London Daily

Focus on the big picture.
Friday, Jan 30, 2026

Saudi prince, rebuked by West, faces dilemma over Russia and China

Saudi prince, rebuked by West, faces dilemma over Russia and China

The United States and Britain are ramping up pressure on Saudi Arabia to pump more oil and join efforts to isolate Russia, while Riyadh has shown little readiness to respond and has revived a threat to ditch dollars in its oil sales to China.

British Prime Minister Boris Johnson flew into the world's biggest crude oil exporter on Wednesday, a day after U.S. security advisor Brett McGurk arrived with a U.S. delegation.

Saudi Arabia and its neighbour the United Arab Emirates, which are among just a handful of producers with spare capacity, have snubbed Western calls for more crude to cool red-hot prices and have stuck to an OPEC+ supply pact with Russia and others.

Crown Prince Mohammed bin Salman, the kingdom's de facto ruler, has faced sharp Western criticism over the 2018 murder of Saudi journalist Jamal Khashoggi, Riyadh's human rights record and the Yemen war. U.S. President Joe Biden has, so far, refused to deal directly with the prince, who is widely known as MbS.

With U.S-Saudi relations at a low point, MbS has responded by strengthening ties with Russia and China, even though the kingdom still has close security ties with Washington.

McGurk and other U.S. officials met senior Saudi officials on Tuesday, pressing them to pump more oil and find a political solution to end the war in Yemen, where Saudi-led forces are battling the Iran-backed Houthi group, two sources said.

"You would be wrong if you think Washington would give up on these two files," one of the two sources, who is familiar with the discussions, told Reuters.

A senior U.S. administration official said McGurk was in the Middle East "discussing a wide range of issues, including Yemen", but declined to elaborate.

The British prime minister, meanwhile, described Saudi Arabia and the UAE as "key international partners" in the effort to wean the world off Russian hydrocarbons and put pressure on Russian President Vladimir Putin after Moscow invaded Ukraine.

But Abdulkhaleq Abdulla, a prominent Emirati political analyst, said Johnson should not expect much. "Boris will go back empty handed," he wrote on Twitter.

The Saudi government did not immediately respond to a Reuters request for comment on the U.S. and British visits.

For now, Saudi Arabia has shown no sign of abandoning an oil supply pact forged between the Organization of the Petroleum Exporting Countries and allies, including Russia, which has seen the group known as OPEC+ hiking oil output only gradually.

SHORT SHRIFT


At the last OPEC+ meeting on March 2 - less than a week after Russia invaded Ukraine and as the West ratcheted up sanctions on Moscow - ministers dodged the Ukraine issue in talks and swiftly agreed to stick to existing policy.

Meanwhile, Riyadh has signalled it wants closer ties with Beijing by inviting Chinese President Xi Jinping to visit this year. The Wall Street Journal said Saudi Arabia was in talks to price some crude it sells to China in yuan.

"If Saudi Arabia does that, it will change the dynamics of the forex market," said a source with knowledge of the matter, adding that such a move - which the source said Beijing had long requested and which Riyadh threatened as far back as 2018 - might prompt other buyers to follow.

The Saudi energy ministry declined to comment, while state oil giant Saudi Aramco did not respond to a request for comment.

One diplomat said Riyadh was turning to "old threats" to push back at the West, although the diplomat and others say any shift to the yuan would face practical challenges, given crude is priced in dollars, the Saudi riyal is pegged to the greenback and the yuan does not boast the same role as a reserve currency.

"It would be reckless, given global oil pricing in dollars and the currency peg, not to mention the amount of Saudi debt priced in dollars, its reserve assets in dollars and their holdings of U.S. equities," said Karen Young, a resident scholar at the American Enterprise Institute.

"There may be some contracts in yuan between Saudi Arabia and China, but there is no reorientation of Saudi monetary policy," she said.

The Saudi central bank had assets worth $492.8 billion at the end of January, including $119 billion in U.S. Treasuries.

The government had foreign currency debt - mostly in dollars - of $101.1 billion at the end of 2021, while the Saudi sovereign wealth fund held $56 billion in U.S. equities.

Monica Malik, chief economist at Abu Dhabi Commercial Bank, said Saudi Arabia could slowly shift some sales to yuan. "A gradual shift would have a limited impact," she said.

And even as U.S. officials were meeting in Riyadh, the U.S. State Department said on Tuesday that Washington was not asking its allies to choose between the United States and China.

Newsletter

Related Articles

0:00
0:00
Close
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
×