As U.S. President Barack Obama seeks to reinvigorate his administration’s policy in the Middle East, he will have to contend with several issues where U.S. influence is less than overwhelming.

Chief among them, according to Middle East analysts, is the growing assertiveness of Saudi Arabia as it confronts Iranian influence in the region and tilts away from its historic bargain with the U.S.: oil for security.

In recent months, the Saudis have essentially taken the gloves off — sending troops into Bahrain to prop up the island’s Sunni monarchy against a rebellious Shiite majority; consolidating their relationship with Pakistan as a regional counterweight to Iran; and expanding the Gulf Cooperation Council (GCC) to reinforce the club of Sunni monarchies.

Through the GCC Saudi Arabia has also moved to resolve the crisis in Yemen, its neighbor to the south, where al Qaeda is establishing a foothold and where the Saudis suspect Iranian meddling.

Their core mission, says Ian Bremmer, president of the Eurasia Group, “is to ensure stability in their neighborhood.” Bremmer believes “the single most important long-term implication of the Arab Spring may be a consolidated GCC that is tacking away from the West.”

At the same time, the Saudi kingdom’s relations with the United States have deteriorated — in part over the Obama administration’s support for pro-democracy movements in the Arab world. On two occasions in recent months, according to well-placed sources in the Gulf, King Abdullah of Saudi Arabia even refused to meet senior U.S. officials.

Earlier this week, Saudi grievances were laid out in a Washington Post op-ed by Nawaf Obaid, a consummate insider and a senior fellow at the King Faisal Center for Research and Islamic Studies. Describing a “tectonic shift” in the Saudi-U.S. relationship, he complained of an “ill-conceived response to the Arab protest movements and an unconscionable refusal to hold Israel accountable” for its settlement-building in Palestinian territories. On the latter issue, he said the U.S. “had lost all credibility.”

Obaid also echoed some of the criticisms made last year by Prince Turki al Faisal, a former ambassador to the United States who said that “negligence, ignorance and arrogance” had cost America the “moral high ground” it held after 9/11.

Saudi alienation from Washington predates the Obama administration. Riyadh saw the invasion of Iraq as a disaster because it unleashed Shiite influence in a country traditionally dominated by its Sunni minority. Several Saudi officials have described Iraqi Prime Minister Nuri al Maliki — who leads a Shia-dominated government — as an “Iranian agent.”

The Saudis also complained that the Bush administration had “dropped the ball” on the Israel-Palestinian peace process by not endorsing King Abdullah’s plan for a two-state solution, with east Jerusalem as the Palestinian capital. That, they argued, had only strengthened more radical forces in the region, such as Hamas and Hezbollah.

Above all, the Saudi establishment has long been anxious that the threat it perceives from Iran is not adequately acknowledged in Washington.

U.S. diplomatic cables obtained by WikiLeaks and published last year showed growing Saudi impatience with U.S. caution toward Iran’s nuclear program, with King Abdullah quoted as urging Gen. David Petraeus to “cut off the head of the snake” during a meeting in April 2008. A year later, the King is quoted as telling President Obama’s counterterrorism adviser, John Brennan, that he hoped the U.S. would review its Iran policy and “come to the right conclusion.”

So now, Obaid writes, “Riyadh intends to pursue a much more assertive foreign policy, at times conflicting with American interests.”

One long-time observer of Saudi policy says the kingdom is preparing to use its wealth and economic growth (forecast at nearly 6% this year, thanks to the rising price of crude oil) to lead an expanded bloc as old certainties wither away.

The Saudis plan to spend $100 billion to modernize their armed forces, buy a new generation of combat aircraft and add 60,000 Interior Ministry troops. Like other Gulf states, Saudi Arabia also plans to expand its special forces.

Beyond its borders the kingdom wants to expand the six-member Gulf Cooperation Council, until now a club of wealthy monarchies, by inviting Jordan and Morocco to join. They might not have much money, but they, too, are ruled by Sunni monarchs and have — by regional standards — cohesive and well-trained armies.

In return, Gulf largesse would help support their weak economies. Amid recriminations and confusion in the Arab League — whose planned Baghdad summit has just been postponed for a whole year — the Saudis see the GCC as the institutional antidote to the upheavals of the Arab Spring.

Saudi Arabia has already created a $20 billion fund to assist Bahrain and Oman. And the dispatch of some 1,000 troops to Bahrain in March served notice to Tehran that Saudi Arabia would not tolerate a Shiite-dominated state a few miles off its coast.

“Sending a force to Bahrain was a necessary evil for the GCC in order to protect the monarchy in Bahrain,” says Theodore Karasik of the Institute of Near East and Gulf Military Analysis. “If a monarchy falls in the region, this might create a domino effect.”

It was also a slap in the face to U.S. policy in the region, which was focused on coaxing dialogue in Bahrain. Just days before the Saudi intervention, U.S. Defense Secretary Robert Gates was in Bahrain urging King Hamad to take more than “baby steps” towards reform.

That followed alarm in Riyadh over the Obama administration’s desertion of long-time ally Hosni Mubarak, who had cultivated close ties with the Gulf states and who was regarded by the Saudis as another Arab bulwark against “Iranian expansionism.” The U.S. eventually told Mubarak it was time to go, but the Saudi royal family supported him to the end, even offering to make up for any cut in U.S. aid.

Bremmer of the Eurasia Group says the United States does hold important cards — through multi-billion-dollar arms contracts and long-established relationships in the oil industry. And regional analysts say that ultimately Saudi Arabia would likely appeal for and get U.S. help in any showdown with Iran.

Bremmer says that much in the Gulf revolves around personal relationships and loyalties, and he says the Obama administration needs to invest more in that, starting at the top. By contrast, senior executives in U.S. oil companies — by and large no fans of the president’s energy policy — do talk with the Saudis.

In the longer-term, a Saudi tilt to the East may simply reflect new economic realities. Some 55% of Saudi oil now flows to Asia, compared with about 10% that flows to the United States. The Saudi state oil firm has built refineries in China, and trade between the two countries was worth $40 billion in 2010.

As relations with the West fray, Bremmer concludes that “a far-reaching Saudi-China strategic partnership could well result alongside expanded Chinese contracts to buy long-term access to Saudi oil and Chinese investment in developing Saudi infrastructure.”

The Iranian meddling in Bahrain was temporarily to be put to a hold. However, the prey, albeit small in acreage, is too lucrative to be let go, and Iranian clandestine intervention continues. Bahrain, a small island kingdom in the Gulf, is coveted by Iran, its neighbor across the bay, as it has a lot to covet. Strategically located near the Hormuz straits, through which 20% of the world’s oil passes, with its own production of 40,000 oil barrels a day, and with huge gas reserves, Bahrain is definitely in the sights of the Iranian regime. What makes the Iranian move to indirectly swallow Bahrain a real risk is the fact that 70% of the Bahraini population is Shiite, such as 80% of Iran’s population, and the Bahraini Shiites look up to Iran for guidance, or even instructions.

The Saudi King and other Gulf States rulers read the map correctly and sent troops to protect Bahrain. The demise of the 200-year Bahrain rule of the Sunni dynasty currently headed by King Sheikh Hamad bin Isa Al-Khalifa’s and its replacement by a Shiite puppet of Iran could be ominous to their own regimes. Saudi Arabia is particularly vulnerable because its rich oilfields border with Bahrain and the local population in this region is mostly Shiite. A successful Shiite takeover of Bahrain could whet the appetite of the Saudi Shiites and their Iranian comrades to follow suit. Therefore, with the invitation of the Bahraini king, 3,500 Saudi soldiers crossed the bridge linking Saudi Arabia with Bahrain to help preserve the Bahraini regime.

