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4 Jan 2016
Further instability in Middle East
FXStreet (Guatemala) - A very delicate and surprising twist has occurred over the weekend in the Middle East.
Saudi Arabia has announced that they are severing ties with Iran after the attacks on the Saudi embassy in Tehran amid protests of Saudi Arabia's execution of a Shiite cleric.
Saudi Arabia already saw Iran as its biggest rival in the region and there are several proxy conflicts between the two that are playing out in the Middle East, from Yemen to Syria. This latest execution could further inflame an already intense sectarian divide and widen the Sunni-Shia divide heightening unrest in the Middle East and weigh on the price of oil and commodity linked currencies.
Saudi Arabia has announced that they are severing ties with Iran after the attacks on the Saudi embassy in Tehran amid protests of Saudi Arabia's execution of a Shiite cleric.
Saudi Arabia already saw Iran as its biggest rival in the region and there are several proxy conflicts between the two that are playing out in the Middle East, from Yemen to Syria. This latest execution could further inflame an already intense sectarian divide and widen the Sunni-Shia divide heightening unrest in the Middle East and weigh on the price of oil and commodity linked currencies.