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The Strategic Partnership between the United States and Saudi Arabia

Exploring the strategic and economic partnership between the United States and Saudi Arabia, this overview highlights key moments such as the 1933 oil concession, the historic 1945 meeting between President Roosevelt and King Abdulaziz, and the strengthening of ties during the Cold War. It delves into the political and economic foundations of the alliance, including the petrodollar system and the central role of oil in shaping bilateral relations.

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1

The ______ and ______ formed a strategic partnership starting in the early ______ century.

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United States Saudi Arabia 20th

2

In ______, Standard Oil of California secured an exclusive 60-year deal to ______ and ______ oil in Saudi Arabia.

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1933 explore extract

3

US-Saudi strategic importance post-WWII

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Saudi Arabia valued as a counter to Soviet influence during Cold War.

4

Basis of US-Saudi bilateral relationship

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US sought oil; Saudi Arabia needed security and military support.

5

US-led coalition's role in Gulf War for Saudi Arabia

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Defended Saudi Arabia in 1990-91, enhancing security cooperation.

6

Since the ______, Saudi Arabia has been crucial in countering ______-aligned countries in the Middle East for the US.

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Cold War Soviet

7

US Role in Saudi Stability

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US provides military and political support to ensure Saudi sovereignty and regional stability.

8

Joint Efforts in Major Conflicts

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US-Saudi collaboration was pivotal in the Gulf War and post-9/11 War on Terrorism for regional peace.

9

______'s significant role in ______ contributes to the stabilization of global oil prices, indirectly benefiting the US dollar.

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Saudi Arabia OPEC

10

Carter Doctrine significance

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1980 policy promising US military action to defend Persian Gulf against hostile forces, reinforcing US commitment to Saudi security.

11

Impact of Islamic Revolution on US-Saudi ties

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1979 Iranian revolution heightened regional instability, prompting closer US-Saudi strategic cooperation against common threats.

12

Role of GCC in US-Saudi relations

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1981 establishment of Gulf Cooperation Council strengthened political and economic ties, aligning regional policies with US interests.

13

The establishment of the ______ system is one of the key events in the history of the US-Saudi oil-based relationship, alongside the 1970s ______ and the post-World War II increase in demand.

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petrodollar oil embargo

14

Saudi Arabia's key resources during Cold War

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Vast oil wealth crucial for US to counter Soviet influence in Middle East.

15

Saudi Arabia's role in regional organizations

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Active in Arab League and OPEC, bolstered by US to strengthen geopolitical stance.

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The Origins of US-Saudi Relations

The United States and Saudi Arabia, despite their distinct cultures and historical backgrounds, have developed a strategic and economic partnership that commenced in the early 20th century. The first formal contact occurred in 1931, leading to the opening of a diplomatic mission in Jeddah in 1944, which was elevated to an embassy in 1948. The King-Crane Commission report of 1919 had identified the potential strategic importance of the Kingdom in the Middle East. The US adopted a neutral stance during the territorial disputes that shaped Saudi borders. The relationship was cemented with the 1933 oil concession agreement between Standard Oil of California and the Saudi government, which provided exclusive rights to explore and extract Saudi oil for 60 years.
Handshake between a person in a Western business suit and another in a Saudi thobe and shemagh, symbolizing cross-cultural agreement.

Strengthening of a Strategic Alliance

The US-Saudi alliance was significantly reinforced after World War II, highlighted by the historic meeting between President Franklin D. Roosevelt and King Abdulaziz in 1945. This meeting underscored the strategic importance of Saudi Arabia, especially as a counter to Soviet influence during the Cold War. The bilateral relationship was predicated on the US's demand for oil and Saudi Arabia's need for security and military support, as demonstrated by the US-led coalition's defense of Saudi Arabia during the Gulf War of 1990-91, which expanded the security aspects of their partnership.

The Intersection of Politics and Economics

The longstanding US-Saudi relationship is underpinned by the Kingdom's strategic location, mutual interests in oil, and a shared goal of addressing common threats. Since the Cold War, Saudi Arabia's geopolitical significance has been pivotal in balancing against Soviet-aligned nations in the region. The US has consistently sought Saudi cooperation in mitigating regional threats and has utilized Saudi territory for military operations, thereby advancing American strategic interests.

Political Foundations of the US-Saudi Relationship

The political ties between the US and Saudi Arabia are complex, involving regional security, counterterrorism, and the maintenance of a stable power dynamic in the Middle East. The US extends military and political support to safeguard Saudi stability and sovereignty. This collaboration has been crucial in combating terrorism and fostering regional peace, with significant cooperative efforts during the Gulf War of 1990-91 and the post-9/11 War on Terrorism.

Economic Ties and the Petrodollar System

The economic relationship between the US and Saudi Arabia is highlighted by the petrodollar system and Saudi Arabia's role in the Organization of the Petroleum Exporting Countries (OPEC). The petrodollar system, established in the 1970s, mandates that oil is priced in US dollars, sustaining demand for the currency and reinforcing the bilateral alliance. Saudi Arabia's influence in OPEC helps stabilize global oil prices, which indirectly bolsters the US dollar. The extensive reciprocal investments, including the operations of the Saudi Arabian Oil Company (ARAMCO) and Saudi holdings in US securities, reflect the depth of their economic interdependence.

The 1980s: Deepening Alliances and Economic Expansion

The 1980s marked a pivotal era in US-Saudi relations, with regional events such as the Islamic Revolution in Iran and the Iran-Iraq War emphasizing the need for a closer strategic partnership. The Carter Doctrine, announced in 1980, promised US military intervention to protect the Persian Gulf from hostile forces, signaling strong support for Saudi Arabia. The formation of the Gulf Cooperation Council (GCC) and the growth of economic connections, including Saudi investment in US treasuries, further cemented the alliance.

The Central Role of Oil in US-Saudi Relations

Oil has been a cornerstone of the US-Saudi relationship, with the Kingdom's abundant reserves and America's energy needs driving their interactions. The control of oil has been a significant factor in global politics and economics, with energy security as a critical concern. The relationship's focus on oil began with the 1930s concession and has persisted through various political eras, including the post-World War II demand surge, the 1970s oil embargo, and the creation of the petrodollar system.

The Cold War Impact on the US-Saudi Strategic Alliance

The Cold War period was instrumental in shaping the US-Saudi strategic alliance, as the ideological battle between the East and West transformed global partnerships. Saudi Arabia's vast oil wealth and strategic position made it a vital ally for the US in preventing the spread of communism in the Middle East. The Kingdom's involvement in regional entities such as the Arab League and OPEC, supported by the US, established it as a central figure in the geopolitical landscape of that era.