The Iranians are far from liking this development, which all of a sudden shuffled their cards. Now, it is no longer tiny Bahrain defending itself from Iranian sponsored subversion — it is Iran versus Saudi Arabia and the United Arab Emirates. The bar has risen. Saudi Arabia, with a cash chest that would make King Midas envious and with the backing of the U.S, is a formidable rival to Iran.

The Iranian response to the Saudi move was quick. Local media in the northeastern city of Mashhad reported that 700 people gathered outside the Saudi consulate and stoned it to protest the killing of Shiites in Bahrain. If the Saudi government fails to take the hint, additional protests are likely to follow in other Iranian cities, including Tehran.

Saudi Arabia has increased its pressure on the U.S to intervene and prevent the operation of the Iranian nuclear plant in Bushehr. They quoted Dmitry Rogozin the Russian ambassador to NATO who repeated a previous warning sent by Russia that “The virus attack on a Russian-built nuclear reactor in Iran could have triggered a nuclear disaster on the scale of Chernobyl.” Now the concern is increased following the disaster in the Japanese reactors in Fukoshima. Although Fereydoun Abbasi the head of the Atomic Energy Organization, acknowledged that “Even before the earthquake and nuclear contamination crisis in Japan, Iran had accepted Russian experts’ proposal to revise its plans to load fuel into the core of the Bushehr power plant’s reactor,” Saudi Arabia continues with its pressure against Iran, as part of its effort to limit Iranian clandestine involvement in Bahrain.

The rivalry between Iran and Saudi Arabia is not new. The fervent Shiite Iran and the Sunni Saudi Arabia have long been struggling over the reign of world Muslims. Thus far, with its control of the two holy cities of Mecca and Medina, Saudi Arabia has the upper hand.

The saber rattling continues. Bahrain ousted the Iranian Consul in Manama, and the Iranians retorted in kind. Iran recruited once more Hezbollah, its subcontractor for dirty jobs. During a rally in Beirut, Hezbollah leader Nasrallah criticized Bahrain’s monarchy for bringing in troops from neighboring Saudi Arabia and other Gulf States to quash Shiite protests. Nasrallah said the blood of the people will eventually force their regimes to grant them greater rights.

The Bahraini Foreign Ministry condemned Hezbollah’s criticism of its government, describing it as an intervention in Bahrain’s internal affairs. A statement released by the Bahrain foreign ministry said Nasrallah’s verbal “assault against Bahrain and its people” was aimed at serving foreign interests, a reference to Iran, Hezbollah’s boss. The foreign ministry described Nasrallah as the “representative of a terrorist organization with a known history in destabilizing security in the region.” Apparently, Iran and its allies do not like others to play in what Iran considers its own playground.

Thus far the Iranians are wary not to directly confront the Saudis, and for a reason: For Iran, Saudi Arabia is the last major local power they need to win over; however, it is not a simple task. The Saudis’ big brother is watching — the U.S. The U.S has failed to intervene in Egypt because Egypt is dependent on U.S aid and therefore, it anticipated that the Egyptian response to the U.S lack of active support would be limited to verbal condemnation, if any. However, the terms of reference between the U.S and Saudi Arabia are diametrically different. It is Saudi Arabia that supports the U.S with money, oil and military bases. Therefore, Saudi interests and voices are more likely to be listened to attentively in Washington, D.C.

Nonetheless, the Sunnis in Bahrain have a lot to worry about. The Shiites in Bahrain demand a democratic republic instead of monarchy, and that simple message is certain to find many attentive ears in the U.S and elsewhere. However, democracy in Bahrain with a 70% Shiite majority, means Sunnis out, Shiites in, the U.S and its 5th Fleet harbor out, Iran in, including a control of the oil reserves and a direct threat to Saudi Arabia, the world’s largest producer of oil in fields located next door populated by Shiites.

As absurd as it may sound, it is likely that supporters of full Western style democracy in Bahrain may at the end of the day be supporting theocratic Iran.

A dilemma, Greek for “two premises,” has been likened to the horns at the front end of an angry and charging bull. Both premises are bad options.

If there were ever a decision tantamount to sitting on the horns of the dilemma, the choices the West needs to make are fitting. What would the West choose? Support democracy for approximately 350,000 Shiites in Bahrain, or risk an increased Iranian control of the spigots of the huge oil reserves, with the resulting immediate effect on the world’s economy?

By Haggai Carmon

A tectonic shift has occurred in the U.S.-Saudi relationship. Despite significant pressure from the Obama administration to remain on the sidelines, Saudi leaders sent troops into Manama in March to defend Bahrain’s monarchy and quell the unrest that has shaken that country since February. For more than 60 years, Saudi Arabia has been bound by an unwritten bargain: oil for security. Riyadh has often protested but ultimately acquiesced to what it saw as misguided U.S. policies. But American missteps in the region since Sept. 11, an ill-conceived response to the Arab protest movements and an unconscionable refusal to hold Israel accountable for its illegal settlement building have brought this arrangement to an end. As the Saudis recalibrate the partnership, Riyadh intends to pursue a much more assertive foreign policy, at times conflicting with American interests.

The backdrop for this change are the rise of Iranian meddling in the region and the counterproductive policies that the United States has pursued here since Sept. 11. The most significant blunder may have been the invasion of Iraq, which resulted in enormous loss of life and provided Iran an opening to expand its sphere of influence. For years, Iran’s leadership has aimed to foment discord while furthering its geopolitical ambitions. Tehran has long funded Hamas and Hezbollah; recently, its scope of attempted interference has broadened to include the affairs of Arab states from Yemen to Morocco. This month the chief of staff of Iran’s armed forces, Gen. Hasan Firouzabadi, harshly criticized Riyadh over its intervention in Bahrain, claiming this act would spark massive domestic uprisings.

Such remarks are based more on wishful thinking than fact, but Iran’s efforts to destabilize its neighbors are tireless. As Riyadh fights a cold war with Tehran, Washington has shown itself in recent months to be an unwilling and unreliable partner against this threat. The emerging political reality is a Saudi-led Arab world facing off against the aggression of Iran and its non-state proxies.

Saudi Arabia will not allow the political unrest in the region to destabilize the Arab monarchies — the Gulf states, Jordan and Morocco. In Yemen, the Saudis are insisting on an orderly transition of power and a dignified exit for President Ali Abdullah Saleh (a courtesy that was not extended to Hosni Mubarak, despite the former Egyptian president’s many years as a strong U.S. ally). To facilitate this handover, Riyadh is leading a diplomatic effort under the auspices of the six-country Gulf Cooperation Council. In Iraq, the Saudi government will continue to pursue a hard-line stance against the Maliki government, which it regards as little more than an Iranian puppet. In Lebanon, Saudi Arabia will act to check the growth of Hezbollah and to ensure that this Iranian proxy does not dominate the country’s political life. Regarding the widespread upheaval in Syria, the Saudis will work to ensure that any potential transition to a post-Assad era is as peaceful and as free of Iranian meddling as possible.

Regarding Israel, Riyadh is adamant that a just settlement, based on King Abdullah’s proposed peace plan, be implemented. This includes a Palestinian state with its capital in East Jerusalem. The United States has lost all credibility on this issue; after casting the sole vote in the U.N. Security Council against censuring Israel for its illegal settlement building, it can no longer act as an objective mediator. This act was a watershed in U.S.-Saudi relations, guaranteeing that Saudi leaders will not push for further compromise from the Palestinians, despite American pressure.

Saudi Arabia remains strong and stable, lending muscle to its invigorated foreign policy. Spiritually, the kingdom plays a unique role for the world’s 1.2 billion Muslims — more than 1 billion of whom are Sunni — as the birthplace of Islam and home of the two holiest cities. Politically, its leaders enjoy broad domestic support, and a growing nationalism has knitted the historically tribal country more closely together. This is largely why widespread protests, much anticipated by Western media in March, never materialized. As the world’s sole energy superpower and the de facto central banker of the global energy markets, Riyadh is the economic powerhouse of the Middle East, representing 25 percent of the combined gross domestic product of the Arab world. The kingdom has amassed more than $550 billion in foreign reserves and is spending more than $150 billion to improve infrastructure, public education, social services and health care.

