Saudi Press

Saudi Arabia and the world
Friday, Jul 11, 2025

Saudi prince, rebuked by West, faces dilemma over Russia and China

Saudi prince, rebuked by West, faces dilemma over Russia and China

The United States and Britain are ramping up pressure on Saudi Arabia to pump more oil and join efforts to isolate Russia, while Riyadh has shown little readiness to respond and has revived a threat to ditch dollars in its oil sales to China.

British Prime Minister Boris Johnson flew into the world's biggest crude oil exporter on Wednesday, a day after U.S. security advisor Brett McGurk arrived with a U.S. delegation.

Saudi Arabia and its neighbour the United Arab Emirates, which are among just a handful of producers with spare capacity, have snubbed Western calls for more crude to cool red-hot prices and have stuck to an OPEC+ supply pact with Russia and others.

Crown Prince Mohammed bin Salman, the kingdom's de facto ruler, has faced sharp Western criticism over the 2018 murder of Saudi journalist Jamal Khashoggi, Riyadh's human rights record and the Yemen war. U.S. President Joe Biden has, so far, refused to deal directly with the prince, who is widely known as MbS.

With U.S-Saudi relations at a low point, MbS has responded by strengthening ties with Russia and China, even though the kingdom still has close security ties with Washington.

McGurk and other U.S. officials met senior Saudi officials on Tuesday, pressing them to pump more oil and find a political solution to end the war in Yemen, where Saudi-led forces are battling the Iran-backed Houthi group, two sources said.

"You would be wrong if you think Washington would give up on these two files," one of the two sources, who is familiar with the discussions, told Reuters.

A senior U.S. administration official said McGurk was in the Middle East "discussing a wide range of issues, including Yemen", but declined to elaborate.

The British prime minister, meanwhile, described Saudi Arabia and the UAE as "key international partners" in the effort to wean the world off Russian hydrocarbons and put pressure on Russian President Vladimir Putin after Moscow invaded Ukraine.

But Abdulkhaleq Abdulla, a prominent Emirati political analyst, said Johnson should not expect much. "Boris will go back empty handed," he wrote on Twitter.

The Saudi government did not immediately respond to a Reuters request for comment on the U.S. and British visits.

For now, Saudi Arabia has shown no sign of abandoning an oil supply pact forged between the Organization of the Petroleum Exporting Countries and allies, including Russia, which has seen the group known as OPEC+ hiking oil output only gradually.

SHORT SHRIFT


At the last OPEC+ meeting on March 2 - less than a week after Russia invaded Ukraine and as the West ratcheted up sanctions on Moscow - ministers dodged the Ukraine issue in talks and swiftly agreed to stick to existing policy.

Meanwhile, Riyadh has signalled it wants closer ties with Beijing by inviting Chinese President Xi Jinping to visit this year. The Wall Street Journal said Saudi Arabia was in talks to price some crude it sells to China in yuan.

"If Saudi Arabia does that, it will change the dynamics of the forex market," said a source with knowledge of the matter, adding that such a move - which the source said Beijing had long requested and which Riyadh threatened as far back as 2018 - might prompt other buyers to follow.

The Saudi energy ministry declined to comment, while state oil giant Saudi Aramco did not respond to a request for comment.

One diplomat said Riyadh was turning to "old threats" to push back at the West, although the diplomat and others say any shift to the yuan would face practical challenges, given crude is priced in dollars, the Saudi riyal is pegged to the greenback and the yuan does not boast the same role as a reserve currency.

"It would be reckless, given global oil pricing in dollars and the currency peg, not to mention the amount of Saudi debt priced in dollars, its reserve assets in dollars and their holdings of U.S. equities," said Karen Young, a resident scholar at the American Enterprise Institute.

"There may be some contracts in yuan between Saudi Arabia and China, but there is no reorientation of Saudi monetary policy," she said.

The Saudi central bank had assets worth $492.8 billion at the end of January, including $119 billion in U.S. Treasuries.

The government had foreign currency debt - mostly in dollars - of $101.1 billion at the end of 2021, while the Saudi sovereign wealth fund held $56 billion in U.S. equities.

Monica Malik, chief economist at Abu Dhabi Commercial Bank, said Saudi Arabia could slowly shift some sales to yuan. "A gradual shift would have a limited impact," she said.

And even as U.S. officials were meeting in Riyadh, the U.S. State Department said on Tuesday that Washington was not asking its allies to choose between the United States and China.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
×