political mine field.
There's a trend toward advantaging entrenched interests to the detriment of the overall economy and interests of the population.
A 2025 study showing that it did.
The last refinery to be built in the US opened in the 1970s. Since then, refineries have closed. None of the owners of refineries will sell them because of SuperFund legislation. It is the same reason that when a gas station is sold, the fuel tanks are dug up and replaced. This way, there's no way to claim that the previous owner left hazardous material to be cleaned up. SuperFund laws say that every previous owner is liable for the cost of cleanup. It doesn't matter how long ago the property was sold.
The ships passing through the straight now are also paying Iran in RMB and crypto.
The petrodollar is the objective.
This isn't over any time soon
Legislation isn't going to work. Economics isn't going to work. War - which cuts off the flow of petroleum because nobody is willing to risk their life for oil - will work very quickly. Nothing quite like a shortage to spur innovation.
Renewables and EVs are a capital-intensive industry, and the thing about capital-intensive industries is that they're prone to bubbles. If you get a year or so of EVs being cheaper than gas cars, you will see a huge growth in sales as lots of consumers make the rational choice all at once. The spike in sales will spur a bubble in capital investment as investors all rush to capitalize on it. The capital investment spurs R&D, which results in technological improvements which make the cost advantage permanent.
At the end of the 5 years (or perhaps even before) the price of oil will crash back down, probably lower than it is now, as increased EV adoption destroys demand more than supply was choked off. But at that point we'll all own EVs, they will cost less than gas cars, there will be chargers everywhere, there will be solar panels everywhere, and we'll have better batteries and V2H charging.
So yes the US could limit or ban exports. Many countries (including China) have done this in a kind of energy nationalism, but that hangs out allies to dry in a way that would make the US deeply uncomfortable. It would threaten European energy security. It would come at the cost of Latin American exports. So there's a cost to pay.
And more to the point, no US government regardless of party is going to hurt corporate profits by limiting exports. Biden could've done it in 2021-2022 and didn't. And Trump certainly won't. As one example, a big release from the SPR was on an oil-for-oil basis. Rather than cash ii on high prices, it's just a massive gift to oil companies who have to repay the oil (and then some) at some unspecified future point when oil will be cheaper. That's billions the US could've added to government coffers.
I do agree there is a power shift going on but not because of US energy independence. No, it's because the US cannot militarily protect GCC countries and cannot force open the Strait of Hormuz or guarantee global shipping, which has essentially been a US guarantee since 1945.
I do think this administration does want to crack OPEC but that's likely to be of massive benefit to China without China having to do anything.
In short, the US cannot functionally be independent on fossil fuels even if we extracted every drop of oil within our borders--because we literally cannot use all of it, and most of it would be wasted just sitting around.
Yes, we would need to build more refining capacity to use it all effectively, but in a cataclysmic event (i.e. a world war or something) the US would be much much better off than most other countries.
Europe, or China, or India could not though.
India has geography for solar, and the human/industrial capability for nuclear.
Southern Europe can go solar as well.
Northern Europe has it tougher (except Norway, with its abundant hydro). Nuclear could work. Or long range DC cables from South Europe or North Africa (if ever Europe helps them to put their act together - not easy or fast, but definitely in their best interest).
[1] https://en.wikipedia.org/wiki/Spain-Morocco_interconnection
Central and Eastern Europe have it tougher.
The Balkans are quite fossil-heavy, but solar should be quite feasible there.
If foreign oil supply were cut from China or India, they'd be in a much bigger trouble.
Economic: it weakens OPEC’s pricing power in a way you might not see right away if Hormuz is closed, but it could really change the supply picture once things reopen
That is just UAE pressure to make sure they get their dollar swap deal: https://www.reuters.com/world/middle-east/trump-says-currenc...
The Saudis did it to Biden in 2023, the UAE sees the opportunity to do it to Trump now.
What happened this week - they announced they might start selling in yuan, they left the OPEC, and they started a new wealth fund to invest exclusively in China. That gives them an alternative for the dollar-peg since China is their biggest import partner anyways, while also giving their surplus yuan an alternative channel of investment into China.
Still they need the dollar-swap for the essentials - food from India and Pakistan, neither of which will accept their dirhams unless they get exclusive deals (which are not allowed in OPEC). It helps for them that India and Pakistan need lots of oil, and that a dollar peg benefits the UAE more than it does either nation. If the EU plays a greater role in trade, particularly in defence and maritime manufacturing, they will stockpile euros too, to the detriment of the dollar.
Still, they also bought some prime DC acreage to expand their US diplomatic corps, and will likely keep the Washington connection, so long as AI is perceived as useful. Right now, that's the only major export benefit the US provides the Gulf countries. This is them just hedging their bets.
The Yuan is the current bogeyman the Gulf States use when they want attention from the US (not that they’re not diversifying, just that it isn’t a structural shift in a meaningful way). The UAE is making this play right now to make sure they are part of the conversation in deciding how things with Iran end and making sure their influence is sustained after the current administration.
The wealth fund is a way to deploy whatever yuan they receive while gaining political favor with China as well.
OPEC cartel membership didnt gain it access to Hormuz, and the US petrodollar promise to protect UAE states from aggression in exchange for trade in USD could not be upheld.
Well the war is still ongoing, and Iran's regime is already feeling the pain of the blockade [1]. Pricing oil in Yuan because, I guess, the US is somehow not protecting the UAE doesn't make sense because China won't be there to protect them either. The US can just say, well fine you can sell your oil in Yuan. But we'll just blockade the Straight and seize oil priced in Yuan or something. Who exactly does the UAE need protection from? Iran? China's ally?
I swear I read this same story over and over again. There's always just an accusation "thing happened, here's how the US is now in a state of being screwed" and there's just never any follow-up or perhaps imagination that the US could just do something too. Hypersonic missiles? US Navy is done for, no possible counter. Iran has drones? Boom. US is done for no way they can spend Patriot missile money on $30,000 Iranian drones. Nope, nothing anyone can do at all. Iran "closes the Straight", well the US can't do anything. Now they are "embarrassed" and "slammed".
> OPEC cartel membership didnt gain it access to Hormuz
What does this mean?
[1] https://www.wsj.com/world/middle-east/iran-is-flooded-with-s...
It is an admission that US protection was always a paper tiger. Perhaps in the 1960s it meant something, but Iran has shattered the illusion that Washington has any credible defense of the country.
> The US can just say, well fine you can sell your oil in Yuan. But we'll just blockade the Straight and seize oil priced in Yuan or something.
The UAE primarily sells its oil to China, which is its largest export partner, followed by countries like India and Japan. the United States cannot do this without not only obliterating energy markets for an ally, but strengthening alliances between china and india. It is likely that should the US attempt such a move, China would respond with retaliatory technology tariffs and a reduction of agricultural trade.
> Who exactly does the UAE need protection from? Iran? China's ally?
the UAE did not "need protection" from any regional military threat until the United States used regional peace talks as cover to launch a surprise attack against Iran. the UAE would still likely be an OPEC member state had the US not unilaterally chosen to obliterate global energy markets for no consistent or clearly defined reason.
> there's just never any follow-up or perhaps imagination that the US could just do something too.
