Stocks Slump After Saudis Threaten Nukes Against "Nefarious" Iran

Tyler Durden's picture

Earlier this month, a black swan landed in the Mid-East when Saudi Arabia executed prominent Shiite cleric Nimr al-Nimr along with 46 other “terrorists.”

Most of those executed were not Shiites but that didn’t matter. Al-Nimr was a key voice among Saudi Arabia’s dissident Shiite minority and his death reverberated across the Shiite community, sparking mass protests from Bahrain to Pakistan.

Al-Nimr was executed on a Saturday. By Sunday evening the Saudi embassy in Tehran was ransacked and burned and Riyadh had cut diplomatic ties with Iran. The other Gulf monarchies followed suit and by the end of the following week, the stage was set for widespread sectarian strife.

As we wrote in the aftermath of al-Nimr’s execution, the ordeal couldn’t have come at a worse time for the Obama administration. With the countdown to Implementation Day for the nuclear deal under two weeks, the last thing The White House needed was to be thrust into the middle of a dispute between a traditional ally (the Saudis) and a new “friend” (the Iranians).

The Sunni world (not to mention the Israelis) already feared that the lifting of international sanctions against Iran and the attendant cash windfall would strengthen Tehran just as the Ayatollah looks to preserve and expand the so-called Shiite crescent by consolidating his influence in Iraq and bolstering the Assad government in Syria. The money, some critics say, will invariably be channeled to Hezbollah and Iran’s Shiite militias which effectively function as Iraq’s only effective security force. Additionally, the nuclear deal’s opponents wonder if Iran will plow its newfound wealth into the country’s famous ballistic missile program, which is alive and well as demonstrated by the test-firing of the Emad in October.

And so, with the Saudis already wary of America’s rapprochement with the Iranians and with Riyadh struggling to come to terms with how its staunch ally in Washington could seriously ponder taking steps to effectively wire Iran $100 billion while freeing up an extra $2 billion per month in oil revenue, the Sunni and Shiite powers nearly came to blows on the eve of the Nuclear Deal’s implementation.

The Saudis, like the Israelis, believe that the Obama administration's claims regarding Iran's nuclear ambitions and capabilities are largely dubious. "Even after the signing of the nuclear agreement, Iran has not abandoned its aspirations to acquire nuclear weapons," Israeli PM Benjamin Netanyahu said, in a statement following the accord's implementation on Saturday.

On Tuesday, we got the first sign that Obama's counterintuitive nightmare is set to come true as Saudi Arabia indicated it will pursue a nuclear weapon if Riyadh believes the Iranians are up to anything "nefarious." 

"Saudi Foreign Minister says his country will not rule out seeking nuclear weapon if Iran gets one," Reuters reported this afternoon, citing an interview with Adel bin Ahmed Al-Jubeir. "The lifting of Iran sanctions will have a negative impact if Iran uses proceeds for 'nefarious activities,'" Al-Jubeir continued, before adding that U.S. involvement is key to regional and world stability.

While it's not entirely clear what "nefarious activities" Al-Jubeir was referring to, pretty much anything Tehran does is viewed as "nefarious" by Riyadh, which means you can expect plenty more nuclear sabre rattling in the near future as Obama looks on at the Mid-East nuclear arms race he inadvertently set in motion.

Today, nuclear war is apparently bad for stocks:

We close with an excerpt from a New York Times op-ed penned by Al-Jubeir:

While Iran claims its top foreign policy priority is friendship, its behavior shows the opposite is true. Iran is the single-most-belligerent-actor in the region, and its actions display both a commitment to regional hegemony and a deeply held view that conciliatory gestures signal weakness either on Iran’s part or on the part of its adversaries.


Saudi Arabia will not allow Iran to undermine our security or the security of our allies. We will push back against attempts to do so.

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tncaver's picture

This has nothing to do with this story. Tell me if y'all have heard this. What's green and smells like pork ?

aint no fortunate son's picture

but, but, a nuclear war would be a Keynesian wetdream!

