Silicon Valley Bank collapse stirs up fears

The collapse of Silicon Valley Bank brings back memories on Capitol Hill of rescuing the financial markets during the 2008 collapse, raising concerns among lawmakers that taxpayers may have to pay to bail out risky financial bets. 

President Joe Biden assured the nation that no taxpayer money will be used after lawmakers warned over the weekend they will not support bailouts, which are unpopular with voters.  

The president said the money to cover depositors would come from the fees banks pay into the Federal Deposit Insurance Corporation (FDIC) and promised that managers at failed banks would be fired and stock-holding investors would not be protected — sidestepping a fight with Congress.  

Still, there is already disagreement over what constitutes a bailout and the fund being used to pay depositors — including over the US$250,000 for standard insurance from the FDIC — is backed by the full faith and credit of the United States government.

Some conservative Republicans are already making the argument that covering depositors above the FDIC’s regular US$250,000 deposit insurance limit is creating a future moral hazard and could embolden risky behavior heading forward.  

A GOP aide predicted that more conservatives would push that argument once they return to Washington and have more time to examine the details of Biden’s intervention.  

“I’m sure there will be people who take the view that there shouldn’t be government intervention on any of this,” the aide said.  

Lawmakers on both sides of the aisle spent Sunday assuring voters they were against a bailout.

Sen. Bob Menendez said, he was not ready to offer them a bailout by any stretch of the imagination, while Rep. Nancy Mace said, “It’s still very early. I don’t even think it’s been 48 hours. But at this time, I would not support a bailout.”

Biden’s decision to intervene and pledge on Monday that no depositors will lose their money was viewed as an effort to avoid repeat of the panic that gripped the financial markets in 2008 after the Bush administration decided not to rescue Lehman Brothers Inc., a major investment bank.  

Former Sen. Ben Nelson, who was in the Senate when Lehman Brothers collapsed, said then-Treasury Secretary Hank Paulson and other senior administration officials were uncertain at first about how to respond to the crisis. 

“It isn’t quite déjà vu because it’s different. First of all, Biden stepped forward and said this is what it’s going to be. It isn’t a bailout, it’s going to be making sure depositors are covered,” Nelson said.  

Nelson said Biden appears to have learned a key lesson from the fall of 2008, the federal government must act quickly and decisively to prevent fear from quickly spreading through the financial markets.  

“I don’t know how many days it was, the secretary of the Treasury was getting together with us trying what to do. There wasn’t any plan that I can recall that came together right away as quickly as this did,” he said, comparing the federal response in 2008 to today.  

Liberals, meanwhile, are going on offense by blaming Silicon Valley Bank’s collapse on a banking deregulation bill signed in 2018 under President Trump.  

“In 2018, Donald Trump signed a law to deregulate large banks like SVB and Signature Bank. In opposing Trump’s decision to roll back the toughest regulatory requirements in Dodd-Frank, I warned at the time that this could create serious vulnerabilities and may make it more difficult for regulators to spot a threat to financial stability from a larger bank while increasing competitive pressures on community banks and credit unions, Sen. Jack Reed, a senior member of the Senate Banking Committee, said in a statement Monday afternoon.  

The Economic Growth, Regulatory Relief, and Consumer Protection Act, which passed the Senate with bipartisan support in 2018, scaled back some requirements of the 2010 Dodd-Frank Act, which Congress passed after the 2008 financial collapse.  

Critics say it contributed to the downfall of Signature Bank, which the FDIC took control of Sunday.  

Together they mark the second- and third-biggest bank collapses, respectively, in US history and kindled fears of runs on regional banks across the country. 

Shares of San Francisco-based First Republic bank fell 62% on Monday while Western Alliance Bancorp shares fell 47% and PacWest Bancorp shares dropped 21%. 

“Let’s be clear. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by Donald Trump that I strongly opposed,” Sen. Bernie Sanders said.   

“Five years ago, the Republican Director of the Congressional Budget Office released a report finding that this legislation would ‘increase the likelihood that a large financial firm with assets of between $100 billion and $250 billion would fail,” he said.  

Sen. Elizabeth Warren wrote in a New York Times op-ed Monday, “Had Congress and the Federal Reserve not rolled back the stricter oversight, S.V.B. and Signature would have been subject to stronger liquidity and capital requirements to withstand financial shocks.” 

Some Republicans, on the other hand, blamed Silicon Valley Bank’s downfall on a lack of proper oversight from the Federal Reserve Bank of San Francisco. They argue that federal regulators have become too preoccupied with climate and other woke issues to watch out for fundamental problems.  