This conflict was well defined as geopolitical suicide for nearly forty years; its what kept the peace. All simulations and tabletop exercises predicted such an incursion would send global energy markets into panic, trade markets into recession, and produce no meaningful advancement of either regional security or regime change. Iran is backed by powerful allies and has shown numerous times it can meet each US escalation with yet more regional attacks. We have tried escalation and failed, burned through a decade of advanced missiles fighting cheap drones, and have no defined objective politically or militarily for this conflict.
sigh No, it's not. There are 3 aircraft carriers parked in the region, plus US air bases. Iran launched over 2500 missiles at the UAE alone. The US destroyed much of Iran's military, the only thing they have left is the ability to launch missiles and drones at ships or do terrorist style attacks.
But if you want to suggest that the US is a paper tiger here, that just makes everyone a paper tiger. Nobody can stop Iran. Ok.
> The UAE primarily sells its oil to China, which is its largest export partner, followed by countries like India and Japan. the United States cannot do this without not only obliterating energy markets for an ally, but strengthening alliances between china and india. It is likely that should the US attempt such a move, China would respond with retaliatory technology tariffs and a reduction of agricultural trade.
Then we would react with export controls, additional weapons shipments to allies in the region, work with Japan and South Korea to start weapons programs, blockade Chinese trade, there's a million things we can do too.
> the UAE did not "need protection" from any regional military threat until the United States used regional peace talks as cover to launch a surprise attack against Iran. the UAE would still likely be an OPEC member state had the US not unilaterally chosen to obliterate global energy markets for no consistent or clearly defined reason.
And yet, UAE wants the US in the region and in UAE soil. Iran launched over 2500 missiles at the UAE, including civilian targets. Not sure your comment here reflects reality.
> This conflict was well defined as geopolitical suicide for nearly forty years; its what kept the peace.
Things change. US is the #1 energy producing country in the world in terms of oil, gas, &c. We're less dependent on the Middle East, plus we've basically secured the Venezuelan oil supply. Seems to me that what was once geopolitical suicide is no longer the case. We're here today, and life in the US just goes on as normal.
> All simulations and tabletop exercises predicted such an incursion would send global energy markets into panic, trade markets into recession, and produce no meaningful advancement of either regional security or regime change.
TBD
> Iran is backed by powerful allies and has shown numerous times it can meet each US escalation with yet more regional attacks.
Yes, Iran, who is supplying Russia with drones and such for its war against Ukraine is an ally, as is China.
> We have tried escalation and failed, burned through a decade of advanced missiles fighting cheap drones, and have no defined objective politically or militarily for this conflict.
We have not burned through a decade of advanced missiles fighting cheap drones. We can build our own cheap drones and are working on scaling production, and just because you don't understand the political or military objective doesn't mean that there isn't one, however poorly or well-thought it may be.
The US has very much escalated and sits now at the top of the escalation ladder. Iran has been trying to get the US to the negotiating table due to the blockade. Iran can launch its missiles as it likes to at civilian targets in the Gulf. We + allies will just get better at shooting them down. Who cares? If Iran wants to try to escalate we'll just escalate further, blow up more stuff, keep the oil from flowing if we decide. It doesn't really hurt us much.
"Strait" refers to something which is narrow, especially at sea. It can be pluralised as "Straits" in many cases. "Straitjacket" also comes from this root.
"Straight" refers to something which is not curved. The "gh" used to be pronounced and still is in some parts of Scotland.
Well, Iran closed the Straight and the world is facing biggest oil crises since 90ties. US was in fact incapable to prevent it. Even if the Straight opened today, harm already happened and will continue to happen for months. And I dont think it will open today.
The war did not had to start at all and is causing considerable harm already. Iran feeling pain does not mean surrounding states were protected - instead they were put into harms way.
> Pricing oil in Yuan because, I guess, the US is somehow not protecting the UAE doesn't make sense because China won't be there to protect them either.
At this point, China is more predictable and crucially, more likely to keep their word. Not exactly entirely predictable and not exactly truth teller, but the difference here is huge.
They were always in harm's way. The war could have waited, and Iran could have doubled or tripled its missile stockpile and then they really would have been in harm's way. You're falling in to the same trap I mentioned "country does X, end of analysis".
> Well, Iran closed the Straight and the world is facing biggest oil crises since 90ties. US was in fact incapable to prevent it.
Any country is incapable of preventing it then. Iran could always just mine the straight and threaten to launch missiles and go hide in the mountains. If Iran wasn't doing all of these awful things in the region, none of this would be happening.
> They were always in harm's way. The war could have waited, and Iran could have doubled or tripled its missile stockpile and then they really would have been in harm's way.
The missing ingredient has never been how many missiles Iran has stockpiled, it was external military action from someone like the US that gave them the window to assert that control.
The US didn't do the world any favors by getting it out of the way sooner or something, that's just absurd apoligism for a poorly planned war of choice that has obviously been a net negative for basically the entire world.
It would be like if the US nuked China and then shrugged after they predictably retaliated saying it just proved the threat from their stockpile that had always existed.
Why would they threaten to do so prior to being ready? Have you ever played a strategy game where you build up your forces for an advantageous offensive or defensive position? Countries do this too. If we were playing a game where my actions would provide some advantage or victory over you in some area or a broad area, why would I announce what my intentions were to you so you could react or anticipate my actions?
Separately, you can just ask: why are they even stockpiling missiles in the first place? Why isn't Singapore stockpiling missiles, or perhaps Portugal, or Panama, or Morocco? Of course, this then introduces the circular reasoning "because of a potential US attack", but of course if Iran wasn't funding Hamas, Hezbollah, Houthis, and more, building up these missile stockpiles, continuing to pursue a nuclear bomb, helping Russia with its invasion of Ukraine, we wouldn't be here. At some point you just have to look at their actions and their actions suggest implementing a plan.
> The missing ingredient has never been how many missiles Iran has stockpiled, it was external military action from someone like the US that gave them the window to assert that control.
They don't have control over the Straight of Hormuz. It's a bit of semantics, but control would mean they can allow or disallow ships to pass based on their own decision making. They can disallow ships, but the US can also disallow ships. If Iran controls the Straight of Hormuz because they can fire missiles at ships, the US also controls the Straight of Hormuz because of that very same capability.
I think the first step of thinking about war objectively is to consider how each side sees it. The US POV is no less circular, from Iran’s perspective - they could list any number of provocations from the US to justify arming themselves, none more obvious than the war itself.
The debate around who started the hostility is ultimately pointless, the question is what to do about. Ideally the answer isn’t “arm for obliteration because the other side started it”
So let's say Iran stops building up massive amounts of missiles, funding these terrorist groups, stops pursuing a nuclear weapon, stops mass killing of its own civilians, and stops helping Russia prosecute its war against Ukraine (we can even leave this optional just to not introduce additional complexities).
What will the United States now have to do on its side as it pertains to Iran?
This had squat zero with acute danger of military buildup. This happened because Hegseth thought Iran will fold and found it super unfair they did not.
> Separately, you can just ask: why are they even stockpiling missiles in the first place?
To protect themselves when America starta Another war. It cant go without war for long. As brutal as iran is, there was no imminent threat of expansion
It is israel who just displaced millions of people.
Is the idea here that only USA gets to have missiles?
> To protect themselves when America starta Another war.
