IRAN IS THE PRIME BENEFICIARY OF THE NEW MIDDLE EAST
A new Middle East is upon us and its primary beneficiary couldn't be happier.
For generations, the stability of global oil supplies has been guaranteed by Saudi Arabia's reserve capacity that could be relied on to make up for any shocks to those supplies due to political unrest or other factors. When Libya's teetering dictator Muammar Ghaddafi decided to shut down Libya's oil exports last month, the oil markets reacted with a sharp increase in prices. The very next day the Saudis announced they would make up the shortfall from Libya's withdrawal from the export market.
In the old Middle East, the Saudi statement would never have been questioned. Oil suppliers and purchasers alike accepted the arrangement whereby Saudi Arabian reserves - defended by the US military -- served as the guarantor of the oil economy. But in the New Middle East, Iran feels comfortable questioning the Saudi role.
With each passing day, the Iranian regime is actively destabilizing Saudi Arabia's neighbors and increasing its influence over Saudi Arabia's Shiite minority in the kingdom's Eastern Province where most of its oil is located.
The Obama administration has failed completely to understand what is happening.