How will the Saudi Arabia-Iran face-off impact oil market?

By FXStreet FXStreet (Mumbai) – It is common knowledge that Iran and Saudi Arabia are the primarily followers of the Shiite and Sunni sects in the middle-east region. When Saudi Arabia executed Nimr al-Nimr, a prominent Shiite cleric on Saturday they further stoked fears of another crisis in the already disturbed and war torn region. Iran’s Supreme Leader Ayatollah Ali Khamenei warned “divine revenge” awaits the Sunni Muslim kingdom as the act has angered Shia Muslims elsewhere in the Middle East.

Following his execution a wave of protests broke out. Iranian protestors stormed the Saudi embassy in Tehran, destroyed property and set fire. Saudi Arabia’s embassy in Baghdad was attacked as well. Iran accused Saudi Arabia of fanning tension in the region. Iran’s foreign ministry spokesman, Hossein Jaber Ansari told the Iranian state news agency “The Saudi government supports terrorists and takfiri [radical Sunni] extremists, while executing and suppressing critics inside the country”. Saudi government yesterday declared the kingdoms’ decision to severe diplomatic ties with Iran.

The blame game is at its peak. Saudi Foreign Minister Adel al-Jubeir accused Iran of distributing “weapons and planted terrorist cells in the region”. Iranian officials also expressed their contempt for the Saudi’s support for Islamist groups.

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Source:: FX Street