By Finian Cunningham | Strategic Culture Foundation | March 26, 2021

After six years of blowing up Yemen and blockading its southern neighbor, the Saudi rulers are now saying they are committed to finding peace. The move is less about genuine peace than economic survival for the oil kingdom.

The Saudi monarchy say they want “all guns to fall completely silent”. Washington, which has been a crucial enabler of the Saudi war on Yemen, has backed the latest “peace offer”. Secretary of State Antony Blinken this week endorsed the initiative from the Saudi rulers, saying he had spoken with them “on our work together to end the conflict in Yemen, facilitate humanitarian access and aid for the Yemeni people”.

The Saudi foreign ministry stated: “The initiative aims to end the human suffering of the brotherly Yemeni people, and affirms the kingdom’s support for efforts to reach a comprehensive political resolution.”

Can you believe this sickening duplicity from the Saudis and the Americans?

So, after six years of relentless aerial bombing in Yemen causing the world’s worst humanitarian crisis, according to the United Nations, the Saudis and their American military supplier, seem to have developed a conscience for peace and ending suffering.

The real reason for trying to end the conflict is the perilous state of the Saudi oil-dependent economy. Saudi Aramco, the state-owned oil, gas and petroleum industry, recently announced that its profits have slumped by nearly half in 2020 compared with the year before. Down from $88 billion to $49 billion.

Given that its oil economy provides nearly 90 per cent of state budget that is a stupendous hit on the Saudi finances. The Saudi rulers rely on hefty state subsidies to keep its 34 million population content. With income from the oil industry nosediving that means state deficits will explode to maintain public spending, or else risk social unrest from dire cutbacks.

Saudi Arabia remains the biggest oil exporter, but due to the Covid-19 pandemic and world economies going into recession crude oil prices have plummeted. At one point oil prices fell to around $20 a barrel. The Saudi economy needs an oil price of around $70 a barrel to reel in a profit.

The upshot is the Saudi war in Yemen has become a critical drain on state finances and potentially jeopardizing the superficial stability of the absolute monarchy.

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Via https://alethonews.com/2021/03/27/crashing-saudi-oil-economy-explains-urgent-yemeni-peace-offer/