The race for influence in West Asia 

Atul Aneja | The Hindu | 03 January 2008

http://www.hindu.com/2008/01/03/stories/2008010355201000.htm

The full impact of the observations in the National Intelligence 
Estimate (NIE) report — produced collectively by Washington's 
numerous intelligence agencies — on the Iranian nuclear programme is 
still unfolding. However, it is evident that after the release of 
the report, according to which Iran has not had a nuclear weapons 
programme since 2003, power equations in the world's oil heartland 
are shifting dramatically. 

Iran, fourth largest producer of oil, and Saudi Arabia, global 
leader, are rapidly consolidating their political influence in the 
region. The other countries that are also enhancing their 
geostrategic profile in West Asia's energy bastion include Russia 
and China. After voting twice against Iran in the International 
Atomic Energy Agency — apparently at Washington's behest — India 
also appears to be making a belated attempt at mending fences with 
Tehran. For the first time after World War II, the United States is 
struggling to retain its substantial politico-military influence in 
the region.

Iran and Saudi Arabia, along with Iraq and the rest of the Persian 
Gulf states — Kuwait, Qatar, Bahrain and Oman — hold the largest 
reserves of oil in the world. Any change in the international 
pecking order in this region, therefore, is bound to have a profound 
impact on the world's economy and politics. 

The NIE's findings have already unhinged the case for war against 
Tehran. Its conclusion that Iran ceased its weapons programme in 
2003 implies that Tehran does not pose a nuclear threat to anyone in 
the near future. The findings have also weakened the case for 
tightening sanctions. 

The NIE's clean chit appears to have raised by several notches the 
relatively low-key interaction between Saudi Arabia and Iran. Both 
countries exercise enormous influence in their constituencies in the 
region. Saudi Arabia is now widely recognised as the de facto leader 
of the Arab world. It has taken the lead in trying to resolve the 
Arab-Israeli dispute. The 22-nation Arab League has already adopted 
the plan of the Saudi monarch, Abdullah bin Abdulaziz, to resolve 
the Israel-Palestine dispute. Riyadh also exercises considerable 
clout because of the key role it can play in the global oil markets. 
Besides, Saudi Arabia is the birthplace of Islam and two of the 
holiest shrines revered by Muslims the world over are in the 
Kingdom. The footprint of Saudi influence is, therefore, seen far 
and wide.

There have been significant changes in the foreign policy of Saudi 
Arabia, known for long as a faithful U.S. ally, after King 
Abdullah's accession in 2005. The new monarch adopted a "look east" 
policy, which became evident when he chose India, Malaysia and China 
for his first overseas visit. Stepping out of line from the 
Washington-led peace process on Palestine, King Abdullah engaged 
both the Fatah and rival Hamas on its home turf in order to persuade 
them to form a national unity government. He met with some success 
when the factions agreed in Makkah to accept a political compromise 
despite Washington's strong opposition to the deal. 

Despite the setback the initiative suffered when bitter street 
battles broke out in Gaza and led to the virtual partition of 
Palestinian territories between the Fatah and Hamas, the Saudi 
monarch has not given up. Hamas leader Khalid Meshaal recently 
revisited Saudi Arabia and met King Abdullah. Efforts are being made 
to revive talks between Hamas and the Fatah, in order to advance the 
Saudi Arbia-initiated Makkah peace process.

Iran, on the other hand, exercises unique influence, especially 
among the region's Shia population. Its substantial influence in 
Bahrain, a country with a majority Shia population and Sunni 
leadership, is well known. Iran is also a player in oil-rich Kuwait. 
Besides, ties between Iran and the Hizbollah in Lebanon are 
extremely close. The Hizbollah's profile in Beirut as well as the 
region rose dramatically after it blunted the Israeli attack on 
Lebanon in August 2006.

Saudi Arabia and Iran began to work closely together after sectarian 
violence in Iraq inflamed the region. Lebanon became the first 
nation in which both countries decided to coordinate their 
activities in order to heal its growing sectarian and religious 
divide. While the Iranians were well positioned to influence the 
Shias under the Amal and Hizbollah movements, the Saudis could 
exercise clout over the wealthy Sunni community, which had made 
considerable investments in Saudi Arabia and vice versa. The 
interaction proved fruitful and now helped internal factions narrow 
down their differences over a consensus candidate for the vacant 
Lebanese Presidency. 