“There’s no mystery what transpired. They had 10% insured deposits; they had massive unrealized losses because their portfolio was weighted in long-duration debt so they had a liquidity mismatch. It didn’t matter what artificial regulatory you put into place, you could not overcome the underlying fundamentals of the mismatch and the high rate of uninsured deposits,” said a second GOP aide.  

“How the hell did the regulator miss this? That’s the whole point of supervisory examination, to spot this type of thing,” the aide added.  

The Republican aide argued that Silicon Valley Bank’s collapse doesn’t call for a new wave of regulation because its circumstances of its liquidity shortfall don’t affect the vast majority of other banks.  

“There was no bank in the country with a larger liquidity mismatch than SVB. Nobody else even comes close to the problem that this bank had. That’s what makes it so astonishing that the regulators missed it,” the GOP aide added.  

Silicon Valley Bank reported in a December regulatory filing that 95 percent of its bank deposits were uninsured.  

Biden administration officials hastily convened a call with Republicans and Democrats in the House and Senate Sunday evening to brief them on the plans to insure the deposits at Silicon Valley Bank and Signature Bank.  

The briefing was convened so quickly that only a few Senate Republicans participated, including Sen. Mitt Romney (Utah) and Senate Republican Whip John Thune’s staff.  

The administration held a second briefing midday Monday to bring Republican senators who missed the Sunday call up to speed.  

The quick outreach appeared to pay off when Romney voiced support for the administration’s actions during the Sunday call and then tweeted his support.  

Romney retweeted a statement from the Federal Reserve announcing the plan to ensure depositors’ savings and praised it as the right decision.  

Democratic leaders on Monday applauded the Biden administration for taking quick action and urged colleagues to look closely at the failure of Silicon Valley Bank to weigh whether more regulation is needed.  

“We are grateful that the Biden administration, Federal Reserve and FDIC took swift action to safeguard depositors and maintain confidence in the banking system,” Senate Majority Leader Charles Schumer and House Democratic Leader Hakeem Jeffries said in a joint statement.  

“Americans should have faith that bank regulators are doing everything they can to protect consumers. In the coming days and weeks, Congress will be looking closely at the causes behind the run on Silicon Valley Bank and other banks and how we can prevent a similar crisis in the future,” they said.  

The vast majority of congressional Republicans stayed quiet on Monday, with neither Speaker Kevin McCarthy nor Senate Republican Leader Mitch McConnell commenting on the decision to cover the potential losses of bank depositors.  

McCarthy told Fox News Sunday that the administration had the tools to handle the current situation but voiced hope that regulators would find a larger bank to buy Silicon Valley Bank to cover the depositors.  

“This bank is a unique bank, where they do have assets, they have an amazing clientele, it’s something that could be very possible [for] someone to purchase this bank,” he said, describing that as “the best outcome.”  

 

Iran to supply Pakistan another 100MW electricity

Iranian Energy Minister Ali-Akbar Mehrabian announced completion of a power transmission line to Pakistan with the aim of boosting electricity exchanges between the two countries, IRNA reported.

The two countries signed a contract on Monday to officially use the mentioned transmission line for exchanging up to 200 megawatts (MW) of electricity in the near future.

The contract was signed in a ceremony attended by Mehrabian and his Pakistani counterpart Khurram Dastgir Khan.

"The electricity transmission line between Iran and Pakistan was designed and built in less than a year with a capacity of 200 megawatts," Mehrabian told the press on the sidelines of a meeting with Dastgir Khan prior to the signing ceremony.

“The necessary experiments and tests have been carried out on this line and it is now electrified,” he said.

"In today's meeting with the minister of energy of Pakistan, there were good discussions about the exchange of electricity through this line," Mehrabian added.

The official put the current value of annual trade between the two countries at over two billion dollars, adding that with the construction of this line, the volume of electricity exchanges between the two countries will increase to 200 megawatts which will be a significant boost for the economic ties.

Dastgir Khan for his part referred to his previous trip to Iran saying, “In this trip, the progress of the previous agreements regarding electricity exchanges between the two countries through the electricity transmission line was pursued and efforts were made to reach a final agreement.”

Emphasizing the necessity of developing and deepening the relations between the two countries he added, "It is hoped that we will witness the development of electricity exchanges between the two countries with the final agreement following the formation of technical and commercial teams."

This was the second meeting of the energy ministers of the two neighboring countries in less than a year. Dastgir Khan met with Mehrabian during his trip to Tehran last June.

 

 

Growing Chinese influence in West Asia

The announcement of an Iranian-Saudi détente after seven years took the international community by surprise. What has perhaps emerged as a bigger surprise is that the deal between Tehran and Riyadh was mediated by China and announced at a ceremony in the country’s capital Beijing.

