Al Arabiya op-ed warns of ‘economic disaster’ if US sanctions Saudi Arabia

Jonathan Ernst | Reuters

President Donald Trump welcomes Saudi Arabia’s Crown Prince Mohammed bin Salman in the Oval Office at the White House in Washington, U.S. March 20, 2018.

Oil prices could surge to all-time highs if the U.S. imposes economic sanctions against Saudi Arabia, according to an opinion piece written by the general manager of Saudi Arabia-based Al Arabiya television.

The warning from Al Arabiya’s Turki Aldakhil comes amid heightened tensions between Saudi Arabia and the West, after journalist Jamal Khashoggi — a U.S. resident and prominent critic of Crown Prince Mohammed bin Salman — disappeared after entering the Saudi consulate in Istanbul on Oct. 2.

Turkish authorities claim Khashoggi was murdered and his body removed. Saudi Arabia has fiercely denied that.

“If U.S. sanctions are imposed on Saudi Arabia, we will be facing an economic disaster that would rock the entire world,” Aldakhil wrote on Sunday.

“It would lead to Saudi Arabia’s failure to commit to producing 7.5 million barrels. If the price of oil reaching $80 angered President Trump, no one should rule out the price jumping to $100, or $200, or even double that figure.”

International benchmark Brent crude traded at around $81.43 Monday morning, up around 1.2 percent, while U.S. West Texas Intermediate (WTI) stood at $72.12, slightly more than 1 percent higher.