To counter the threats posed by Iran and transnational terrorist networks, the Saudi leadership is authorizing more than $100 billion of additional military spending to modernize ground forces, upgrade naval capabilities and more. The kingdom is doubling its number of high-quality combat aircraft and adding 60,000 security personnel to the Interior Ministry forces. Plans are underway to create a “Special Forces Command,” based on the U.S. model, to unify the kingdom’s various special forces if needed for rapid deployment abroad.

Saudi Arabia has the will and the means to meet its expanded global responsibilities. In some issues, such as counterterrorism and efforts to fight money laundering, the Saudis will continue to be a strong U.S. partner. In areas in which Saudi national security or strategic interests are at stake, the kingdom will pursue its own agenda. With Iran working tirelessly to dominate the region, the Muslim Brotherhood rising in Egypt and unrest on nearly every border, there is simply too much at stake for the kingdom to rely on a security policy written in Washington, which has backfired more often than not and spread instability. The special relationship may never be the same, but from this transformation a more stable and secure Middle East can be born.

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C O N F I D E N T I A L SECTION 01 OF 03 RIYADH 000408
SIPDIS
DEPARTMENT FOR M U/S PKENNEDY, DOE FOR DAS WBRYAN, CENTCOM
FOR POLAD
E.O. 12958: DECL: 03/11/2014
TAGS: ECON ENRG EPET IR IZ MARR MCAP MOPS OVP PGOV
PK, PREL, PTER, SA, YM
SUBJECT: SAG-USG COUNTER-TERRORISM PARTNERSHIP
REF: A. A:07 RIYADH 1778
¶B. B: RIYADH 272
¶C. C: RIYADH 268
¶D. D: RIYADH 326
Classified By: Deputy Chief of Mission David Rundell
for reasons 1.4 (B) and (D)
¶1. (C) SUMMARY. The SAG’s MOI-hosted Security Conference in
Riyadh and the meeting between CENTCOM DCOM LtGen John Allen
with Asst. Minister for National Security Affairs Prince
Mohammed bin Naif (MbN) highlight the SAG’s commitment to
counter-terrorist activity in the Kingdom by partnering with
the USG in protecting its critical infrastructure, especially
its energy production sites. MbN reconfirmed the SAG’s
commitment to pay all critical infrastructure protection
costs of the Office of Program Management-Ministry of
Interior (OPM-MOI), including USG employee salaries. He
concurred any changes necessary in the Technical Cooperation
Agreement (TCA) be made to allow such payments, but remarked
hopefully the lawyers would not be problematic. Regarding
the Saudi deradicalization program, he considered it a
success in generating Saudi public anger at radical
extremists and was unconcerned by those who escaped the
program to rejoin Al Qaeda (AQ), noting they actually serve
the SAG’s purpose because they delegitimize extremism by
rebuffing the chance for rehabilitation and a new life,
further alienating violent radicals from the populace. MbN
did express concern that some ARAMCO employees posed a threat
of internal sabotage to oil facilities due to extremist
sympathies. END SUMMARY.
OPM-MOI NOW OPERATIONAL
———————-
¶2. (SBU) OPM-MOI, a DOS-led interagency security assistance
organization including DOE and DOD, established by the formal
TCA signed by the Secretary and Minister of Interior HRH
Prince Naif bin Abdulaziz Al Saud in May 2008 to partner with
the Saudi MOI in protecting the Kingdom’s critical
infrastructure with full SAG funding (Reftel A), is now
operational in Saudi Arabia. In the March 9 meeting between
LtGen Allen and MbN, LtGen Allen introduced the senior U.S.
military officer assigned to assist the MOI in training its
Facilities Security Force (FSF). Likewise, we informed MbN
of the arrival of the senior DOS officer in Riyadh on March
10 to serve as OPM-MOI’s Program Manager and overall leader.
These officers, along with the senior DOE Liaison and
associated CENTCOM and Embassy Riyadh personnel, now serve as
the core of OPM-MOI who will begin assisting the Saudis in
enhancing the protection of their critical infrastructure,
with initial focus on Saudi oil facilities.
¶3. (C) LtGen Allen reaffirmed to MbN the USG’s full
commitment to the protection of Saudi critical
infrastructure, emphasizing that CENTCOM Commander GEN David
Petraeus guarantees CENTCOM’s full support to this program.
Both concurred on the importance to the global economy of
preventing terrorists from attacking Saudi oil facilities.
MbN asserted the goal is to prevent attacks from ever being
carried out, recommending OPM-MOI include intelligence links
in its operational plans. LtGen Allen commended MOI’s
success in dealing with internal terrorist threats in the
Kingdom, and its successful rehabilitation program with Saudi
Guantanamo returnees and extremists captured in Saudi Arabia.
RIYADH 00000408 002 OF 003
¶4. (SBU) MbN was informed that the initial OPM-MOI work
contracts, consisting of the DOE Project Specific Agreement
(PSA) to conduct vulnerability assessments of oil sites and
the DOD Letter of Offer and Acceptance (LOA) to implement
urgent needs training of FSF troops, have been submitted to
MOI staff for approval and signature. MbN was grateful for
USG efforts and assured us full funding would soon follow the
signing of these documents, and reconfirmed the SAG’s
commitment to pay all OPM-MOI costs. He also agreed to fund
all USG employee costs, concurring with any necessary TCA
changes to allow such payments, commenting that “hopefully
the lawyers will not cause us any problems.”
¶5. (SBU) MbN had previously acknowledged to the Ambassador
the MOI’s lack of technical capacity in effectively working
with OPM-MOI. To rectify this problem, OPM-MOI has begun
coordination with the Saudis for SAG-funded English language
and management training in the U.S. for mid-level MOI
officers who will be our future interlocutors. In the
interim, OPM-MOI is drafting a plan for MOI to contract and
fund bilingual Americans experienced in USG contracting and
Foreign Military Sales to work in MOI assisting in PSA, LOA,
and related OPM-MOI projects.
DEFUSING THE INTERNAL SAUDI THREAT
———————————-
¶6. (SBU) MOI sponsored the second annual Riyadh Security
Conference from March 2-5, which included such notables as
FBI Director Robert Mueller and former Attorney General Edwin
Meese. Other participants were U.S., British and Saudi
security officials, academics, and the U.S. and U.K
Ambassadors to the Kingdom. The theme of this well-received
conference was how to deradicalize extremists. This topic
was noteworthy as several Saudi Guantanamo returnees had
recently disappeared, with two resurfacing in Yemen as AQ
members (Reftels B, C and D).
¶7. (C) In private discussions with us, MbN observed it was
unfortunate these individuals had escaped and some had
rejoined AQ, but stated the Saudi deradicalization
rehabilitation program was nonetheless a success and was
unconcerned by these individuals. He explained while these
Guantanamo returnees rejoining AQ in Yemen was embarrassing
to the SAG, the program itself was achieving the true goal of
turning the Saudi populace against extremist radicals. These
individuals were being denounced by the Saudi public, and
even by their immediate families. The SAG was offering these
individuals employment and marriage opportunities to allow
new, peaceful and productive lives. MbN shared that if the
Saudi people saw that the SAG had offered these extremists a
helping hand which they slapped away, instead of a clenched
fist used against them, then their families, tribes and the
Saudi nation as a whole would view the SAG as “the
benefactor” and these unrepentant extremists as “deviants.”
According to MbN, in Arab culture this is an extremely
powerful and advantageous position for the SAG as it cuts off
the necessary public support extremists need to operate.
THREATS - YEMEN, IRAN AND FROM WITHIN
————————————-
¶8. (C) In response to his views on the current threat, MbN
listed three:
— Yemen was “a dangerous, failed state” similar to
Afghanistan by allowing AQ to regroup and become its
RIYADH 00000408 003 OF 003
operational base. He mentioned the SAG was using its funds
to gain Yemeni tribal cooperation through public works
programs, especially as a way to curb the lawlessness along
the Saudi-Yemeni border. MbN offered that while Yemeni
President Saleh was not the best leader, after 30 years in
power, his removal, either through natural causes or
rebellion, would leave a vacuum that would further weaken
Yemen. He opined that overtures to the Taliban in
Afghanistan were useful, as it would make Al Qaeda leaders
there nervous and unsure if they would be betrayed, but this
would also make them more likely to seek “safe haven” in
Yemen. LtGen Allen informed that U.S. Special Forces and
U.S. Navy trainers were stepping cooperation with Yemeni
forces to counter border and maritime threats.
— Iran, according to MbN, was a greater threat from its
destabilizing actions than from its nuclear program. He
added Iran currently has many weaknesses due to its
deteriorating economy. USG overtures for talks with Iran
would exploit those weaknesses and further undermine the
mullahs.

