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IPFS News Link • Trump Administration

Trump Sending Pompeo To Saudi Arabia After Speaking To Saudi King

• Zero Hedge - Tyler Durden

According to Trump, the King also said that "they are working closely with Turkey to find answer" and added that he is "immediately sending" Secretary of State Mike Pompeo "to meet with King."

Trump's tweet follows an escalation in rhetoric in which the president threatened Saudi Arabia with severe punishment if it is found that the Saudis were involved in Khashoggi disappearance and/or death, sending Saudi stocks plunging the most since 2016.

In response, Riyadh made a not so veiled threat to use the kingdom's oil wealth as a political weapon - something which Bloomberg said was "unheard of since the 1973 Arab embargo that triggered the first oil crisis."

On Sunday, Saudi Arabia said on Sunday it would retaliate against any punitive measures linked to the disappearance of Washington Post columnist Jamal Khashoggi with even "stronger ones." In an implicit reference to the kingdom's petroleum wealth, the statement noted the Saudi economy "has an influential and vital role in the global economy."

Additionally, the fact that the Arabiya article was published only minutes after Saudi Arabia's press release was issued led many to conclude it was either a message conveyed outside diplomatic channels or a trial balloon that quickly went flat.

Roger Diwan, a longstanding OPEC watcher at consultant IHS Markit Ltd., said the Saudi comments broke "an essential oil market taboo."

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