Tehran and Riyadh also worked with some success in Iraq, where the 
Saudi intelligence could exercise its influence over some of the Al 
Qaeda tribal groups. Iranian influence among Iraqis, especially the 
Shias and Kurds, is well recognised. 

Resilience evident 


The resilience of the Saudi-Iranian relationship became evident soon 
after the Annapolis conference held on November 27, 2007. Despite 
the stated American efforts to build an Arab front against Iran at 
the conference, the events on the following days showed that forces 
negating Washington's exhortations gained the upper hand. Just after 
the conference, the six-nation Gulf Cooperation Council took the 
dramatic step of inviting Iranian President Mahmoud Ahmadinejad to 
its annual summit in Doha. King Abdullah led him by the hand to the 
conference — a rare gesture of solidarity between the two regional 
heavyweights. 

The conference began the very day the NIE report was released. The 
Saudis wasted no time in taking advantage of its findings. At the 
conference, Mr. Ahmadinejad spoke of evolving a collective security 
arrangement with Iran's neighbours. The implication was obvious. On 
an Arab platform, Iran was saying it wanted to step inside the 
region with its neighbours, and, implicitly, marginalise the 
presence of American military forces, which have played a 
preponderant role in the oil rich region for the past few decades.

Besides, the Iranian leader invited Gulf businessmen to invest in 
his country, in areas that included real estate. Iranian businessmen 
have made substantial investments in Dubai and reside in the Emirate 
in large numbers. A nucleus which can carry out investments in Iran, 
therefore, already has a significant presence in the Gulf, 
especially Dubai.

Keeping up the high momentum in their relationship, King Abdullah 
and President Ahmadinejad met again in Makkah during the Haj. 
Commenting on the visit, Iran's ambassador to Saudi Arabia, Mohammad 
Hosseini, insightfully said: "Iran and Saudi Arabia, as two leading 
countries in the region and in the Islamic world, shoulder a heavy 
responsibility. The two countries have reached a mutual 
understanding not to limit their ties exclusively to bilateral 
issues."

Apart from the growing regional assertion by Saudi Arabia and Iran, 
Russia has moved in swiftly after the release of the NIE report. 
Less than 24 hours of its publication, Moscow announced that it was 
dispatching the first consignment of nuclear fuel for Iran's Bushehr 
atomic power plant. Russian Foreign Minister, Sergey Lavrov, 
rejected calls for tougher economic sanctions on Iran in the light 
of fresh U.S. intelligence data. Besides, the Russians began 
military exercises in the Mediterranean, deploying 11 ships 
including an aircraft carrier with 47 planes on board. The Russian 
navy is reportedly using the Syrian port of Tartus as a supply base 
for its ships operating in the Mediterranean.

China has also made further inroads into Iran after the release of 
the NIE report. Despite the U.S. insistence on sanctions, the China 
Petrochemical Corporation on December 10 signed a $2-billion deal 
with Iran to develop its Yadavaran oilfield. Encouraged by the NIE 
findings, the Iranians are now seeking Japanese investments to 
develop their oil sector.

India, too, has sought to reengage Iran. Foreign Secretary Shiv 
Shankar Menon visited Tehran in mid-December. He was quoted as 
saying there that India "is interested in establishing a strategic 
partnership with Iran in the areas of energy, transport, and 
security." 

However, India's non-participation in the recent meetings on the 
Iran-Pakistan-India gas pipeline project and the perception of its 
growing proximity to the U.S. have not gone down well with Iran. At 
his meeting with Mr. Menon, Iran Foreign Minister Manouchehr 
Mottaki, in fact, noted that the "low level" of ties between the two 
great regional countries over the past two years was "lamentable." 
He added: "We should not let any foreign powers to harm the existing 
ties between the two countries."

Given the growing assertion of Saudi Arabia and Iran, as well as the 
intention of Russia and China to enhance their profile in the 
region, the release of the NIE report may well mark the beginning of 
Washington's post-Cold War decline in West Asia.



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