Saudi Arabia has the most to lose from a sharp rise in oil prices | Larry Elliott

With Riyadh dependent on arms supplies from the west, its threat
to weaponise oil no longer works

The Opec oil cartel chose its moment well. Inflationary
pressures had been building in the global economy for years and
stocks of crude were low. With Israel on top in the Yom Kippur war,
Arab oil producers decided to step in. They announced production
cuts and an oil embargo on the US and other western countries.

The decision had far-reaching consequences. Oil prices more than
quadrupled in a matter of months. Inflation rocketed, triggering
demands for higher pay. Rising business costs led to job losses on
a scale not seen since the 1930s. This was the moment, 45 years ago
to the month, when the post-war boom ended and the era of
stagflation began.

Source: FS – All-News2-Economy
Saudi Arabia has the most to lose from a sharp rise in oil prices | Larry Elliott