Yet, only Iran has to protect themselves. Why is that? Well it's because they're doing bad things, and they know that we may do something about it. Why isn't Peru stockpiling missiles, or Thailand, or Iceland? It's because Iran's government was seized by an authoritarian regime that hates America and decided we would be the enemy forever and has continued to attack, and take other violent or non-violent actions that destabilize the region and global trade. If they just stopped doing this stuff, there wouldn't be a reason to "attack".
> It is israel who just displaced millions of people.
I don't think so. But Iran is responsible for Syria and those millions of people too. Like Maduro is responsible for the 8 million + refugees from Venezuela.
Your point of view of the world does not match reality. Stop making excuses and defending brutal authoritarian dictatorships.
> Is the idea here that only USA gets to have missiles?
Well you believe in nuclear non-proliferation, right?
this style of argument really falls flat in 2026 tho. at least for a global audience. it seems you don't appreciate how much america's image as a champion in good faith of freedom, democracy and prosperity has been shattered. not least because the old neoliberal guard has been busy undermining it (see carney's speech at WEF, where he started by pointing out that not only was the rules based order a lie, but that it is no longer acceptable to pretend otherwise). but now also because US aggression is perceived as directly responsible for the global energy crisis, which is affecting everyone else. america simply doesn't have a high horse to get on anymore
Iran did not mined strait until USA and Israel bombed it twice during negotiations, threatened civilisation destruction, murdered political leaders and attacked BOTH civilian and military infrastructure.
You dont get to start a war or bomb and then blame the other side for not passivele accepting the situation.
USA caused harm here.
Iran threatens to erase Israel and the United States off the map pretty much daily. So I just don't care that Trump did the same back to them. If they don't like threats like that, perhaps they should stop issuing them yea?
> murdered political leaders and attacked BOTH civilian and military infrastructure
What civilian infrastructure was deliberately attacked? We do know that Iran deliberately attacked civilian and military infrastructure. Did you mix the two up?
> You dont get to start a war or bomb and then blame the other side for not passivele accepting the situation.
Who started the war isn't an easy question to answer. I can easily and obviously argue that Iran started the war when they attacked Israel through their proxy forces. Ultimately though who "started" the war doesn't matter that much. Both sides have had grievances for quite a long time and things are just finally coming to more direct conflict.
Its clear you have only been getting your information from a certain set of sources. a lot of civilian infrastructure has been destroyed in Iran.
One of Israel's goals is to cripple the economy of Iran.
"Israeli leaders, including Defense Minister Israel Katz, have ordered the military to carry out strikes on targets that cause economic blows to the Iranian regime."
"This included a strike on major Iranian gas infrastructure in the country’s south nearly two weeks ago, and strikes on two of Iran’s largest steel factories on Friday. "
https://www.timesofisrael.com/israel-shifts-to-hitting-irans...
"Missiles also struck one of Iran’s biggest state-run pharmaceutical companies, Tofigh Darou, destroying its production and research and development units, state media said on Tuesday, blaming the strike on Israel. It’s a major producer of anti-cancer drugs and anesthetic in Iran"
"A century-old medical research centre (Pasteur Institute) set up to fight infectious diseases like plague and smallpox has been heavily damaged in strikes on Tehran"
https://www.telegraph.co.uk/global-health/terror-and-securit...
In addition, one of my friends who lives in Iran reported that a dialysis center, a refrigerator factory, a public park (that had "police" in the name), a popular chicken restaurant, and an entire apartment building full of people were each separately targeted and destroyed (apartment building was double tapped, killing rescue workers)
the above is just a small selection, universities, factories, bridges, oil infra has all been targeted as well.
would you consider US Steel factories, universities that do research for the military, factories or companies that make components that go into US weapons, apartment buildings where one military leader lives as military or civilian infrastructure?
Adjusted for inflation the price of oil isn't even the highest it's been this decade, let alone historically.
The price tripled from 2003-2008 as well.
>The war did not had to start at all
We probably won't know for twenty years if that's true or not. It's not as Iran's been some peaceful country for the last twenty years, they actively have sponsored terrorist organizations with the purpose of destabilizing the region. The country also sits on a wealth of natural resources but was solely researching nuclear power for peaceful purposes.
Really the big lesson for the next superpower is to simply act earlier. If you don't care about winning and just being a thorn in everyone's side, ballistic missiles are a great investment, and it should have been taken more seriously when Iran started stockpiling thousands of them.
I dont think UAE cares about American oil prices that much. Nor does Europe nor does Asia. That just meand America is less motivated to solve clusterfuck it created.
And yes, it is huge issue already. With flies cancelled for summer, with strategic reserves already being used, with homeschool and home office in some countries, shorted workweek in others, factories producing less.
> We probably won't know for twenty years if that's true or not.
We do know that. There was no urgent reason to start badly prepared war. And no involved country is peaceful.
> The country also sits on a wealth of natural resources but was solely researching nuclear power for peaceful purposes.
It was entirely legal for them, because literally USA teared down agreement to do the opposite.
And what everybody knows now is that the only way to be safe from aggression is to have nuclear.
[1] Not a 2nd Amendment criticism, I’m a strong supporter. More so the folks who load up on ammo and “cool” gear and all that stuff.
defecting from the cartel, a tale as old as time
On the backside I’m sure there will be lots of fun back door deals around all those interceptors and future anti drone technologies. Today though the US has been the impetus of a lot of the current issues.
I have read this headline dozens of times in the previous 30 years.
Kuwait was “saved” by the US. The Iraq invasion was approved by the GCC, partly as payback for Kuwait, and anyways Iraq is not part of the GCC. The Qatar blockade was self-inflicted (and extremely stupid).
Does OPEC limit that? It would be very surprising to me if they did, as the point of opec is only to limit production when oil prices are low. They aren't low right now.
I believe the US has given tacit approval or is behind this move entirely for what comes when the Strait inevitably reopens and that is to get the UAE to export well beyond what they might otherwise as an OPEC member.
The UAE like most GCC countries is entirely dependent on US arms to maintain their regime so I simply cannot imagine them doing this without the US putting them up to it or looking the other way.
Mbpd = thousand barrels per day, MMbpd = million barrels per day
Isn’t it 30-50%ish depending on how you count it? Calling it “a fraction” makes it sound much smaller in conventional English.
Despite there being way less than 1 successful attack per week [1] travel through the Red Sea is down from ~500/week to ~200/week [2].
[1]: https://en.wikipedia.org/wiki/Houthi_attacks_on_commercial_v...
[2]: https://en.wikipedia.org/wiki/Red_Sea_crisis#Houthi_attacks_...
UAE has a unique yada yada and also ended up with a surprisingly remarkably free economic index despite being a theocratic monarchy.
As did the monarchy Lichtenstein, British controlled Hong Kong, and the one-party state of Singapore (technically democratic, in practice it functions like a recallable monarchy).
Also of note the three richest countries by GDP PPP per capita are Monaco (hybrid monarchy with monarchist veto powers), Lichtenstein (hybrid monarchy with monarchist veto powers), Singapore (single party state).
> one-party state of Singapore (technically democratic, in practice it functions like a recallable monarchy).
