Bloomberg: Saudi Arabia Offers Trade Proposal to Iran on Condition of Halting Support for Proxies

Bloomberg reports that Saudi Arabia is seeking to immediately expand its economic relations with Iran while strengthening ties with the United States, coinciding with the return of Donald Trump, the elected President of the United States, to the White House. The report cites informed sources stating that Saudi Arabia has recently offered Iran a proposal to increase bilateral trade, on the condition that the Islamic Republic ceases its support for proxy forces in the region, including Hezbollah in Lebanon. Bloomberg references the opening of an Iranian booth decorated with Persepolis in one of the most popular areas of Riyadh in recent months for selling carpets and saffron, noting that while the Saudi capital may seem an unexpected place to showcase the culture of the Islamic Republic, Saudi Arabia is striving to strengthen relations with Tehran. After years of severed ties, the two countries restored diplomatic relations last year with Chinese mediation, and Saudi Arabia views the presence of 140,000 Iranian pilgrims at this year's Hajj as a sign of renewed relations, although the Islamic Republic is dissatisfied with the current level of relations and seeks to strengthen it. In this context, Mohammed bin Salman, the Crown Prince of Saudi Arabia, is focusing on a $1 trillion program known as 'Vision 2030', aimed at freeing the country from oil revenues by diversifying the economy, which requires de-escalation and peace with neighbors to attract foreign investments. Bloomberg states it is unclear what proposal Mohammed bin Salman has made to the Iranians, but a person involved in the peace agreement in March 2023 between these two historical rivals mentioned that in the initial phase, trade could focus on 'food and medical products to avoid violating European and American sanctions against Tehran.' According to this source, the agreement may involve Saudi private companies, and transactions could be conducted through a third country such as Iraq. Currently, trade between Iran and Saudi Arabia is minimal, but Iranian officials have expressed a desire to increase this volume to $1 billion per year. Statistics from the Iran Chamber of Commerce indicate that Iran's exports to Saudi Arabia last year did not even reach half a million dollars, while this figure was nearly $160 million in 2014, before the attack on the Saudi embassy in Tehran. The return of Trump and Saudi Arabia's desire for a close relationship with the U.S. Donald Trump is set to return to the White House in January next year and intends to review U.S. Middle East policy, which will likely include reapplying maximum pressure on the Islamic Republic to compel this government to reach a nuclear agreement. Saudi Arabia remains eager to capitalize on efforts for a defense and strategic agreement with the United States, which was halted following Hamas's attack on Israel on October 7 last year. According to three informed sources, Prince Mohammed Salman sent Musaad bin Mohammed Al-Aiban, Saudi Arabia's National Security Advisor, to Washington last month to revive negotiations and secure necessary commitments before Joe Biden leaves the White House in January. These sources cited 'Saudi Arabia's distrust of Iran' as one reason for Al-Aiban's trip to the U.S., noting that one of the topics discussed was designating Saudi Arabia as a 'major non-NATO ally' before the end of Joe Biden's presidency. Bloomberg states that Saudi Arabia considers having close relations with the U.S. and strengthening relations with Iran vital for achieving its economic diversification program goals. To this end, despite its opposition to Hamas and Hezbollah, it has taken a critical stance on Israel's attacks on Gaza and Lebanon and condemned Israel's recent attack on Iran. Additionally, a trilateral committee of Iran, Saudi Arabia, and China met on November 19 this year (about 10 days ago) in Riyadh and emphasized strengthening relations between Iran and Saudi Arabia. The Chief of Staff of the Saudi Armed Forces also visited Tehran about three weeks ago, and Saudi Arabia recently participated in a joint military exercise in the North Indian Ocean alongside the armies of Iran, Russia, Oman, and several other regional countries. Hanin Qadir, a senior expert at the Washington Institute for Near East Policy, noted that Saudi Arabia's harsh criticism of Israel is meant to appease Saudi citizens and other Muslims worldwide; otherwise, Riyadh does not shed tears over weakening Hamas and Hezbollah. According to her, 'internal security and the development of economic goals' are the top priorities for bin Salman.