Saudi Arabia halts $4B in Lebanese deals amid Iran dispute

‘We are keen on keeping the relations brotherly and friendly’.

A $1bn deal to equip the internal security forces is also being stopped. Bassil heads the Free Patriotic Movement, which is one of the strongest allies of the Iran-backed Hizbullah.

On Friday, SPA quoted an unnamed official as saying Saudi Arabia had always stood with Lebanon and supported the country through hard times.

Nasrallah said the two countries have been pushing to send global ground forces to Syria because they “are not ready to accept a political solution to the conflict in Syria, which is why they want to continue the war and destroy it”.

A Lebanese security source said Lebanon had not received a formal notification of the decision.

Iran used to export about 2.2 million barrels per day (bpd) of crude before 2012, which had since dropped to about 1.1 million bpd after sanctions imposed by world powers to curb Tehran’s nuclear programme cut oil shipments.

Lebanon’s prime minister on Friday urged Saudi Arabia to reconsider a decision to suspend $3 billion in military aid in protest against Hezbollah, the Shiite militant group supporting Syria’s regime.

Saudi Arabia’s decision to conduct the review was taken in light of Lebanon’s recent foreign policy positions, including its failure to condemn Iran’s attack on the Saudi embassy and consulate in Iran, according to the UAE’s state news agency WAM.

“Saudi Arabia’s move also is indicative of the fact that Saudis are not seeking to counter Daesh (also known as ISIL), because the Lebanese Army is now fighting against Daesh, al-Nusra Front and other terrorist groups in Lebanon”, he noted. He called on the Lebanese Cabinet to meet over the issue.

The Lebanese army is generally seen as a unifying force in the country, and draws its ranks from all of Lebanon’s sects. However, it’s widely viewed as being much weaker than Hezbollah.

He went on, however, to stress the GCC’s continued support for the Lebanese people “and their right to live in a safe, stable and sovereign state”, adding that GCC states “look forward to seeing Lebanon restore its vitality, economic prosperity and authentic Arab role” in the region.

Even data from industry firm Baker Hughes showing the USA oil rig count at its lowest since December 2009 after nine straight weeks of declines failed to lift crude prices.