But let's not play the bullshit and borderline xenophobic, ad-hominem attack that it's just "outsiders" who "just don't understand." Or try and distinguish that it's people 'imposing their worldview' (something every human does no matter what they are arguing).
But don't take my word for it. Read what Lee Kuan Yew had to say himself[0]:
The PAP represents the broad middle ground in society and attracts the best and brightest people into Government, LKY said last night. He therefore did not see a two- or multi-party system emerging in Singapore soon.
This and other points, documented by Yeo Lay Hwee (Senior Fellow, Singapore Institute of International Affairs) , who even if she flip flops between suggesting Singapore is a one-party state, lists quite a few reasons why it is a reasoned viewpoint from an understood observer [1].
[0] https://eresources.nlb.gov.sg/newspapers/digitised/article/s...
Saudi Arabia and the UAE have been urging the US to bomb Iran since 2015 for their own non-oil reasons. They see political Islamism as a strategic and domestic threat. That's why they had Qatar under a blockade for a number of years. Iran is their biggest rival, exporting militancy to Yemen - the Houthis who UAE and Saudi Arabia battled for a number of years last decade. A number of attacks on Saudi and UAE oil and gas facilities from Iran Quds-backed militant groups in Iraq across 2019-2022. None of this makes the news in the West.
> UAE's major issue with Saudis is their quiet support for Islamism as well.
This is a battle of economies and regional influence.
Even UAE/saudi backing different groups in Sudan war is rooted in Yemen/brotherhood issue. Both Sudanese groups sent competing troops to fight in Yemen.
> While Saudi Arabia does not have any problems with Islamists and in fact more or less openly supports them, according to Donelli, the UAE sees radical religious groups as a threat to its domestic stability, as well as stability in the wider region. This distinction is also evident in the two countries’ support for the respective sides in Sudan. The UAE supports RSF’s more secular version of Islam, whereas the SAF under al-Burhan’s leadership is widely seen as more or less a continuation of the regime of Omar al-Bashir, which was heavily influenced by the Muslim Brotherhood. https://nai.uu.se/stories-and-events/news/2025-02-07-gulf-st...
They've hired American mercenaries to assassinate Islamist civil society figures in Yemen. They pay European right-wing influencers to spread anti Muslim content (yes you read that right). They are the buyer for conflict gold coming from the Congo. In short they are a problem.
> Legal experts, analysts and local officials warn that the ultimate objective is the “emptying of residential geography”, carving out a depopulated “buffer zone” at the forward edge of the border that permanently prevents displaced residents from returning and establishes a violently enforced demographic reality on the ground.
That's called "ethnic cleansing" when carried out by other countries. Iran will not agree to peace while this is going on. Partly because that's Iranian proxy forces in there among all the civilians getting killed.
If China were to involve its Navy in opening the straight that's exactly what Good outcome could look like
Out of curiousity, what's your good outcome from the Chinese sending destroyers to the gulf?
It is more like the Western nations which cannot withstand another month of all this 'posturing' .. But there is some resilience to the idea that the Iran/Russia/China corridor is going to keep those nations relatively buffered from total disaster.
In 2019 Qatar left OPEC, but nobody cared because oil is less than 10% of their national fossil fuel output, which was about 2% of OPEC's oil output.
Or it is also part of a long term plan of the US to control all energy routes. It will keep Hormuz closed and try a new pipeline via the UAE to the Gulf of Oman.
Fragmentation of the energy producers is another goal. New Alaskan LNG projects have been approved and are all the rage among senators:
A happy coincidence:
"Alaska LNG will deliver vital #EnergySecurity for our military and allies in the Pacific. Thank you @SenDanSullivan for your continued engagement and advocacy."
The US would control the following:
- Baltic sea via pipeline threats.
- Corridor from the Caspian sea from Azerbaijan through Armenia to Turkey.
- Venezuela.
- UAE corridor to the Gulf of Oman.
Probably much more than that. Grabbing the Arctic route via Greenland has failed so far.
Let's rewind to March 2020 and the start of the pandemic. For a very brief period, April oil futures went negative. Technically, this was an extreme contango market. Oil producers were running out of places to store oil and nobody was buying.
For some more background, OPEC tries to maintain oil price stability. If it gets too low, they don't make enough money. If it gets too high it creates political instability and jeopardizes security relationships with the US and Europe. So every 3 months OPEC meets and looks at oil supply and the projected demand and they adjust production to maintain a price floor and a price ceiling. Before the war this was typically $70-80. In years past it might've been $60-70. They don't always succeed because of exteranl factors, unforeseeable changes in demand or even just member countries lying about production or production cuts.
So in April-May, the then Trump administration went to Saudi Arabia to get them and OPEC to cut oil production [1][2][3]. Instead of the 3 monthly reviews which would've naturally cut production anyway to maintain the price, Trump browbeat MBS into a 2 year production cut, initially 9.7Mbpd (million barrels per day) and then reducing over time to I believe 6.3Mbps [4].
This was a disastrous deal. You can overlay a chart of the 2 year deal and global inflation and they match up pretty much exactly.
The Biden administration quietly went to MBS and asked him to end the deal. He refused. There are historical reasons for this, namely that the US (under Trump) had kinda screwed Saudi Arabia over in 2015, 2017 and 2018 but I digress.
So in the US the politics of this were that Republicans were going to pin this on Biden (even though it was a Trump deal) and the Democrats were never going to blame Saudi Arabia. Instead it was just "oil companies are greedy and bad" from a pure short-term politics POV. Nobody brought up the 2020 OPEC deal. And that's wild to me. It just goes to show that US foreign policy is uniparty and a Democratic administration was never going to publicly split with an ally like Saudi Arabia.
So does OPEC matter? Well they were instrumental in enforcing that deal. So you tell me.
[1]: https://www.reuters.com/article/economy/special-report-trump...
[2]: https://www.reuters.com/article/business/opec-russia-approve...
[3]: https://www.reuters.com/business/energy/opec-would-miss-frie...
[4]: https://www.reuters.com/article/us-global-oil-saudi-cuts-idU...
While I like the parent's provided information, I feel like the pandemic, fiscal stimulus, and wars were bigger drivers for inflation!
[0] https://www.reuters.com/article/business/healthcare-pharmace...
I expect UAE to send signals that they will increase production considerably once situation allows.
Whenever oil prices surge or 10Y yield touches 4.4% we get some action to contain them.
Unlikely. Out of OPEC’s twelve members [1], one is controlled by Trump, one—the third largest—is bombing the UAE and the other—the absolute largest—is on the other side of every proxy war the Emirates are invested in. As a multi-lateral organization it’s about as fucked as BRICS.
> since the 1980s [OPEC] largely failed to achieve its goals [...]
> members have cheated on 96% of their commitments.
> One large reason for the frequent cheating is that OPEC does not punish members
https://www.ft.com/content/be345914-7b4b-4264-bcbd-6e5e33b79...
I am personally convinced that there are many more people pretending to understand geopolitics than people who actually understand. It could be that no one truly understands due to the amount of fractal complexity and emergence.
