Strategic Implications of the Surge in Oil Prices

Assuming that oil prices remain at their current high levels, there are several possible ramifications:

The enrichment of the oil-producing states and the growing dependence on Arab oil will strengthen those states politically, particularly in the eyes of oil importers, including those in Asia whose role in global affairs is growing. Moreover, some companies may prefer not to do business with Israel or invest in Israeli companies in order not to harm ties with Arab states and Iran. At the same time, political use of the oil weapons is not likely in the foreseeable future given the lack of solidarity in the Arab world and the state of relations between the oil-producing states and the West.

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