Saudi Arabia has officially ripped its ties to Iran. The tension was fueled by the the execution of the Saudi Shia cleric Sheikh Nimr al-Nimr and is now affecting the oil prices as well.
The attack on the Saudi Arabia embassy was said to be a piece of a dangerous pattern of secretarian policies that is in the pipeline and must be confronted to preserve security and stability in the region, BBC shared in a report.
United Arab Emirates (UAE) claimed that they will be downgrading their diplomatic representation in Tehran, affecting Iranians who are currently working in the country.
According to The Guardian, the quick escalation of tensions between Saudi Arabia and Iran had a prompt effect. Outrage has been reported among Shia communities all across Middle East including in south Asia at the expense of Sheikh Nimr al-Nimr's death.
Sheikh Nimr al-Nimr is a prominent critic of Saudi and Bahrain - including its monarchies. He was a prisoner since 2012 and stood up for causes that have been championed by Tehran and United Nations respectively.
The tension between the two regions did not only affect the people but the oil prices as well. The cost of oil has reportedly become volatile since Saudi Arabia and Iran cut ties with each other. Oil prices tend are reportedly expected to spike with this spat making Traders worried about disruptions to supplies.
However, CNN predicts that this might end up oppositely, pushing oil prices cheaper in the long run as it is less likely for Saudi Arabia and Iran to work together to support prices.
Both are likely to keep pumping oil at a breakneck pace, contributing to the global supply glut that has kept prices at very low levels in recent months.
Saudi Arabia and Iran are known to be major oil-producing countries in the global basis.