While Iraq and Oman had tried to bring the two sides back together, it was the Chinese government that managed to clinch a deal in an impressive display of its diplomatic muscle. 

China previously avoided engaging in conflicts between countries beyond its borders, but that policy appears to be changing as it comes on the backdrop of Beijing’s peace proposal to end the Ukraine war that was appreciated by both Kyiv and Moscow.

For many decades, the dominant outside force in West Asia has been the United States, despite objections by a number of regional governments. Washington has hundreds of military bases amid the Pentagon’s efforts to maintain the US hegemony in the region.

Over the past two decades alone, the United States, under the name of its war on terror, has waged wars and triggered conflicts that have seen an unprecedented sharp rise in terrorism and terrorist groups.

With the blessing of Washington and its key regional ally, Israel, the newly formed terror groups under war on terror have killed hundreds of thousands of civilians, especially in Afghanistan Iraq, Syria and Libya. Millions of others have either been injured or displaced from their homes because of America's disastrous foreign policies.

While the US waged war on Afghanistan, Iraq, and indirectly on Syria and Yemen, it has also played a major role in destabilizing West Asia by interfering and fomenting unrest and terror in countries such as Iran and Lebanon while at the same time using all its means to pit one country against the other in the region.

American arms manufacturers and the Zionist regime has been the main beneficiary as a result of Washington’s military adventurism at the expense of the vast number of civilian bloods that has been shed.

Some in West Asia have mistakenly relied on the US for their security purposes, not realizing that once America’s interests are no served by that country, Washington simply abandons it along with all of its alleged security guarantees.

This has been witnessed in various times, most notably in Afghanistan. To a lesser extent, Saudi Arabia has felt skeptic over the US support for the war on Yemen.

China's role in securing the Saudi-Iran deal is a tricky test for the US. Scenes of Wang Yi, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee and director of the Office of the Central Foreign Affairs Commission; Ali Shamkhani, the secretary of Iran’s Supreme National Security Council; and Minister of State and National Security Adviser of Saudi Arabia Musaad bin Mohammed Al Aiban posing for pictures during a meeting in Beijing contains an element that is sure to make officials in Washington feel deeply uneasy.

The role of China as a peace broker in a region where the US has long wielded influence will take the Pentagon aback. The White House says the US is closely monitoring Beijing's behavior in West Asia and elsewhere. 

The wider picture will be viewed by Washington that some in West Asia have come to the conclusion that their dependency on the US no longer serves their interests.

China has no military bases in West Asia. In fact, China has no bases anywhere in the world. The only Chinese soldiers based outside the country are the ones serving under the UN peacekeeping force in Africa.

Beijing does not wage wars, nor does it have any desire in waging or instigating wars or conflicts. It does not even seek to compete with the United States in the fields of economy or military. 

Experts say China is now the number one economic powerhouse in the world and that appeal to nations in West Asia and beyond.

Over the past decade, many have come to their senses that forging closer ties with China brings economic prosperity for their own people, with no strings attached. 

Unlike Washington, Beijing does not set conditions or ask favors from other countries who seek to trade and cooperate with it.

In a further sign that the Saudis are looking to forge closer ties with America's foes, last year Riyadh and Beijing held talks over the export of Saudi oil in the Chinese currency and not the dollar. 

The US has been viewing China’s growing ties with regional countries as a threat to its own interests in West Asia, and for this reason it has raised tensions with China. 

It is US aircraft carriers sailing next to Chinese waters and not the other way around. Washington has also made ludicrous accusations of a Chinese weather balloon that Beijing admitted strayed off course, as an espionage object and dramatically used fighter jets to shoot it down. 

The fear-mongering and disinformation campaign against China clearly hasn't worked as evidenced by Tehran and Riyadh signing a deal in Beijing to restore their full diplomatic relationship.

The US military approach has brought nothing but disaster to West Asia, while the Chinese approach of advocating peace has been met with international praise, with the exception of the US and Israel of course that sought to side with the Saudis to isolate Iran.

What will disappoint the US the most is that the China-backed Iran-Saudi deal also offers the hope of calming the situation on the ground in other West Asian countries, such as Yemen, Lebanon and Iraq. 

Former senior American diplomat Jeffrey Feltman said China's role was the most significant aspect of the agreement.

"This will be interpreted - probably accurately - as a slap at the Biden administration and as evidence that China is the rising power," said Feltman, now a fellow at the Brookings Institution.

