Biden admin officials consider discouraging U.S. companies from expanding business ties with Saudi Arabia
Biden admin officials are considering trying to discourage U.S. companies from expanding ties with Saudi Arabia in response to the OPEC cut to oil production.
WASHINGTON — Biden administration officials are considering trying to discourage American companies from expanding business ties with Saudi Arabia as part of a U.S. response to a recent Saudi-led push by oil-producing countries to cut global production, said three current and former U.S. officials familiar with the discussions.
The administration also will not send any U.S. official to Saudi Arabia’s annual Future Investment Initiative conference in Riyadh next week, officials said, although a senior administration official said the determination was made before the OPEC+ alliance announced Oct. 5 that it would cut oil production by 2 million barrels a day. The official said the administration was unable to make scheduling work to send a U.S. government official to the high-profile conference, sometimes referred to as “Davos in the desert,” which has been a prized event for Saudi Arabia’s de facto leader, Crown Prince Mohammed bin Salman.
Exploring ways to use American businesses as leverage against Saudi Arabia comes as President Joe Biden says he’s re-evaluating his administration’s relationship with the kingdom and considering how to retaliate against Riyadh over the oil production decision. The current and former U.S. officials said no decisions have been made about whether to proceed with such an effort. They said it’s just one of the options under consideration as Biden considers how to balance responding with not undermining some core U.S. objectives in the Middle East, namely uniting Israel and its Arab neighbors against Iran.
The thinking behind a move to pull back American business investment in Saudi Arabia is that it could influence the kingdom without directly affecting U.S. security in the region, but it also would come with a risk that U.S. businesses won’t listen.
Michael Crowley: Saudi Arabia 'always' had 'a lot of leverage’ in its relationship with the U.S.Oct. 11, 202204:39As of now, American companies are set to appear in full force at next week’s Future Investment Initiative conference, which has drawn business executives, investors and government officials. The event has been a platform for the crown prince, also known as MBS, to showcase business opportunities in the kingdom.
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