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Saudi US Relations: Amidst the increasing tension with Iran, America has suffered two major setbacks from its close allies Saudi Arabia and the United Arab Emirates (UAE). On one hand, both countries have started withdrawing billions of dollars from American treasury bonds, while on the other hand they also refused to support a possible American attack on Iran. These incidents are considered important for America’s diplomatic and economic situation.

Billions of dollars withdrawn from US treasury

According to official data, Saudi Arabia reduced its stake in US treasury bonds by $10.8 billion in the month of March. After this, its total stake in the US Treasury has come down to $149.6 billion. Similarly, UAE also withdrew about 5.8 billion dollars, after which its share came down to 114.1 billion dollars. Overall, both the countries have taken out about 15 billion dollars from the US treasury.

Why is this step important for America?

According to Reuters report, America raises investments from all over the world through treasury bonds and this money is used in development works and strengthening economic activities. In such a situation, if big investor countries start withdrawing their capital, it may affect the economic stability of America and the strength of the dollar.

Experts believe that this step by Saudi and UAE may also weaken the confidence of other countries. Due to this, it may become expensive for America to take loans and the possibility of increase in interest rates may increase.

Shock to America regarding attack on Iran

According to reports, US President Donald Trump was very close to military action on Iran, but Saudi Arabia and UAE refused to support this plan. Both countries said that in the event of a war, they may have to suffer huge losses, especially regarding oil bases and regional security. After this Trump decided to postpone the attack. Saudi and UAE have been considered close allies of America for a long time in the Middle East, hence their stance is considered important.

Efforts for diplomatic solution intensified

Now, under the mediation of Qatar, talks regarding the nuclear deal between America and Iran are progressing. However, Iran has made it clear that it will not compromise on issues like Hormuz Strait and uranium shifting. Tension remains in the area, but efforts are currently underway to find diplomatic routes.

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