— Regarding the internal Saudi threat, MbN stated AQ was
beaten down in the Kingdom, but he was concerned of “insiders
in ARAMCO” and that ARAMCO employees with full access to its
facilities were extremists or extremist/Hezbollah
sympathizers, using their authorized access and/or technical
knowledge to commit sabotage. Again, he then emphasized the
importance of OPM-MOI to provide rapid training of the FSF
and detailed assessments of the vulnerabilities of Saudi oil
facilities.
¶9. (C) COMMENT. The SAG has worked to counter terrorism
within the Kingdom, achieving significant success. Both
through its kinetic operations against AQ, to its soft power
deradicalization rehabilitation program where it has turned
the Saudi public against AQ and violent extremism. Bilateral
cooperation on the protection of Saudi critical
infrastructure, as previously reported, is of immense
importance to ensure adequate energy supplies are available
to the global economy. OPM-MOI offers a tremendous venue to
strengthen the U.S.-Saudi bilateral relationship which then
allows a broadening of Saudi support on a host of issues.
END COMMENT.
FRAKER

In normal circumstances, a visit by a Pakistani minister to Riyadh would make no news at all. But these are interesting, although not abnormal, times in Pakistan-Saudi relationship.

There is a consensus among political observers that after the inception of the PPP-led government in 2008, Islamabad’s ties with Riyadh had lost the warmth that had defined their partnership for the past six decades.

But the chill has apparently given way to a thaw, the observers think, and Islamabad now seems to be back on the regional radar — for more than one reasons.

The visit is taking place in the backdrop of the so called ‘Arab spring’ which has almost stalled and appears to be going nowhere. Old regional alignments are being revived and new alignments have been emerging on the wider Middle East chessboard as a new cold war between regional heavyweights gets stickier.

The ongoing popular uprising in a number of countries have all lent a new meaning to the Arab-Iran gulf. And Pakistan’s role in the scenario has come under a renewed focus.

Events over the past few years have only helped reinforce and entrench misgivings within the Arab world about the growing Iranian influence. The departure of Saddam Hussain from Baghdad and the fostering of Maliki government in Iraq, has led many to look at the development from a different perspective- the growing Shia influence in the Arab world.

King Abdullah of Jordan once referred to it as “the expanding Shia crescent” in the region. Arab governments feel apprehensive on that account. And recent events seem to have only reinforced their fears.

In Lebanon the influence of the pro-Iran Hezbollah is ascending — at the expense of the Saudi-backed Hariri. This was regarded by many here as a strategic loss.

Riyadh has also been complaining, for long, of the growing Iranian influence in Hamas-ruled Gaza. And to counter Tehran’s growing clout, Riyadh had little option than supporting the pro-West Abbas set-up in the West Bank. Then the upheaval in Egypt turned out to be the last straw on the back of the proverbial camel. King Abdullah of Saudi Arabia supported Hosni Mubarak till the end.

The US failure to support Mubarak, not only soured the political relations between Riyadh and Washington, but also forced the Kingdom to play its cards rather aggressively. There was no room for further complacency — many felt here.

When the uprising began in Bahrain, everyone here in Riyadh realised the stakes were too high. The option of watching things take its own course was definitely not on the table. Riyadh acted and acted swiftly.

WAR OF WORDS

An explosive war of words erupted between Riyadh and Tehran. Events in Bahrain exacerbated tensions between Saudi Arabia, its Arab allies and Iran, dragging relations between them to its ebb in at least a decade and setting the stage for confrontations elsewhere in the region.

The Gulf Cooperation Council, comprising six Arab states around the Gulf, was also dragged into action. The GCC explicitly warned Iran of dire consequences, if it continued endeavouring to make inroads into the Arab world.

Back-channel diplomacy was also used to send the message in rather clear terms to Tehran. Gulf governments were no more ready to give in and vowed doing everything at their disposal to protect their ‘legitimate interests’.

Hands off the Arab world — was the clear message to Iran. And in the meantime, the Arab world also went into full gear to galvanise support and muscle to block Tehran’s inroads, into what is being termed here the ‘Arab territory’ – through the Shia soft belly of the Arab states.

And it is here that Pakistan and Turkey got into the loop too. For after all these are the two strongest countries — as far as muscle is concerned — within the Sunni world.

A stream of events took place in a short span of time. Saudi National Security Council chief Prince Bandar bin Abdul Aziz came over to Islamabad, immediately after the meeting in Kuwait of President Zardari and Prince Naif bin Abdulaziz, the second deputy premier and the long-time interior minister.

And Prince Bandar’s visit was preceded by a visit of the Saudi chief of staff to Pakistan. In the meantime, the Bahraini foreign minister also dashed to Pakistan, despite the ongoing strife in his country.

Something was indeed brewing. Islamabad was again on the radar in Riyadh. Interestingly, the visit of Hina Rabbani Khar to Riyadh was announced after Prince Bandar sent a letter to Prime Minister Gilani — following up on his meetings in Islamabad late last month. In the letter, Prince Bandar reiterated Saudis’ desire to further strengthen relations with Pakistan in all areas of mutual interest.

In the aftermath of Prince Bandar’s regional visit, Riyadh has already signed a security agreement with Malaysia, vowing to enhance the level of security cooperation between the two countries. And after his Beijing trip, Saudi Arabia and China too announced signing an agreement on nuclear cooperation for peaceful purpose.

And Prince Bandar is no ordinary diplomat. He is often regarded as a trouble-shooter for Riyadh. John Hannah, writing in the Foreign Policy magazine, says: ‘Saudi Arabia’s legendary former ambassador to Washington, Prince Bandar bin Sultan, is once again a major presence on the world stage.’

And his previous visit to Pakistan did not escape world attention and generated considerable interest. In the same story Hannah says: “More interestingly – and undoubtedly more worrisome – at the end of March, in the wake of the Saudi intervention in Bahrain, Bandar was dispatched to Pakistan, China and India to rally support for the kingdom’s hard line approach to the region’s unrest.

“Bandar’s formidable skills in the service of a Saudi Arabia that feels itself increasingly cornered and unable to rely on US protection is a formula for trouble — made even worse when the likes of Pakistan and China are thrown into the mix.

“No one should forget that, in the late 1980s, it was Bandar who secretly brokered the delivery of Chinese medium-range missiles to the kingdom, totally surprising Washington and nearly triggering a major crisis with Israel. The danger today, of course, is that the Saudis feel sufficiently threatened and alone to engage in similar acts of self-help.

“Would they seek to modernise their ballistic missile force? Even worse, would the kingdom go shopping for nuclear weapons or, at a minimum, invite Pakistan to deploy part of its nuclear arsenal in the country?”