They'll diversity into Gold, rare-earth metals (they're only getting more important), CIPS, Yuan, Euro. That diversification helps everyone else, but will hurt the US, which hurts financial markets, and thus everyone else. And once they're all divested, the diversification will add risk and losses. Can't be helped though, they still need security. So we're looking at a generation of slow global decline, probably propped up slightly by the industrialization of AI (which of course China is leading the world in, as nobody cares about "better", they care about "cheaper"). China is the real winner, because all they need is oil, and their partners will make sure they get a steady supply (because it's in their partners' interests; that's what having allies is all about).
US can't stop this; their military isn't equipped to fight wars on multiple fronts, their lumbering, expensive weapons can't be sustained in a protracted conflict, their wars aren't popular at home, and they don't have the manpower. Even when they eventually start the draft back up it'll take years to build up their warfighting capabilities, and by then the world will have diversified enough that they can take the hit. (The US will try a World War anyway to try and retain the Empire, because their leaders are psychotic morons and their people are compliant, but they'll still lose. (Historic parallel: Sparta. Great military, but tiny, so most of their power came from wealth and tenant states; eventually the rest of the mediterranean got tired of their shit (installing dictatorships, alienating allies) and their empire died. Hell, even their Navy was paid for by Persia - foreign investment used to weaken rivals via proxy war))
I don't think this is avoidable. Nobody trusts the US now. The divestment has already begun. Countries aren't suddenly going to change their minds - even if Trump doesn't overthrow the government to cement this new status quo in 2028 (which he 100% will), the next President could be another Trump. Nobody wants to be subject to their insane policies (foreign & fiscal) anymore. So the US isn't a secure place for cash. Nations aren't just going to shrug and ignore it, they're going to act to protect their interests.
>That diversification helps everyone else, but will hurt the US, which hurts financial markets, and thus everyone else.
These are huge jumps in logic, I'm not even sure where to begin. I guess the most glaring question is: If other countries are actively diversifying from US assets as you claim, why would they still be so hurt by a US financial market downturn?
>And once they're all divested, the diversification will add risk and losses.
Since when does diversification ADD risk, and how would losses be incurred?
>which of course China is leading the world in, as nobody cares about "better", they care about "cheaper"
Also a huge claim to make. You'll find plenty of people who want the best models and are pretty price-insensitive, especially among those who get the most economic value out of AI.
> To be honest this comment kind of reads like anti-US fanfiction.
About the weak diversification argument: If people really do invest much less into US assets, then other available high quality assets will also become more expensive and result in lower yields. In turn, the US assets will appear "cheap" and attract new capital. This feels like a mirror of the global soybean trade. If China says they won't buy US soybeans (primary used to feed hogs), but buy Canadian or Brazilian, then other buyers just shift where they buy from. In the end, the global demand for soybeans has not fallen, rather a brief game of musical chairs was played.
It's not a claim, it's been reported for years. US foreign exchange reserves are at a 30-year low. Central banks have bought ~900 tonnes of gold in 2025, nearly matching the historic high during the pandemic. Central banks' holdings in gold now surpass US Treasury holdings (and we all know that gold is nearly 5x its price from last year). Poland, Turkey, India, Czech Republic have all been hoarding gold instead of dollars. France repatriated its gold. Saudi Arabia didn't renew their oil-for-tbills protectionist agreement with US in 2024. Big oil deals are now being done in Rupees and Yuan. Canada dumped its US treasuries. BRICS is already operating a new banking system independent of the US dollar. mBridge and CIPS allows China to settle payments with other countries solely in Yuan. Japan made a $75BN swap deal with India to deal in Rupees if it needs to avoid the dollar, with similar deals with Indonesia and Thailand. Japan is also working with UAE on non-dollar oil deals in the future.
> If other countries are actively diversifying from US assets as you claim, why would they still be so hurt by a US financial market downturn?
Because the global economy is one gigantic system of systems standing on top of the US financial system. When the US has a gigantic economic shock it ripples worldwide. But de-dollarization is gradual, so it will be a gradual drawdown in international economies.
> Since when does diversification ADD risk, and how would losses be incurred?
The US is where people put their money because putting it elsewhere was riskier. But now the US might be more risky. So you diversify... to the places that were risky before. So you can only move to risky places. That risk eventually leads to some loss. It's a "least-worst option" situation, but the end result isn't going to be great.
> You'll find plenty of people who want the best models and are pretty price-insensitive
That's now how capitalism works, that's how rich people work. The echo chamber of HN is full of upper-middle-class people with disposable incomes that are happy to waste money to feel emotionally better about their choices. But businesses aren't emotional, they're competitive. They want lower costs and higher profits. That means spending less. If a business can use a model that's 1/6th the price to get approximately the same results, they're going to do that, in order to gain a competitive edge. China is the place you go when you want to cut costs.
I like this part:
> One big flaw in their argument is that the petrodollar isn’t nearly as big a factor in the global dollar ecosystem as it used to be
> A proper grasp of the events in question suggests that the ballyhoo over the petrodollar’s alleged imperilment will prove to be just the latest in a series of false alarms about the dollar’s status atop the world’s currency hierarchy.
The writing is on the wall. It might take decades, but it’ll end.
Which month?
The dollar isn't strong because oil is traded in it. Oil is traded in dollars because the dollar is strong. What makes the dollar strong? The US military and, at least up until now, the US essentially guaranteeing global maritime trade. Oh and the US also being the world's arms dealer. Why this is such a huge strategic blunder is because the US has proven itself unable to militarily open the Strait of Hormuz. This should surprise precisely no one. The Joint Chiefs knew it. The Intelligence community knew it.
Let me put this another way: you could make all oil trades in euros tomorrow and pretty much everyone would still hold dollars and convert to euros as needed. People don't understand this so you get silly conspiracy theories around, say, the Iraq War being started because Saddam Hussein was starting to trade oil in euros.
Let me give you a concrete example of this all in action. Iran has threatened to charge tolls to pass through the Strait and they wanted to be paid in crypto, largely to avoid having their funds frozen (as has already happened) because the US has that kind of control over the financial system. But that's still a problem because all US companies and any financial institution that wants to main access to the global financial system isn't legally allowed to trade with Iran, even in crypto. My point is that all of this could be traded in crypto and it wouldn't matter. The "petrodollar" would still rule.
> What makes the dollar strong? The US military
The US military and the dollar are strong because the US economy is strong.
UAE leaving OPEC is like breaking up a workers union. UAE is no longer required to restrict how much oil it exports, and also doesn't have to set a price floor. They're allowed to sell more oil cheaper, potentially at the expense of neighboring OPEC countries.
Which to me sounds like a good thing for the rest of the world?
If you've been involved in an SDO ("Standards Development Organisation" think ISO or the IETF although the IETF would insist that they are not in fact an "Organisation" they will admit to being in effect an SDO) you've probably at least glanced at documents explaining that you absolutely must not do anything which looks like Cartel activity, you can't use the SDO to agree prices, or to cut up territory or similar things. The SDO's lawyers will have insisted they make sure every participant knows about this because they don't want to end up in prison or worse.
However the trick for OPEC is that it's a cartel of sovereign entities. It can't be against the rules because its members are the ones who decide the rules. So Chevron and Shell and so on cannot be members of OPEC but the UAE and Venezuela can.
It probably isn't a bad thing, but let's not overestimate the beneficial effects. The reason oil prices are high right now isn't because of cartel fuckery, it's because of Trump and his war. And oil supply chains are in such chaos because of Trump's war that even if it ended tomorrow it would take markets multiple years to return to a pre-war state.
