Both have much to lose if energy infrastructure is damaged
Saudi-Iran deal first step to boosting regional oil security prospects
But there is less optimism on additional Iranian exports, and many near-term risks remain
The Chinese-brokered deal to restore relations between Saudi Arabia and Iran may not necessarily prevent regional conflict or unlock additional Iran crude, but analysts believe it improves the long-term security of Saudi oil installations. The move will certainly be remembered as Beijing’s first big breakthrough on the Middle Eastern diplomatic scene. But is also an attempt to safeguard its oil purchases, given that it buys a lot of crude from both Saudi Arabia and Iran—even if much of the volume from the latter is not included in official statistics due to sanctions relating to Tehran’s alleged nuclear weapons programme. As a result, much of Iran’s crude trade takes place on the grey market
Also in this section
3 March 2026
The killing of Iran’s Supreme Leader Ayatollah Khamenei in US–Israeli strikes marks the most serious escalation in the region in decades and a bigger potential threat to the oil market than the start of the Russia-Ukraine crisis
2 March 2026
A potential blockade of the Strait of Hormuz following the escalating US-Iran conflict risks disrupting Qatari LNG exports that underpin global gas markets, exposing Asia and other markets to sharp price spikes, cargo shortages and renewed reliance on dirtier fuels
2 March 2026
The South Asian consumer’s next move could tighten the Middle East oil market overnight
2 March 2026
Canadian independent’s evolving portfolio in Trinidad and Tobago gives it access to the Atlantic LNG market and a close-up view of developments in neighbouring Venezuela