As the Middle East convulses and Iran relentlessly inches closer to achieving a nuclear weapons capability, has that time finally arrived? Even short of these extreme scenarios, other troubling possibilities exist. During his trip to Pakistan, Bandar reportedly discussed contingencies under which thousands of additional Pakistani security forces might be dispatched to Bahrain and Saudi Arabia to crush the uprising.

So it appears Pakistan is getting sucked into a regional cold war — and Washington may not mind it this time too. When Hina Rabbani Khar lands in Riyadh today, she can expect the red carpet to roll — once again. The talk of chill seems a distant story.

‘Melodrama” and ”Middle East” are words that sit comfortably in the same sentence. But who would have thought, as the world thrilled to the peaceful revolt by millions of ordinary Tunisians in January, that just three months later two of the region’s bad-cop regimes - Riyadh and Tehran - might be seen to be verging towards war?

They are on snarling terms already. Amid the clamour for rights and reform across the Middle East and North Africa, the irony of these heavyweights coming to blows is that each is as repressive as the other - but none of that will stop the rest of the region, and the world, lining up to take sides.

For now it’s a cold war, fought by proxies elsewhere. In Lebanon, the Saudi-backed Sunnis have lost significant ground to the Iranian- and Syrian-backed Hezbollah, which now controls the levers of power in Beirut.

In the current crises, Riyadh and Tehran face-off in Bahrain - Tehran is backing the majority Shiites; Riyadh had thrown its lot in with the minority Sunni monarchy, as it attempts to smash the protest movement. And Yemen, on the Saudis’ southern border, is the most likely next point of friction between the two.

Historically, they have pulled in opposite directions. Saudi Arabia is Arab and Sunni; Iran is Persian and Shiite. Both invest hugely in spreading their beliefs to the farthest corners of the Muslim world. Iran lines up with the so-called Arab rejectionists - Syria, Hezbollah and Hamas. The Saudis line up with Egypt, Morocco, the Gulf statelets and the Palestinian Fatah faction. Riyadh pulls with Washington; Tehran against.

”The cold war is a reality,” a senior Saudi official told The Wall Street Journal. ”Iran is looking to expand its influence. The instability over the last few months means that we don’t have the luxury of sitting back and watching events unfold.”

How that plays out will be intriguing in what has become a ”yes, but …” geopolitical, global crossroads. The permutations tantalise. If the Damascus regime of Bashar al-Assad collapses, what are the implications if the Syrian alliance with Tehran fractures? What becomes of Syria’s joint sponsorship, with Iran, of Hezbollah in neighbouring Lebanon and of Hamas in the Palestinian Occupied Territories?

All these are ”yes, but …” issues, as much for Damascus as for Tehran. Given that Syria remains, technically at least, at war with Israel, can we assume that any new order in Syria would rush to throw over Hezbollah and Hamas? Even Israel, as much as it loathes the Tehran-Damascus-Hezbollah-Hamas quartet, is wary of who and what might replace Assad in the Syrian capital, because just as the interim regime in Cairo is shifting away from the ousted regime’s alliance with Israel, there is no guarantee that a new Syrian leadership will be any friendlier to Tel Aviv.

What if Syria dumped Iran as an ally - but was to pick up expansionist Turkey as a new best friend in the region? Likewise, how might the regional balance be altered if Tehran was to lose Damascus as an ally, but in turn was to pick up Shiite-controlled Iraq and liberated Egypt, which this week revealed that it was resuming diplomatic relations with Tehran?

The official spokesman for the Egyptian Foreign Ministry told reporters: ”We are prepared to take a different view of Iran; the former regime used to see Iran as an enemy, but we don’t.” Similarly, the ministry confirmed that new Foreign Minister, Nabil Elaraby, was considering a visit to the Hamas-controlled Gaza Strip. As a return on the Americans’ huge blood-and-treasure investment in deposing Saddam Hussein and thereby delivering Iraq from minority Sunni control to a majority Shiite government that is becoming increasingly relaxed and comfortable in its dealings with Tehran, the US has handed the Iranian regime a rare gift. Yes, the ayatollahs might lose Syria as their Arab champion, but here is Arab Baghdad and Washington’s lock-step ally Cairo beckoning Tehran with open arms.

The Saudis are furious with Washington over the loss of Sunni control of Iraq and over Barack Obama selling out the Egyptian leader, Hosni Mubarak. Such is the chill between the two countries that Riyadh recently refused official visits by the US Secretary of State, Hillary Clinton, and by the Defence Secretary, Robert Gates. A measure of Saudi determination - maybe that should be ”desperation” - is that when Riyadh saw a need to quell the unrest in Bahrain, it ignored pleas from Washington and sent its own troops over the causeway that links Bahrain to the kingdom.

This is a regime that ordinarily pays others to fight its battles - see its funding of Iraq in its 1980s war with Iran; or has relied on allies - see American wars against Saddam Hussein in 1991 and in 2003.
Ramping it all into a religious conflict, a senior Saudi official was quoted: ”King Abdullah has been clear that Saudi Arabia will never allow Shia rule in Bahrain - never.” In turn, Iran’s President, Mahmoud Ahmadinejad, has warned the House of Saud that it ”should learn from Saddam’s fate”.

The stakes for the US are huge - a third of its imported oil comes from Saudi Arabia, and Bahrain hosts the US Navy’s Fifth Fleet, which patrols vital sea lanes through which a fifth of the world’s oil supplies are shipped. Equally, Riyadh and other capitals in the region have openly speculated on pursuing their own nuclear programs, if Tehran is allowed to persist with its program.

The story of the Washington response to all of this is circuitous.

The Western military intervention in Libya is dressed up as a humanitarian act, but don’t be fooled, writes Robert Kaplan of the Centre for a New American Security in The Wall Street Journal. Arguing that in foreign policy all moral questions are really questions of power, Kaplan observes: ”We intervened twice in the Balkans in the 1990s, only because Yugoslav dictator Slobodan Milosevic had no nuclear weapons and could not retaliate against us; unlike the Russians, whose destruction of Chechnya prompted no thought of intervention on our part.”

Was that then the rationale for Washington’s decision to throw its superpower weight behind the Libyan intervention? Not entirely - orchestrated leaks from the Obama White House reveal that a critical element in the decision to join the attacks on Libya’s leader, Muammar Gaddafi, was the message such an action would send to Tehran.

As reported by The New York Times, failure to act against Libya would be seen by Tehran as a failure by Obama to follow through on his claim that Gaddafi had ”lost the legitimacy to lead”, as a confirming sign of weakness that Obama also would not follow through on his vow that he would never allow Iran to build a nuclear weapon.

Benjamin Rhodes, a senior aide present for the talks, was quoted: ”The ability to apply this kind of force in the region this quickly - even as we deal with other military deployments in Iraq and Afghanistan - combined with the nature of this broad coalition, sends a very strong message to Iran about our capabilities, militarily and diplomatically.”

In a broadcast translated into Persian and beamed into Iran to mark last month’s Persian new year, Obama told Iranians: ”So far, the Iranian government has responded by demonstrating that it cares more about preserving its own power than respecting the rights of the Iranian people. These choices do not demonstrate strength, they show fear.”

In this context Libya is presented as a sideshow. The real contest is with Tehran, which the Americans want to see stopped in its nuclear tracks - and whose tilt for the balance of power in the entire region they have blocked.

But the Arab uprisings were something of a get-out-of-jail-free card for Iran. In January, Washington was happy in the belief that it was boxing Tehran in with economic sanctions; a deal with Russia to halt weapons deliveries to Tehran; and a computer virus called Stuxnet, which was eating its way through the centrifuge machines in the Iranian uranium enrichment program.

Fast-forward to the present, and Washington’s Arab allies are more preoccupied with their own longevity and - ka-ching, ka-ching - Iran is doing better than the sanctions might have allowed, thanks to the crises in the region driving oil to $US100-plus a barrel.

