Saudi Arabia Vs. Iran: An Emperor without his clothes?


2 (100%)
Recently Saudi Arabia executed a Shi'a cleric when they were cautioned against it by Iran.  Iran got into an uproar about it and kicked(can't remember if they set fire to it as well) people out of the Saudi embassy there.  This in turn saw SaudI Arabia make a motion to cut off ties with Iran as well as a number of Sunni countries responded in turn.

I apologize for the oversimplification of this.

My question is this....Do you believe this feud/fight/whatever will finally have the average American see what a genuine pain in the ass the Saudi's are, especially our interests?  I mean the Wahbism they advocate in Saudi Arabia in turn leads to funding these nasty terrorist groups responsible for 9/11, the bombing of the USS Cole and Isil.

No, there is not much sympathy for the Shia in the region, and for arab nationalists, a majority of the Shia aren't arab, which further distances them.

The answer to the OP's question is that the American people already know that the middle east is largely a boondoggle for us.  Also, you forgot to mention that Saudi Arabia "accidentally" dropped bombs on the Iranian embassy in Yemen.

The more interesting question is, what does this do to oil prices?  In the past, conflict in the middle east would create spikes in prices because of fear of supply disruption.  Now that the US has a treaty with Iran, they'll be exporting oil soon.  They promised to pump 500k barrels/day day 1 after the embargo is dropped then add another 500k over the next year or so.  The oil market is already oversupplied and OPEC said (in December) that they were getting rid of the cap.  Meaning that they were no longer going to limit the amount of oil that countries were pumping (even though they often cheated).  Shale oil in the US has doubled our production in the last 4-5 years (from 5 million barrels a day to 10 million).  The recent problems between Saudi Arabia and Iran has done nothing to prices and they have actually come down 10% this week alone.

So my answer to what will happen because of this conflict?  Counter-intuitively, prices will fall further.  When OPEC first started flooding the market with oil, they thought they could bankrupt the shale drillers (or at least that's what most people thought they were trying to do) but they didn't count on US companies innovating.  Prices for shale oil is lower - a lot lower - than it was even a year ago.  On top of that, bankruptcy in America means nothing.  One of the shale drillers recently went under and the bondholders simply took possession of the company.  Bankruptcy doesn't stop shale oil, it just changes ownership of the wells and equipment.  Last - the price of solar has come down massively - 70% since 2009.  The recent budget that passed continues the tax credits for another 5 years which will allow this industry to scale up further.  This doesn't do much for oil but natural gas and coal are in trouble.  Battery technology is finally getting better and it's possible that we'll have better electric vehicles in the mid 2020's.  Toyota has said that they expect almost no cars to be gas by 2050. 

So renewable and batteries are dropping.  Shale oil is not collapsing as they had expected.  Over the next 35 years we'll transition largely to electric vehicles.  Meanwhile Saudi Arabia has hundreds of billions of barrels of oil it can pump.  At some point they ask themselves, do we want to pump it and sell it while it has value or hope all this shit falls through and we'll be selling oil for the next 200 years?  I think the answer is obvious.  Oil prices are not going up again and over the next few decades we're going to see some real problems in the middle east because these countries haven't diversified their economies to be more than just resource extraction based.

bread's done