The bottom line is that oil prices are going to be elevated for years to come, and when oil prices are high, OPEC has nothing to do other than sit back and collect the profits. And thanks to the ongoing solar revolution, oil's days as the world's predominant geopolitical poker chip are numbered; by mid-century OPEC won't be relevant anyway.
Even if this turns out to be true, it would be irrelevant. The reason that oil occupies the geopolitical role it does today is because of its potential to rapidly bring the entire developed world to a halt. Oil will always be in demand because of its many useful applications (and this demand may even grow in absolute terms despite declining per-capita consumption, because the global human population is projected to continue increasing well into the latter half of the century), but as an energy source, by 2050 it will have so many highly-available complements that an oil cartel will be as relevant as a potato cartel.
https://www.cbc.ca/news/world/potato-cartel-fries-tater-tots...
"In 1949, Venezuela initiated the move towards the establishment of what would become OPEC, by inviting Iran, Iraq, Kuwait and Saudi Arabia" ...
Nigeria joined OPEC in 1971.
OPEC or UAE?
UAE leaving means UAE can price below OPEC's target and take more of the market. OPEC will have to react and lower prices or concede some of the market.
Does any of this matter if the major players can't ship oil through Hormuz? Who knows...
And while it's true many member exceed targets, it's like speeding on US highways: everyone does it, but anyone driving 20 mph faster than the pack is nobody's friend. Karma will happen.
Recently the UAE faction in Yemen was forcefully reined in by the house of Saud, and OPEC kind of prioritises different things than the UAE, i.e. not pushing profits hard in the short to medium term instead focusing on stability and predictability.
Currently the saudis are trying to resolve the Hormuz issue and the attack on Iran through diplomacy, which the UAE is not exactly fond of and would rather see a violent solution. In part this is coloured by the close relation between the UAE and Israel, both of which share the view that running militant factions in failed states is preferable to orderly international relations between sovereigns. The saudis aren't as keen on this type of foreign policy and in other aspects also not as friendly with Israel as the UAE.
The UAE has been signaling that they don't really want to be a part of OPEC since at least 2020 or so. Them actually leaving was to be expected, the question should have been 'when' rather than 'if'. Iranian retaliations on the UAE and subsequent damage to the reputation of mainly Dubai and Abu Dhabi as well as capital flight probably strengthened the UAE politicians longing to get out of OPEC and start pumping and selling at full capacity to try and make as much money as possible as fast as possible.
If the UAE does not do this it'll be more exposed to credit and currencies besides the US dollar, which they probably find rather inconvenient.
It all depends on how Saudi wants to be seen in the moment and what Trump thinks makes him look better in the moment.
But like, Saudi gave Americans golden planes and extraordinary amount of bribes, so one would assume they were buying something.
Slowly weakening remaining Arab states and setting them up to fight each other.
The UAE has had a long standing land dispute with Iran.
The recent barrage of missiles might have just pushed the UAE leadership to have lost patience with their northern neighbor.
This might be an act of protest.
An alternative is the US trying to dismantle OPEC together with its new found supply in Venezuela to drive prices down
Production limits were always a bit shady. Most meetings were just nations declaring what they'd (be able to) do and then a lot of talking to maybe see if things could be tweaked a bit and come up with a statement that made it look useful.
Their last 'success' was before Russia-Ukraine where they basically tried to suppress the price to make US shale too expensive and reduce its market share. Which happened. But again, debatable to what extend by OPEC's influence while they do write their own press release - with the explicit goal that the perception of power increases the price more.
Currently the entire region is going up in flames and allegiances are being stressed to breaking point.
The UAE leaving - as far as i can tell - is just a middle finger telling some of the club members its a farce and useless when it comes to its goals and (soft) powers, in the new reality of war & US export dominance. The middle finger being a political signal as everyone seems to be in disagreement on how best to handle the Israel-US-Iran war.
- why now? What has changed that made the lack of limits more attractive than it used to be?
- despite no limits, the strait is blocked, so they still can’t sell anything?
2) Thus far, the UAE has been prevented from maximizing its revenues due to OPEC/OPEC+ production caps which is no longer acceptable due to global needs. It can now chart its own independent course by ramping up production and earn hard currency which can be its leverage against an uncertain future. For instance, UAE just signed a deal with South Korea to give it guaranteed "priority access" (meaning first before others) and "joint stockpiling" (for world market) of 24 million barrels. Other countries in Asia who have storage capabilities are also "tripping over each other" to cut similar deals with UAE. This is once-in-a-lifetime opportunity not to be missed.
3) Discontent with OPEC/OPEC+ and its members since the current conflict has made it clear that nobody will come to its aid when the chips are down (other than the US). It is "every man for himself" now and thus UAE has decided to chart its own independent path.
This is very welcome news and i hope other OPEC/OPEC+ members will also follow suit in their own national interests.
2) They can gain by increasing their production, IF they can get that out through Hozmuz. And IF (after Hormuz is opened) other OPEC+ countries DO NOT decide to do the same and the price of oil collapses.
3) US did not meaningfully came to their help. The high-end air defense systems were reserved/moved to Isreal. They mostly defended themselves, with the stuff they bought over the years from the US. A slightly cynical take would be 'classic protection racket'.
4) The national interests of other OPEC members are best served by being united against greater forces from outside region, not by fracturing and bickering among themselves. This is classical divide and conquer.
Not quite. ADCOP was carrying 50% of UAE production (1.5-1.8 million bpd) and is being ramped up significantly. OPEC had limited UAE's output to 2.9-3.5 million bpd thus far and since the conflict UAE has been targeting 5 million bpd. With this announcement the dependence on Hormuz is being lessened drastically.
> 2) They can gain by increasing their production, IF they can get that out through Hozmuz. And IF (after Hormuz is opened) other OPEC+ countries DO NOT decide to do the same and the price of oil collapses.
As pointed out above Hormuz is being bypassed with ADCOP's capacity being ramped up. I am willing to bet, this announcement is what will get Iran to seriously consider removing its blockade of Strait of Hormuz since its main leverage will be gone. A good example is Russia's loss of leverage over Europe when most of the EU countries cut their dependencies on Russian Oil/Gas since the start of the Ukraine war.
> 3) US did not meaningfully came to their help. The high-end air defense systems were reserved/moved to Isreal. They mostly defended themselves, with the stuff they bought over the years from the US. A slightly cynical take would be 'classic protection racket'.
Most of UAE's equipment is from the US. See US approves $7 billion more in weapons for UAE - https://www.reuters.com/world/middle-east/us-approves-7-bill... and U.S. Considers Financial Support for Oil-Rich U.A.E - https://www.nytimes.com/2026/04/21/business/economy/us-uae-f... Only recently have they started diversifying with a major defence deal with South Korea.
> 4) The national interests of other OPEC members are best served by being united against greater forces from outside region, not by fracturing and bickering among themselves. This is classical divide and conquer.
Nope; OPEC/OPEC+ exists only to serve the interests of Saudi Arabia and Russia. The others went along since money was rolling in anyway. But now the geopolitical situation has changed and every member has to look after its own national interests.
