Riyadh has been caught off guard by the thirst for revenge from US politicians. And Saudi officials are hinting at payback — including dumping US debt — that could have huge ripple effects in financial markets and the real economy.
Neither side is even trying to hide the tension. After a top Saudi official suggested the kingdom has decided to be the more mature party, a top White House official responded by saying, “It’s not like some high school romance here.”
What happens next is critical.
If this decades-old relationship devolves into a full-blown break-up, there could be enormous consequences for the world economy, not to mention international security.
“This is a new low. We have seen a degradation in the US-Saudi relationship for years but this is the worst it’s been,” said Clayton Allen, director at the Eurasia Group.
So much for that secret deal
The spat is linked to one of the biggest sore spots among voters during the Biden era: Inflation and high gas prices.
After trying…
