Saudi-UAE vs America: America has suffered a big blow from Saudi Arabia and UAE regarding the attack on Iran. Both countries opposed Trump’s military plan and withdrew $15 billion from US treasury bonds. Know how economic pressure on America may increase.
Amid growing tension in the Middle East, America has suffered a major setback from its closest allies. In the context of conflict with Iran, Saudi Arabia and the United Arab Emirates (UAE) have taken such steps that have raised questions about both Washington’s strategy and economic strength. On one hand, both countries have started withdrawing billions of dollars from American treasury bonds, while on the other hand, they have also clearly refused to support a possible attack on Iran. Donald Trump himself admitted that the US was just “an hour away” from military action on Iran, but the decision was postponed at the last minute. It is believed that the stance of Saudi Arabia and UAE played a big role in this decision.
Two big shocks to America in 24 hours
America suffered its first blow on the economic front. According to official data, Saudi Arabia has reduced its stake in US treasury bonds by $10.8 billion. After this, Saudi’s total stake in the US treasury has come down to $149.6 billion. At the same time, United Arab Emirates has also withdrawn 5.8 billion dollars. Now UAE’s share in US funds remains at $114.1 billion. Both the countries together have taken out about $15 billion from the US treasury system. This step has been taken at a time when America is already struggling with the pressure of increasing debt, high interest rates and global tension.
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Why is withdrawal of money from treasury bonds being considered a big sign?
US Treasury bonds are considered the safest investment system in the world. America raises money from countries and investors around the world through these bonds and uses the same amount in development plans, defense spending and economic activities. Experts believe that if major oil producing countries continue to withdraw money from US bonds, it could affect the confidence of global investors. The strength of the dollar may also come under pressure and it may become expensive for America to take loans. According to Reuters report, America may have to take loans at higher interest rates due to increase in withdrawals from treasury bonds. In such a situation, there is a possibility of additional burden on the American economy.
Why were Saudi and UAE against the attack on Iran?
According to media reports, Donald Trump was seriously considering military action against Iran. But when America sought support from its regional allies Saudi Arabia and UAE, both the countries clearly refused to cooperate in the war. According to Axios report, both countries warned the US that a direct war with Iran could destabilize the entire Gulf region. Especially, there can be a big threat to oil bases and energy supply. Saudi Arabia and UAE believe that in the event of any major military conflict, the Gulf countries will be the first to suffer the loss. This was the reason why both the countries insisted on dialogue and diplomatic solutions instead of military action.
Now efforts to negotiate on Qatar’s initiative
Amidst the tension, Qatar is now trying to play the role of mediator. According to reports, the possibility of talks between Iran and America regarding a new nuclear deal is being explored. However, Iran has made it clear that it will not compromise under any pressure on issues like Hormuz Strait and uranium transfer. Tehran’s stance is still considered quite strict.
Is the politics of the Middle East changing?
Experts believe that this entire incident indicates that the politics of the Middle East is changing rapidly. Saudi Arabia and the UAE are now giving priority to their economic and security interests rather than simply going along with the US strategy. Although during the escalating tension between Iran and America in February-March, both the countries quietly took action against Iran-backed targets, but not openly supporting the war this time shows that the Gulf countries now want to avoid a major conflict. For America, this is not only a diplomatic challenge but is also being considered an economic warning. Because if the confidence of oil-rich countries weakens, its impact can be directly visible on the dollar and the American economy.
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