Saudi Arabia has publicly called for regional stability and even peace. However, behind the scenes, the kingdom is pushing the White House to continue military operations against Iran, as oil prices hold firmly above $100 per barrel—a move that could trigger demand destruction.
According to multiple reports from Washington on March 24, Crown Prince Mohammed bin Salman has been urging the Trump administration to persist with military action against Iran, viewing the current conflict as a rare opportunity to reshape the regional balance of power. Sources from a major U.S. media outlet in New York indicated that Saudi Arabia fears a prolonged conflict could lead to further attacks on its oil infrastructure.
It has been reported that Mohammed bin Salman has even advocated for ground operations.
Saudi officials have denied allegations that Mohammed bin Salman lobbied the White House to take a tougher stance against Iran. An official Saudi statement said, "The kingdom has consistently supported a peaceful resolution to this conflict, even before it began."
The major media outlet reported that the White House declined to comment.
As disruptions related to the Strait of Hormuz have shifted from risk premium to actual supply constraints, Brent crude remains above $100 per barrel, with WTI trading in the $90s. Regional shipping remains obstructed. Although Saudi Arabia can reroute some oil via its East-West Pipeline to Yanbu, the system's capacity is far below normal export levels. In other words, it only mitigates the impact but falls short of replacing lost volumes.
Higher oil prices help offset budget pressures and support the kingdom's ambitious spending plans linked to "Vision 2030." However, the same disruptions driving prices higher are directly impacting the kingdom, as retaliatory attacks by Iran have targeted regional energy infrastructure. Sources noted that a half-finished war could leave Saudi oil infrastructure vulnerable to further strikes.
Washington is weighing options ranging from de-escalation to more aggressive strikes on Iranian export infrastructure, including key nodes such as Kharg Island. Each option carries significant risks, one of the greatest being sustained triple-digit oil prices—which, while boosting supplier revenues, also threaten demand.
Saudi concerns extend beyond oil—a protracted conflict could undermine investor confidence in numerous ambitious ongoing projects aimed at transforming the kingdom from an oil-dependent economy into a global commercial hub.