Soul Glow's picture

What's that like, midget trannie porn?

nuubee's picture

Tylers? No mention of this:

At this point, it's pretty clear that Hillary would rather burn the nation down than not be president.

remain calm's picture

Saudi ain't nuking anyone YET. HOWEVER, they are going to devalue the Real

Occident Mortal's picture

The real question here is how long can the House of Saud continue before it is forced to unpeg from USD?

Tom Servo's picture

3:30 ramp started 5 minutes early!  dammit!


Soul Glow's picture

Americans won't know what hit them until their Q1 statements.  People don't follow stocks day to day, they are even told not to by their financial advisors.  Once they see their accounts are in the red they'll want to sell, thus the "not bottomed until oversold" meme that is being spread.  Until then it'll be a rollercoaster.  And after, a crash.

mtndds's picture

3:30 pm Ramp is here.  Good job PPT you fucking cunts.  Even threat of nuclear war wont stop the PPT.  

Stuck on Zero's picture

Will Merkel open the doors for 100 million radioactive refugees?

Manthong's picture

Hey, if you Saudi guys nuke Iran you will be incinerating a whole lot of perfectly good heads that could have been chopped off to satiate your inner psychopaths.

Tall Tom's picture

The threat of Nuclear War is bullish...especially for Defense Contractors. The Markets will not close because of that. Why should the PPT?


Besides there was no threat. Saudi already has the nukes.


The Saudis already have deployed and detonated Neutron Bombs or Low Yield Fusion Bombs in their war against Yemen. Here is a detonation.


Here is another one...


It claims that Israel was behind the strike.


Here is a video. You can actually determine that the Shock Wave must have been intense due to the distance and all three photographers, at three different vantage points, were thrown to the ground.


Perhaps the Yemenis should have sunk those 10 Saudi Warships.


Perhaps Iran is a little bit more pissed off than they are saying.


Riyadh needs to be nuked.


That is what the Saudis fear. The execution of the cleric is just another affront to strengthen Iranian resolve....not to mention the alliance that Iran has with Yemen.


Here is the detonation of a Nuclear Warhead in Syria.


No worries. Coming to the USA very soon when they let in those "refugees"


There is always blowbackand the Nuclear Genie is out of the bottle.


This is just the beginning....because our strategists think that we can win a Nuclear War.


Escaltion time is approaching rapidly.

Soul Glow's picture

[I]t's pretty clear that Hillary would rather burn the nation down than not be president.

That's the defintion of jealousy.  When someone can't get what they want and so the person destroys it so no one else can have it either.  This is how psychopaths act.  This is what Wall Street is doing.  They are burning the earth down because they realize not everybody will go along with their NWO.

Keep stacking and fight the power.

Chupacabra-322's picture

EXCLUSIVE: Hillary Clinton's emails on her unsecured, homebrew server contained intelligence from the U.S. government's most secretive and highly classified programs, according to an unclassified letter from a top inspector general to senior lawmakers.

Fox News exclusively obtained the unclassified letter, sent Jan. 14 from Intelligence Community Inspector General I. Charles McCullough III. It laid out the findings of a recent comprehensive review by intelligence agencies that identified "several dozen" additional classified emails -- including specific intelligence known as "special access programs" (SAP).

That indicates a level of classification beyond even “top secret,” the label previously given to two emails found on her server, and brings even more scrutiny to the presidential candidate’s handling of the government’s closely held secrets.

Winston Churchill's picture

Her health problems are about to prove fatal if she doesn't bow out.

She's bluffed this to the limit, but no way is Bill going to jail.

BlindMonkey's picture

She still has the pardon from Barry to look forward to.

Baldrick's picture

she has to be charged with a crime to be eligible for a pardon.

