Link to article: https://www.reuters.com/markets/stocks/gulf-markets-pressured-by-lower-oil-prices-abu-dhabi-hits-record-high-2022-02-17/
New reports have come in claiming pressure has been felt by gulf states with falling oil prices. All countries in that region have felt the pressure except Saudi Arabia who has still been positive ending its session with some of the highest numbers since 2006. The oil prices have been falling amidst the closing up of Iranian nuclear deal with the US which would allow Iranin crude oil back into the market. This possible dilution and disruption of the market has put pressure on every gulf state. Prices are not suspected to fall too low because of the Russia Ukraine tension which has strained energy supply to the EU.
My take on the article is that the gulf markets are adjusting for a likely return of Iranin oil trade. They have dropped prices for dilution of supply.This comes after Iran and US nuclear deal talks. This re-entrance of Iran will put strain on many Gulf states where they will have to continue to compete with regional tyrants. But with that bad news, the development in Russia has put massive pressure on its pipelines to the west which could put millions in danger. This is possible;it might give these gulf states an opportunity to assert themselves even more deeply into energy trade/supply. This more open market would boost energy trade in the gulf as they are aiding energy needs worldwide, for many developed nations.
This topic relates to our class with ideas of Complex interdependence. The idea of complex interdependence stems from liberal theory and is one part of the Kantian triad. This theory states that cooperation and interdependence of nations is key to a prosperous world. With that idea in mind, this is relevant to the international energy trade. With the Russians busy with a possible invasion it puts their pipelines at risk and with heavy reliance on that energy by the west, it opens up a huge gate for gulf states. The disruption of one line of trade has opened more doors for others. But the inverse has also occurred with the suspected re-admittance of Iran into the oil trade. This messes up the trade with new oil diluting the supply, Iran with their nuclear program, and oil has disrupted the status quo.