In all of this, Washington’s key ally in the region was to be Riyadh. But the contempt for the US coming out of the Saudi capital is visceral - in the view of the princes, the Bush administration botched by toppling Saddam, thereby delivering Iraq to Tehran; and the Obama administration is condemned equally for selling out Mubarak, and allowing the grubby rank-and-file Egyptians to have a meaningful vote.

In these twin efforts, Washington is seen to have dislodged two great stones in what was a Sunni wall that effectively thwarted Iranian ambition. Likewise, in refusing to go along with Saudi efforts to resolve the Palestinian crisis, Riyadh saw Washington prolonging the issue that Iran used to great effect in stirring the Arab street.

Washington, it must be noted, does not have a mortgage on hypocrisy in the region. The Americans look morally bankrupt - leading the charge against Gaddafi and dumping long-standing allies Mubarak in Cairo and Zine El Abidine Ben Ali in Tunis, while at the same time allowing the leaders of Bahrain, Yemen and Syria to get away with murder in confronting protesters.

But, like the US, the Iranian ayatollahs are into picking winners and losers. Initially they simply ignored the growing unrest in allied Syria, but when that became unsustainable, they took to casting the demonstrations against Assad as the work of Israeli-trained provocateurs.

The revolts in Tunisia and Egypt, according to the Tehran spin, were belatedly inspired by Iran’s 1979 revolution. And while it champions the ”Islamic awakening” rights of the demonstrators who are being brutalised by the regime in neighbouring Bahrain, it whitewashes out of the equation its own brutal suppression of Iranians who have attempted to revive the mass protests that erupted in the wake of Iran’s disputed presidential election in 2009.

For the mullahs, the region’s uprisings are a day-by-day proposition. They might posture endlessly about the holy Shiite suffering in Bahrain, but they know - and they know that their people know - the revolts in Tunisia and in Egypt were a secular lunge for a kind of democracy which, if successful, will make their theocracy a sad venture by comparison.

But for now, Iranian security forces have arrested opposition leaders and tightened media censorship and control of the internet and social media. In the region, the Iranian leadership observes a greater level of difficulty for Washington in achieving the three elements of its regional policy - a region from which the oil flows freely; in which Israel is protected; and in which citizens enjoy basic human rights, or at least to the extent that they do not attack US interests, as expressed by Thanassis Cambanis, of Columbia University. Or, to quote the Hillary Clinton lexicon - ”stability”.

As they happily crack the heads of the few who dare to take to the streets in Iranian cities, the mullahs cannot believe the Sunni Saudis were mug enough to send forces into Bahrain to put down an uprising by Shiites.

Despite endless complaints from Riyadh, there has been little to substantiate its claims that Iran is deliberately manipulating events in Bahrain - even US diplomats have reported no signs of Iranian intervention in the Bahraini protests.

It was only after the Bahraini regime unleashed its brutal attacks on demonstrators that posters of the Hezbollah leader, Hassan Nasrallah, appeared in the crowds and that calls were made for the ousting of the royal family. Iran did beam broadcasts of Nasrallah’s speeches into Bahrain, but foreign diplomats back the protest leaders’ denial of claims by the regime that they have received money and weapons from Tehran.

For the Saudis, the uprisings are a horrific moment. Abutted by all of Jordan, Yemen, Iraq and Bahrain, Riyadh views the varying degrees of unrest in all four as a threat to its own stability. Others agree.
Kaplan grinds all this into a single, core question for Washington: ”Which regime [will last] longer: Saudi Arabia’s or Iran’s? If the Saudi monarchy turns out to have more staying power, we will wrest a great strategic victory from this process of unrest; if Iran’s theocracy prevails, it will signal a fundamental eclipse of American influence in the Middle East.”

Answers to that question thrown up by some analysts, make the call in Tehran’s favour.

In a joint-paper, Ruth Hanau Santini, of the Brookings Centre on the US and Europe, and Emiliano Alessandri, of the German Marshal Fund, see the balance of power in the Persian Gulf shifting in Iran’s favour, ”just as it did in 2003, with the US-led war in Iraq”.

They write: ”Regional power shifts, rising oil prices and progress in its nuclear program all seem to have combined to boost Iran’s external ambitions.

”The authority of Saudi Arabia, which has long served as a counterbalance to Iran, the bastion of regional stability, and the guarantor of Israel’s survival, has been severely weakened by the ongoing turmoil.”

Reviewing Washington’s options, the paper concludes: ”Iran’s calculus that the current level of unrest will turn to Tehran’s advantage, without it having to lift a finger, makes it an especially difficult interlocutor.”

By Paul McGeogh

For three months, the Arab world has been awash in protests and demonstrations. It’s being called an Arab Spring, harking back to the Prague Spring of 1968.

But comparison to the short-lived flowering of protests 40 years ago in Czechoslovakia is turning out to be apt in another way. For all the attention the Mideast protests have received, their most notable impact on the region thus far hasn’t been an upswell of democracy. It has been a dramatic spike in tensions between two geopolitical titans, Iran and Saudi Arabia.

This new Middle East cold war comes complete with its own spy-versus-spy intrigues, disinformation campaigns, shadowy proxy forces, supercharged state rhetoric—and very high stakes.

“The cold war is a reality,” says one senior Saudi official. “Iran is looking to expand its influence. This instability over the last few months means that we don’t have the luxury of sitting back and watching events unfold.”

On March 14, the Saudis rolled tanks and troops across a causeway into the island kingdom of Bahrain. The ruling family there, long a close Saudi ally, appealed for assistance in dealing with increasingly large protests.

Iran soon rattled its own sabers. Iranian parliamentarian Ruhollah Hosseinian urged the Islamic Republic to put its military forces on high alert, reported the website for Press TV, the state-run English-language news agency. “I believe that the Iranian government should not be reluctant to prepare the country’s military forces at a time that Saudi Arabia has dispatched its troops to Bahrain,” he was quoted as saying.

The intensified wrangling across the Persian—or, as the Saudis insist, the Arabian—Gulf has strained relations between the U.S. and important Arab allies, helped to push oil prices into triple digits and tempered U.S. support for some of the popular democracy movements in the Arab world. Indeed, the first casualty of the Gulf showdown has been two of the liveliest democracy movements in countries right on the fault line, Bahrain and the turbulent frontier state of Yemen.

But many worry that the toll could wind up much worse if tensions continue to ratchet upward. They see a heightened possibility of actual military conflict in the Gulf, where one-fifth of the world’s oil supplies traverse the shipping lanes between Saudi Arabia and Iran. Growing hostility between the two countries could make it more difficult for the U.S. to exit smoothly from Iraq this year, as planned. And, perhaps most dire, it could exacerbate what many fear is a looming nuclear arms race in the region.

Iran has long pursued a nuclear program that it insists is solely for the peaceful purpose of generating power, but which the U.S. and Saudi Arabia believe is really aimed at producing a nuclear weapon. At a recent security conference, Prince Turki al Faisal, a former head of the Saudi intelligence service and ambassador to the U.K. and the U.S., pointedly suggested that if Iran were to develop a weapon, Saudi Arabia might well feel pressure to develop one of its own.

The Saudis currently rely on the U.S. nuclear umbrella and on antimissile defense systems deployed throughout the Persian Gulf region. The defense systems are intended to intercept Iranian ballistic missiles that could be used to deliver nuclear warheads. Yet even Saudis who virulently hate Iran have a hard time believing that the Islamic Republic would launch a nuclear attack against the birthplace of their prophet and their religion. The Iranian leadership says it has renounced the use of nuclear weapons.

How a string of hopeful popular protests has brought about a showdown of regional superpowers is a tale as convoluted as the alliances and history of the region. It shows how easily the old Middle East, marked by sectarian divides and ingrained rivalries, can re-emerge and stop change in its tracks.

