It seems that the first round in the series of the ferocious battles between Iran and Saudi Arabia, the two giant oil-exporting countries, was settled in favor of the latter.
The Kingdom continued to produce oil regardless of the Iranian threats warning the Kingdom against filling the shortage in oil supplies that might result from the absence of Iran in the market. Iran, however, did not dare to close down the Strait of Hormuz nor did it attack the GCC oil installations, as it had threatened.
About a week ago, the Western embargo on Iran’s oil began. The oil prices did not rise to $200 a barrel, as the Iranians had been speculating. The Iranian leadership was counting on the price rise to force the world to give up the idea of banning its oil exports as a weapon against it. The opposite actually happened. Before the ban was imposed on Iran’s oil exports, prices dropped by about $10 to reach $90 a barrel. Although it increased later, it never reached the levels Iran was hoping for.
