Iran and Saudi Arabia have long been engaged in heated rivalry and conflict in the Middle East. These two regional powers are both major oil-exporting countries; in major foreign policy issues, therefore, oil is used as an important tool to pursue goals. Iran and Saudi Arabia have a long history of differences on oil policies, but one of the most severe differences emerged in 2011-2016, along with escalating tensions between the two countries in the region, which heavily shaped oil market trends in this period. In an attempt to analyze these oil market trends, the main question addressed in this article concerns Saudi Arabia’s decisions to use oil as a weapon against Iran in 2011-2016. The article reveals that the perception of expanding Iranian influence in the Middle East drove Saudis to resort to oil as weapon against Iran in 2011-2016. However, restrictions on the use of this tool led Saudi Arabia to withdraw from most part of this policy, especially in the oil market. The article uses neoclassical realism approach and illustrates Saudis’ direct and indirect use of oil weapon against Iran, and analyzes the outcomes of this offensive oil policy for the two countries in particular, and for the international oil market in general.