There has long been bad blood between the Saudis and Iran. Saudi Arabia is a Sunni Muslim kingdom of ethnic Arabs, Iran a Shiite Islamic republic populated by ethnic Persians. Shiites first broke with Sunnis over the line of succession after the death of the Prophet Mohammed in the year 632; Sunnis have regarded them as a heretical sect ever since. Arabs and Persians, along with many others, have vied for the land and resources of the Middle East for almost as long.

These days, geopolitics also plays a role. The two sides have assembled loosely allied camps. Iran holds in its sway Syria and the militant Arab groups Hezbollah in Lebanon and Hamas in the Palestinian territories; in the Saudi sphere are the Sunni Muslim-led Gulf monarchies, Egypt, Morocco and the other main Palestinian faction, Fatah. The Saudi camp is pro-Western and leans toward tolerating the state of Israel. The Iranian grouping thrives on its reputation in the region as a scrappy “resistance” camp, defiantly opposed to the West and Israel.

For decades, the two sides have carried out a complicated game of moves and countermoves. With few exceptions, both prefer to work through proxy politicians and covertly funded militias, as they famously did during the long Lebanese civil war in the late 1970s and 1980s, when Iran helped to hatch Hezbollah among the Shiites while the Saudis backed Sunni militias.

But the maneuvering extends far beyond the well-worn battleground of Lebanon. Two years ago, the Saudis discovered Iranian efforts to spread Shiite doctrine in Morocco and to use some mosques in the country as a base for similar efforts in sub-Saharan Africa. After Saudi emissaries delivered this information to King Mohammed VI, Morocco angrily severed diplomatic relations with Iran, according to Saudi officials and cables obtained by the organization WikiLeaks.

As far away as Indonesia, the world’s most populous Muslim country, the Saudis have watched warily as Iranian clerics have expanded their activities—and they have responded with large-scale religious programs of their own there.

The 1979 Iranian revolution was a major eruption that still looms large in the psyches of both nations. It explicitly married Shiite religious zeal with historic Persian ambitions and also played on sharply anti-Western sentiments in the region.

Iran’s clerical regime worked to spread the revolution across the Middle East; Saudi Arabia and its allies worried that it would succeed. For a time it looked like it might. There were large demonstrations and purported antigovernment plots in Saudi Arabia’s Eastern Province, which has a large population of Shiite Muslim Arabs, and in Bahrain, where Shiites are a distinct majority and Iran had claimed sovereignty as recently as 1970.

The protests that began this past January in Tunisia had nothing to do with any of this. They started when a struggling street vendor in that country’s desolate heartland publicly set himself on fire after a local officer cited his cart for a municipal violation. His frustration, multiplied hundreds of thousands times, boiled over in a month of demonstrations against Tunisian President Zine al-Abidine Ben Ali. To the amazement of the Arab world, Mr. Ben Ali fled the country when the military declined to back him by brutally putting down the demonstrations.

Spurred on by televised images and YouTube videos from Tunisia, protests broke out across much of the rest of the Arab world. Within weeks, millions were on the streets in Egypt and Hosni Mubarak was gone, shown the door in part by his longtime backer, the U.S. government. The Obama administration was captivated by this spontaneous outbreak of democratic demands and at first welcomed it with few reservations.

In Riyadh, Saudi officials watched with alarm. They became furious when the Obama administration betrayed, to Saudi thinking, a longtime ally in Mr. Mubarak and urged him to step down in the face of the street demonstrations.

The Egyptian leader represented a key bulwark in what Riyadh perceives as a great Sunni wall standing against an expansionist Iran. One part of that barrier had already crumbled in 2003 when the U.S. invasion of Iraq toppled Saddam Hussein. Losing Mr. Mubarak means that the Saudis now see themselves as the last Sunni giant left in the region.

The Saudis were further agitated when the protests crept closer to their own borders. In Yemen, on their southern flank, young protesters were suddenly rallying thousands, and then tens of thousands, of their fellow citizens to demand the ouster of the regime, led by President Ali Abdullah Saleh and his family for 43 years.

Meanwhile, across a narrow expanse of water on Saudi Arabia’s northeast border, protesters in Bahrain rallied in the hundreds of thousands around a central roundabout in Manama. Most Bahraini demonstrators were Shiites with a long list of grievances over widespread economic and political discrimination. But some Sunnis also participated, demanding more say in a government dominated by the Al-Khalifa family since the 18th century.

Protesters deny that their goals had anything to do with gaining sectarian advantage. Independent observers, including the U.S. government, saw no sign that the protests were anything but homegrown movements arising from local problems. During a visit to Bahrain, Secretary of Defense Robert Gates urged the government to adopt genuine political and social reform.

But to the Saudis, the rising disorder on their borders fit a pattern of Iranian meddling. A year earlier, they were convinced that Iran was stoking a rebellion in Yemen’s north among a Shiite-dominated rebel group known as the Houthis. Few outside observers saw extensive ties between Iran and the Houthis. But the Saudis nonetheless viewed the nationwide Yemeni protests in that context.

In Bahrain, where many Shiites openly nurture cultural and religious ties to Iran, the Saudis saw the case as even more open-and-shut. To their ears, these suspicions were confirmed when many Bahraini protesters moved beyond demands for greater political and economic participation and began demanding a constitutional monarchy or even the outright ouster of the Al-Khalifa family. Many protesters saw these as reasonable responses to years of empty promises to give the majority Shiites a real share of power—and to the vicious government crackdown that had killed seven demonstrators to that point.

But to the Saudis, not to mention Bahrain’s ruling family, even the occasional appearance of posters of Lebanese Hezbollah leader Hassan Nasrallah amid crowds of Shiite protesters pumping their fists and chanting demands for regime change was too much. They saw how Iran’s influence has grown in Shiite-majority Iraq, along their northern border, and they were not prepared to let that happen again.

As for the U.S., the Saudis saw calls for reform as another in a string of disappointments and outright betrayals. Back in 2002, the U.S. had declined to get behind an offer from King Abdullah (then Crown Prince) to rally widespread Arab recognition for Israel in exchange for Israel’s acceptance of borders that existed before the 1967 Six Day War—a potentially historic deal, as far as the Saudis were concerned. And earlier this year, President Obama declined a personal appeal from the king to withhold the U.S. veto at the United Nations from a resolution condemning continued Israeli settlement building in Jerusalem and the West Bank.

The Saudis believe that solving the issue of Palestinian statehood will deny Iran a key pillar in its regional expansionist strategy—and thus bring a win for the forces of Sunni moderation that Riyadh wants to lead.

Iran, too, was starting to see a compelling case for action as one Western-backed regime after another appeared to be on the ropes. It ramped up its rhetoric and began using state media and the regional Arab-language satellite channels it supports to depict the pro-democracy uprisings as latter-day manifestations of its own revolution in 1979. “Today the events in the North of Africa, Egypt, Tunisia and certain other countries have another sense for the Iranian nation.… This is the same as ‘Islamic Awakening,’ which is the result of the victory of the big revolution of the Iranian nation,” said Ayatollah Ali Khamenei.

Iran also broadcast speeches by Hezbollah’s leader into Bahrain, cheering the protesters on. Bahraini officials say that Iran went further, providing money and even some weapons to some of the more extreme opposition members. Protest leaders vehemently deny any operational or political links to Iran, and foreign diplomats in Bahrain say that they have seen little evidence of it.

March 14 was the critical turning point. At the invitation of Bahrain, Saudi armed vehicles and tanks poured across the causeway that separates the two countries. They came representing a special contingent under the aegis of the Gulf Cooperation Council, a league of Sunni-led Gulf states, but the Saudis were the major driver. The Saudis publicly announced that 1,000 troops had entered Bahrain, but privately they concede that the actual number is considerably higher.