However, for your edification;
The wikipedia page for ADCOP i had given above, lists a whole set of links from where you can get more info. and data. One main source is the website of ADNOC (https://www.adnoc.ae/) who owns/operates ADCOP. The UAE has been calling in loans (eg. $3.5billion from Pakistan), asking the US for money (links given above) etc. all towards having enough to ramp up production to 5 million bpd by 2027. The defence cooperation between the UAE and US is longstanding, with the recent war merely ramping it up. The OPEC/OPEC+ is just a cartel which should have been broken up long ago.
The UAE’s Energy Playbook Is Paying Off Amid Global Turmoil - https://oilprice.com/Energy/Crude-Oil/The-UAEs-Energy-Playbo...
UAE To Hit Its Oil Capacity Increase Sooner Than Expected - https://oilprice.com/Latest-Energy-News/World-News/UAE-To-Hi...
Will the Iran war end Strait of Hormuz oil supremacy? - https://www.dw.com/en/iran-war-strait-of-hormuz-oil-supply-r...
In bid to bypass Hormuz chokepoint, Gulf countries scramble to ramp up infra - https://archive.ph/Xh1aq#selection-669.0-669.76
The increase in production capacity is irrelevant if you don't have a way to export the said production.
My question was specifically about the increase in the pipeline's capacity. Because your statement "As pointed out above Hormuz is being bypassed with ADCOP's capacity being ramped up." does not make sense otherwise.
Chatgpt tell me this this: Short term: increase ADCOP from ~1.5 → ~1.8–2.0 mb/d (confirmed and achievable) Medium term: expand storage and export infrastructure at Fujairah Long term: build additional pipelines/corridors alongside ADCOP
Short term is too small. Medium term does not help with the throughput, just better buffering. And the long term is, well, long term (= many, many years).
Why could something that might happen many years in the future force the Iran to open Hormuz now?
The thing is, 5-10 years from now the importance of oil will be greatly diminished, as this oil shock will result in much greater push for decarbonisation than all climate summits combined (and the technology -- mostly solar and long distance DC lines - is essentially ready, at a reasonable cost). The gulf states see this, so I am not 100% sure all those pushes for extra pipelines will come to fruition, once the Iran war cools down.
You simply are not understanding my comments nor reading the provided informative links.
There are three things to consider viz. 1) Production Capacity i.e. new wells/sources 2) Pipeline Capacity i.e. pipeline bandwidth and no. of pipelines 3) Storage Capacity i.e both at terminal/port and distributed worldwide.
The Iran/Strait of Hormuz problem was foreseen long ago and the UAE specifically has been working on all three of the above. ADCOP construction was started March 2008, completed March 2011 and operational in June 2012. That gives you an idea of how fast things moved.
The last link about infra above lists some possible ways to increase pipeline capacity which in the case of UAE is actually Short/Medium term (easily within 5 years) viz;
... as well as enhancements or parallel lines to the UAE’s ADCOP pipeline to Fujairah,” said Kpler oil analyst Grabenwöger ... In terms of timing, the UAE probably has the most flexibility to move relatively quickly on incremental projects ...
There is also talk of extending ADCOP to the nearby Omani port of Duqm.
Conlusion:
“Five years from now, the Persian Gulf will have far better bypass options than it does today. No matter what the US and Iran agree over the future of Hormuz, the strait’s status will change. But the waterway will never be as critical to the global economy as it was when the fighting started six weeks ago,” Blas wrote.
> The thing is, 5-10 years from now the importance of oil will be greatly diminished
This line tells me you have no idea of the Petroleum industry and its importance to the modern world. Our dependence on Oil will not go away in the next 50 years nor even 100 years. As an example, look up "Naptha shortage" to understand how vital the byproducts of crude oil refining/distillation are to our modern industries. There are over 6000 petrochemicals ! (https://en.wikipedia.org/wiki/Petrochemical) Renewables only help with alternative energy sources, and given the way we have built our modern industries around petroleum they cannot meet all our needs. They can bring down our reliance on Oil but it is very longterm.
If I had to guess, the UAE is looking to form petro-alliances, and have a negotiating leverage. They're have to compete, and they can't beat saudi. So, either the US caters to their demands, or they'll be forming alliances with india and china, where currently OPEC's price setting was a limiting factor.
China is currently importing 1.6M barrels/day from Brazil
Why/how?
Without a healthy cartel, wouldn't prices go down? Cheaper oil means less adoption of alternate energy sources.
Only the non-competitive ones. That's how competition works.
OPEC would be deemed an illegal anti-consumer price fixing scheme under the laws of any country with even the most basic of anti-trust laws, if not for the fact that its entirely composed of sovereign countries not subject to any law but their own.
That moves prices upward, because people are willing to pay more, but increasing production is not like turning the faucet in your home. It takes time. This is the instability of oil production that OPEC tries to prevent, to keep the world hooked on readily available just cheap enough oil.
> instability of oil production that OPEC tries to prevent
First of all, if the goal is to prevent instability OPEC is doing a terrible job. Secondly, a cartel is not needed to prevent price instability, as demonstrated by the hundreds of other commodity markets around the world which are not controlled by cartels engaging in price fixing schemes.
As with any cartel, the purpose of OPEC is to maximize profits for its members, artificially fixing the price of oil at a level higher than what it would otherwise be in a free market not controlled by a cartel. Price stability is a side effect of that, not the goal.
I mentioned this upthread, the instability OPEC is trying to prevent is civil unrest from not being able to fund their social programs and governments. They need a price that puts them in the black and the rest of the world will pay. If it was a free market the fracking boom would still be raging and oil would be $30/bbl. Many gulf nations would fall apart if oil was at that price for a long period of time hence the price manipulation. (I'm not sure how they got the frackers to ease up, some say many of the frackers were bought out by OPEC members and their wells capped but that's just conspiracy afaik)
If the price of oil remains low the gulf governments can't fund their social programs and risk instability. That may not be the only reason for OPEC but it's a major one.
When fracking really took off the writing was on the wall and I think many OPEC nations have since taken serious measures to shield themselves from price drops. This is probably why the UAE can now feasibly leave OPEC. I thought the fracking boom was the end of OPEC but they managed to hang on.
Oil production and distribution is basically infrastructure, like energy or internet. It can't really follow free market dynamics without eating itself.
Yes and we've seen negative electricity price in some EU countries a few days ago: very sunny days but not too warm, perfect for solar panels. Supply surpassing consumption: negative electricity prices.
While we're, supposedly, living through an energy crisis. There may oil shipment issues and there are issues with energy due to the Russia/Ukraine war too but... Many already understood that there were solutions to not be entirely dependent on oil.
Doomsayers are going to argue that "we need electricity during the winter at 6 pm" so a "largely negative electricity on a sunny sunday means nothing" (Belgium, two days ago: hugely negative electricity prices, for example and it's not the only case) but the truth is: we're not anywhere near as dependent on oil as we were during the Yum Kippur war / 1973 oil shock.
And oil is definitely limited in how high it can go for as soon as it goes up, suddenly other energy source make more and more sense economically.
Once again: negative electricity prices two days ago. Let that sink in.
They can, though? Batteries can offset the start-up times, otherwise gas plants can start up within minutes and nuclear can ramp up within days
Turbines could work. But that's not the majority of plants.
