Saudi Arabia – Geopolitical Storm

Regardless of the facts of the case, a major point of tension between the U.S. and Saudi Arabia could result in substantial change. Volatility in the gulf, and around the world, could result from any major break in the alliance. While Trump is looking to preserve relationships, Congress is likely to be split. We believe that the biggest risk is that the US$ is undermined and some oil contracts are priced in RMB or EUR.