If both Iran and Saudi Arabia see themselves responding to external threats and opportunities, some analysts, diplomats and democracy advocates see a more complicated picture. They say that the ramping up of regional tensions has another source: fear of democracy itself.

Long before protests ousted rulers in the Arab world, Iran battled massive street protests of its own for more than two years. It managed to control them, and their calls for more representative government or outright regime change, with massive, often deadly, force. Yet even as the government spun the Arab protests as Iranian inspired, Iran’s Green Revolution opposition movement managed to use them to boost their own fortunes, staging several of their best-attended rallies in more than a year.

Saudi Arabia has kept a wary eye on its own population of Shiites, who live in the oil-rich Eastern Province directly across the water from Bahrain. Despite a small but energetic activist community, Saudi Arabia has largely avoided protests during the Arab Spring, something that the leadership credits to the popularity and conciliatory efforts of King Abdullah. But there were a smattering of small protests and a few clashes with security services in the Eastern Province.

The regional troubles have come at a tricky moment domestically for Saudi Arabia. King Abdullah, thought to be 86 years old, was hospitalized in New York, receiving treatment for a back injury, when the Arab protests began. The Crown Prince, Sultan bin Abdul Aziz, is only slightly younger and is already thought to be too infirm to become king. Third in line, Prince Nayaf bin Abdul Aziz, is around 76 years old.

Viewing any move toward more democracy at home—at least on anyone’s terms but their own—as a threat to their regimes, the regional superpowers have changed the discussion, observers say. The same goes, they say, for the Bahraini government. “The problem is a political one, but sectarianism is a winning card for them,” says Jasim Husain, a senior member of the Wefaq Shiite opposition party in Bahrain.

Since March 14, the regional cold war has escalated. Kuwait expelled several Iranian diplomats after it discovered and dismantled, it says, an Iranian spy cell that was casing critical infrastructure and U.S. military installations. Iran and Saudi Arabia are, uncharacteristically and to some observers alarmingly, tossing direct threats at each other across the Gulf. The Saudis, who recently negotiated a $60 billion arms deal with the U.S. (the largest in American history), say that later this year they will increase the size of their armed forces and National Guard.

And recently the U.S. has joined in warning Iran after a trip to the region by Defense Secretary Gates to patch up strained relations with Arab monarchies, especially Saudi Arabia. Minutes after meeting with King Abdullah, Mr. Gates told reporters that he had seen “evidence” of Iranian interference in Bahrain. That was followed by reports from U.S. officials that Iranian leaders were exploring ways to support Bahraini and Yemeni opposition parties, based on communications intercepted by U.S. spy agencies.

Saudi officials say that despite the current friction in the U.S.-Saudi relationship, they won’t break out of the traditional security arrangement with Washington, which is based on the understanding that the kingdom works to stabilize global oil prices while the White House protects the ruling family’s dynasty. Washington has pulled back from blanket support for democracy efforts in the region. That has bruised America’s credibility on democracy and reform, but it has helped to shore up the relationship with Riyadh.

The deployment into Bahrain was also the beginning of what Saudi officials describe as their efforts to directly parry Iran. While Saudi troops guard critical oil and security facilities in their neighbor’s land, the Bahraini government has launched a sweeping and often brutal crackdown on demonstrators.

It forced out the editor of the country’s only independent newspaper. More than 400 demonstrators have been arrested without charges, many in violent night raids on Shiite villages. Four have died in custody, according to human-rights groups. Three members of the national soccer team, all Shiites, have also been arrested. As many as 1,000 demonstrators who missed work during the protests have been fired from state companies.

In Shiite villages such as Saar, where a 14-year-old boy was killed by police and a 56-year-old man disappeared overnight and showed up dead the next morning, protests have continued sporadically. But in the financial district and areas where Sunni Muslims predominate, the demonstrations have ended.

In Yemen, the Saudis, also working under a Gulf Cooperation Council umbrella, have taken control of the political negotiations to transfer power out of the hands of President Ali Abdullah Saleh, according to two Saudi officials.

“We stayed out of the process for a while, but now we have to intervene,” said one official. “It’s that, or watch our southern flank disintegrate into chaos.”

By BILL SPINDLE and MARGARET COKER

Still recovering from its own bloody sectarian strife, Iraq has been rattled by events in Bahrain, where a mainly Shia protest movement has been quelled by the island kingdom’s ruling Sunni minority, backed by forces from Saudi Arabia and several other Gulf states. After the Saudi troops moved into Manama, Bahrain’s capital, in mid-March, Iraqi members of parliament fired off a string of angry speeches.

Politicians from Iraq’s Shia majority, including a former prime minister, Ibrahim al-Jaafari, castigated the Saudi intervention. Some Sunni, Kurdish and Christian members of Iraq’s parliament also condemned the Saudis, but the speaker, Osama el-Nujaifi, who hails from a leading Sunni family in Mosul, Iraq’s strongly Sunni city in the north, decided to close parliament down for ten days. Some Iraqi politicians, including Iyad Allawi, a Shia who leads the main Sunni block in parliament, said that a hiatus was required to stop sectarian tension boiling over in parliament.

But it is still bubbling. Politicians and religious leaders have continued to respond to events in Bahrain along sectarian lines. Muqtada al-Sadr, a populist Iraqi Shia cleric with a big following who leads his movement from a temporary home in Iran, has castigated the intervention too. Members of his political party have called for Bahrain’s embassy in Baghdad to be closed, whereas Haider al-Mulla, a Sunni MP, blames the uprising in Bahrain on Iranian interference and says that Iran’s embassy in Baghdad should be shut.

The prime minister, Nuri al-Maliki, a Shia who spent several years in exile in Iran, has also slammed Saudi Arabia, embarrassing his own ministry of foreign affairs by disparaging so powerful a neighbour ahead of a summit of the Arab League planned for May. Far from curbing his language, Mr Maliki later went on to say that the Saudi intervention in Bahrain could lead to a sectarian war in the region.

The authorities in Bahrain have since suspended flights to Iraq, as well as to Iran and Lebanon, where Hizbullah, the Shia party-cum-militia which underpins Lebanon’s current coalition government, has praised Bahrain’s protesters. Hassan Nasrallah, Hizbullah’s leader, enraged Bahrain’s ruling al-Khalifa family by likening it to Libya’s Qaddafis. This, said Bahrain’s foreign minister, Khalid al-Khalifa, was tantamount to a “terrorist threat”. Hizbullah, he claimed, was training Bahrain’s opposition; the leader of one of Bahrain’s more radical opposition movements, al-Haq, had stopped off in Beirut to meet Hizbullah people on his way back from exile in London to Bahrain. Newspapers in the Gulf say the authorities in Bahrain and the United Arab Emirates have deported several hundred Lebanese Shia expatriates.

Iraq’s parliament has now reopened but the row has weakened a coalition government that is in any case built on a fragile ethno-sectarian power-sharing agreement. More than a year after elections, no defence or interior minister has been appointed. Iran, it is said, has been promoting its own candidate for the interior ministry, whereas the defence ministry was promised to Mr Allawi’s Sunni-backed block. But Mr Maliki has rejected several of Mr Allawi’s nominees. Although the prime minister has a firm grip on the security services and has been trying to expand his own executive powers, he is looking more isolated as erstwhile allies complain that he has broken the promises he made when he was putting his ruling coalition together.

Mr Sadr has sought to capitalise on Mr Maliki’s weakness by making himself look less sectarian, for instance by holding press conferences alongside Mr Allawi. The Sadrists have also declared themselves in favour of a freer press and have sounded sympathetic towards protesters on the street. If relations with Mr Maliki worsen, the Sadrists may throw their weight wholeheartedly behind the protesters, who have so far been mainly secular. But some of them say they would work with Mr Sadr’s anti-Western religious movement if that would help their cause.