The writing is on the wall for fossil fuels. Even _they_ are doubling down on solar power and switching away from fossil fuel.
https://en.wikipedia.org/wiki/Solar_power_in_the_United_Arab...
There are dozens of ways to increase production through world peace, better drilling technology and ideological conversion. Most of African production is well below geological potential (Libya being the easiest example, but also applies to Nigeria and the DRC etc). European shale is barely investigated, Russia is restricted by sanctions, the Middle East by war. Antartica and the Falklands are relatively unexplored but feasible.
However, the electrification of transport will erode demand in everything besides heavy shipping and jet fuel. Without that demand oil prices will crater.
Not sure I buy that. Oil will still be in demand as a chemical feedstock. In fact, there are already people saying that oil is too precious to use as a fuel.
If we have plenty of energy anyway we can just make exactly what we need, no need to drill for a mix of pot luck hydrocarbons. If we don't have enough energy anyway then we're burning hydrocarbons to get energy and we might as well use them as a feedstock too.
Substitution is highly impractical in the short term but in a conversations of decades/centuries it's significant. Venezuela's reserves alone could run the world's petrochemicals for 60 years (Gemini) so it's a realistic perspective. Together with other proven reserves we could be okay for centuries.
Recycling is sometimes an option too.
That's to say, I think you forgot to update your number when time passed.
1 - time started at the 1970s, that's a well known fact
Where does the article say that? It says this is expected to lower the price of oil.
It also says that, because the price of oil is currently unstable, the impact will be difficult to see:
> Mazrouei said the move, in which the UAE will also leave the OPEC+ grouping, would not have a huge impact on the market because of the situation in the strait.
But it doesn't say anywhere that there's uncertainty over in which direction this moves the price of oil. The uncertainty is over what the price of oil will be.
I can't see how it is actually a win for Trump. OPEC has mostly been a big partner with the US. They are the ones that have mandated using the dollar as the baseline currency for buying and selling OPEC oil.
The UAE's exit almost certainly signals they are planning on selling oil in other currencies (probably the Chinese yuan). It's also a sign of the UAE wanting out of the partnership it's enjoyed with the US and it's allies.
Has anyone ever quantified the benefit the U.S. supposedly gets from dollar denominated oil? How does that compare to the cost to the U.S. of paying cartel pricing for oil? Given that the U.S. is a huge oil consumer, surely the cost to it of cartel pricing in oil is huge.
If there is benefit it is small. It is mostly symbolic - petrodolar is a symbol of a power and people react to it.
It's kind of unfair.
If they can recoup some of those losses selling outside the system in Chinese currency, (or even in US currency), I have to imagine that would provide some ameliorative relief. It won't make them whole. They've got a lot of problems right now. But I mean, at least it starts them filling back in the giant hole that everyone else dug for them.
On the other hand, from the longer term point of view, it looks like big part of the business model of UAE/Dubai (a safe, luxury place for rich) has been shattered and I don't see it coming back.
In the short term, they might want extra revenue, but in the long term, creating extra tensions with their neighbour can't be good.
I mean, I don’t even know if I mean this sarcastically anymore, but are we sure that Trump and the US’ interests are aligned? I think something can be a win for Trump and a loss for the USA.
In fact, it may even be possible for this to be more in line with the vision of people who did not vote for Trump than the people who voted for him.
If you look at presidents historically, there are some occasions where the vision they described during the campaign to get votes is not in fact the vision they bring about while governing.
Also - what is your presumption of what my vision of the USA might be?
Whether he finds the overall effects positive or negative is a different question.
For a super brief background, the US has what's been called an oil-for-security deal with Saudi Arabia since 1945. The US supports the Saudi royal family and Saudi Arabia keeps the oil flowing, which has largely been the case (other than 1973). Saudi Arabia remains the "big dog" in OPEC. OPEC+ is really about Russia even though it also includes Kazakhstan and Mexico. Russia became a major oil producer and exporter in the last 20-30 years.
OPEC generally likes stability in oil prices. How it works now is that every 3 months they meet and figure out what the demand for oil will be and adjust production based on that projection to maintain both a price floor and a price ceiling. Prior to this conflict that range was $70-80. Each member gets a share of that production. OPEC hasn't always been successful in policing member countries who have at times exceeded their production targets and also lied about production cuts.
Gulf countries now are utterly dependent on US arms to maintain their (typically unpoular) despotic regimes (usually monarchies). The UAE is particularly belligerent here. I view Dubai as a cleaner, shinier Mos Eisley. The UAE is directly responsible for the genocide in South Sudan. US arms are diverted to the RSF in exchange for illegally smuggled gold to Duabi that gets laundered via Switzerland [1]. Dubai is a terrible place.
Beyond Russia's rise as a major energy exporter, the US also became one in the last 15 years, particularly in 2015 when the export ban was lifted on crude oil (which had been there since the 1973 oil shock). OPEC countries are generally unhappy about this development because every barrel the US exports tends to be 1 barrel OPEN doesn't. But they're also largely powerless to do anything about it.
The Iran War is a massive strategic blunder by the US because it's shown the US has been unable to stop Iran from closing the Strait of Hormuz despite spending $1T+ a eyar on its military but, just as bad, it's shown that the US cannot or will not defend GCC countries or even its own bases in those countries from Iranian counterattacks.
Foreign countries generally pay for US bases as part of a broader security agreement and the idea of joint responsibility for security guarantees. But what if those guarantees are essentially worthless? This will completely reshape the US relationships with GCC countries. The UAE is really just the first domino to fall.
Short-term this smells like the US is either behind this break or at least approves of it. The idea is probably for the UAE to increase production in an effort to stabilize oil prices. This administration has also shown a complete disregard for historic alliances (including NATO) and they probably view OPEC as a cartel they want to break up. But I think this will long-term further destabilize the region and I wouldn't be surprised if some of these governments end up falling or at least break security ties with the US.
If anything, GCC countries will likely see China as a more reliable and stable trading and security partner as a result of all this.
I've seen reporting over the past week or so regarding the US potentially bailing out the UAE to make up for the financial harm and damage it's suffered due to the US-Iran war. How likely do you think it is that the UAE leaving OPEC is a condition for that financial assistance?
So yes, I can see this admin seeing OPEC as a cartel that is against US interests even though OPEC actually stabilizes global oil prices, actively. I also believe it's highly likely that the US wants to crash the global oil market when the Strait eventually reopens ahead of the midterms.
I too have seen the reports of a potential US UAE bailout and that could be leverage here. It's too early to say. It'll take time to realize the consequences of this deal and understand what led up to it and what the real goals are.
The whole war goes beyond miscalculation. It's the worst strategic blunder in US history (IMHO) and it's not even close. In 1973, the worst impacts happened 6 months after the blockade started. Well, guess what's in 6 months? The midterms. Iran is acutely aware of the US domestic politics of this. Iran also knows this is their best possible chance to end economic sanctions. Iran is more prepared to wait this out. Their goal really is to make the cost of this war so high that the US will never again think about repeating it.
But when the Strait does open, which will happen eventually, the UAE will probably go to town so to speak, exporting well above what they might've otherwise as an OPEC member.
My suspicion is that this is what the UAE's move is really about and whY I think the US is giving at least tacit approval if they're not outright behind it.