BlindMonkey's picture

IIRC that was not what Ford did to Nixon.   I thought the pardon was blanket and prior to charges.

bid the soldiers shoot's picture

He'll have to go to jail to visit her.

insanelysane's picture

Some things are worth a lot of money.  Intel being one of them.  Imagine when she's president she'll connect the Clinton Foundation network to the NSA network and mine for nuggets.

Remember this gem from her hubby's past when missile tech was transferred to our friends in China.

bid the soldiers shoot's picture

Commuting sentences and granting pardons will be Hillary's forte.  She has to make between $20 and $30 million doing that.  More if she gets elected to a second term.  (why wouldn't she?)

Paveway IV's picture

What I would like to hear from U.S. leaders:

"To our dear friends Saudi Arabia and Israel: Kiss my ass. An attack on Tehran or the Iranian people will be considered an attack directly on Washington, D.C. and U.S. soil - we will respond in kind. We will level either of your shitty little countries if our nukes manage to get there before the Russian nukes. Either way, you will cease to exist."

What I would probably hear from U.S. leaders:

"Strap on your kneepads, Congressmen. Bibi and the King are on their way over and demand 'servicing' - you know the drill, you little bitches..."

Baby Bladeface's picture

So nuclear sanctions will now to place on Saudi Arabia? Holding breath while waiting I advise against.

"Iran has not abandoned its aspirations to acquire nuclear weapons"

Bubo Netanyahu tape loop playing since at least 2 decades now...

Soul Glow's picture

What's green and smells like pork ?

The Fed's rate hike?

Mentaliusanything's picture


What's green and smells like pork ?

The 3.30pm Ramp

TheFutureReset's picture

Interesting, a war between Iran and Saudi would finally be bullish for oil. War is the new stimulus. 

Neo's picture

War as stimulus is hardly new, in fact it is the goto solution for any problem when all else fails.


Hitlery_4_Dictator's picture

They already have them, via the US. What a bunch of whiners. This is a non-story and an excuse.

Winston Churchill's picture

If you bothered to do a little research, they've had them for 25 years and haven't used them.

They are the rational player in all this, which makes everyone else, stark raving

lunatics for pushing them so hard.

Bloppy's picture

Just leak NFLX "results" early, that'll fix it

indygo55's picture

Saudi nukes from the US and Iranian nukes from Russia. What could possibly go wrong? 

sandman.s's picture

Michelle Obama's pussy.

Canadian Dirtlump's picture

Q: Green / Pork.


A: Not Jack Lew's fridge at the treasury dept.


Regarding this bullshiit.. I almost wish the Saudis would start something already. They are already getting skull fucked in Yemen ( as is the UAE and Blackwater / Xi / Academi /  ROBOAIDS or whatever they are called these days ). Apparently the bodies there are more ethnically / culturally diverse than Toronto. Their "investment in Syria has proven to be like heating one of their royal palaces with dollar bills. Post Nimr Execution gas had been thrown on the tinder pile.

Enough. Let's get the fuck busy already.

hedgeless_horseman's picture



That should perk up WTI and its derivative the SP500.


hedgeless_horseman's picture



It's almost like it was timed for the 3pm ramp job. 


Squid-puppets a-go-go's picture

i thought itd be great for stawx? I mean, a nuke is the ultimate broken window maker...

Urban Roman's picture

Aaaand it's 3:30.

Do you know where your algos are?

Damn that looks easy. Buy at 2:45 and sell at 3:45. Why don't I ever do that?

mandalou's picture

Those Saudi's are funny jews.

Haole's picture

Rock the Casbah.

Soul Glow's picture

What could go wrong?

JustObserving's picture

Saudi Arabia funded Pakistan's nukes.  So they have easy access to nukes.

It's time that the corrupt, criminal, cruel cabal that runs S.A, met its karma.

JenkinsLane's picture

The Senate Report on the BCCI (Bank of Cocaine & Corruption International), was a doozy. 

BullyBearish's picture

Me thinks Iran can go to the local Russian "Rent a Nuke Store" any time they want...