China's involvement in brokering the Iran-Saudi deal could have significant implications for Washington, said Daniel Russel, the top US diplomat for East Asia under former President Barack Obama.

"The question is, whether this is the shape of things to come?" he said. "Could it be a precursor to a Chinese mediation effort between Russia and Ukraine when Xi visits Moscow?"

The declining US-led world order has been so damaging that China now feels the time has come to step in and try to reverse the vast level of global instability the Pentagon has caused and no region is more insecure at the moment than West Asia.

It is perhaps fair to say that the days of the US wielding its sinister influence in West Asia are slowly but surely coming to an end. 

 

US shale production to rise to highest in April

US shale crude oil production in the seven biggest shale basins is expected to rise in April to its highest since December 2019, the Energy Information Administration said on Monday.

Shale production is expected to rise by 68,000 barrels per day - the slimmest rise since December 2022 - to 9.21 million bpd, the EIA data showed.

Crude output in the Permian basin in Texas and New Mexico, the biggest US shale oil basin, is expected to rise to 5.62 million bpd. Though that would be a record high, oil output from the region is expected to gain by 26,000 bpd from the previous month, also the smallest increase since last December, the data showed.

In the Bakken region of North Dakota and Montana, output is due to rise 18,000 bpd to 1.16 million bpd, the highest since March 2022.

Crude oil production in the South Texas Eagle Ford region is due to gain by 9,000 bpd to 1.13 million bpd, highest since April 2020.

Total natural gas output in the big shale basins will increase by about 0.4 billion cubic feet per day (bcfd) to a record 96.6 bcfd in April, EIA projected.

In the biggest shale gas basin, Appalachia in Pennsylvania, Ohio and West Virginia, output will rise to 35.0 bcfd in April, the highest since November 2022.

That compares with a monthly gas output record in Appalachia of 36.0 bcfd in December 2021.

Gas output in the Permian and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 22.5 bcfd and 16.8 bcfd in April, respectively.

Gas output in Appalachia was expected to increase even though drillers there have been getting less gas out of each new well for 25 months in a row.

EIA said it expected new Appalachia gas well production per rig to drop to 24.2 million cubic feet per day (mmcfd) in April, the lowest since June 2020.

New gas well production per rig in Appalachia hit a record of 33.3 mmcfd in March 2021.

 

Where was the US when Iran and Saudi Arabia restored ties?

The news over the weekend that Iran and Saudi Arabia agreed to reestablish relations took many policymakers by surprise and is seen by some as potentially casting a shadow over the possibility of Israel and Saudi Arabia progressing in their relations.

It came just days after the Wall Street Journal reported that peace between Saudi Arabia and Israel is contingent on assistance from Washington in developing the Saudi civilian nuclear program and the provision of security guarantees.

A senior official traveling with Prime Minister Benjamin Netanyahu’s entourage to Italy naturally put the blame on his predecessors, as well as on the Biden administration.

“There was a feeling of American and Israeli weakness, so Saudi Arabia turned to other channels,” said the senior Israeli official, who briefed reporters in Italy.

Other observers said the rapprochement between the long-strained countries was in part due to Israel’s increasingly right-wing turn and political chaos unfolding due to the judicial reforms.

The move certainly must have been a surprise for Netanyahu, who has often portrayed Israel’s strength as a ticket to more relations in the region.

While all the critics of the Iran-Saudi deal may be correct, it would be wise to urge caution in how Israel moves forward. It would be good for the government to welcome the deal cautiously but to also draw the necessary conclusions.

First and foremost, the fact that China mediated a deal between two Middle Eastern powers says something about the US.

China is a rival to America and the countries have been vying for influence over the region for decades.

China’s ability to enter into the Iranian-Saudi standoff is a result of the vacuum created by the lack of US engagement in the region.

It is no secret that the Biden administration – and the Obama administration before it – viewed their role as moving away from the Middle East.

Obama did this by setting redlines in Syria that were never enforced, allowing Russia to enter the country. The Biden administration has done the same by signaling to the Saudis and Emiratis that they are on their own when it comes to fighting the Houthis in Yemen.

China has outshone the US in the Middle East and that will have repercussions on Israel, whose alliance with America directly affects its own standing in the region.

It has been long argued, when the US is strong and perceived as engaged in the region, this empowers Israel and vice versa.

On the other hand, Israel will need to wait and see if the normalization of ties between Iran and Saudi Arabia means that Riyadh will have more influence and connections when it comes to reining in Iran.

When Iran is more aggressive, whether in weapons trafficking to Lebanon or Yemen, or destabilizing Iraq and Syria, then Israel and Saudi Arabia are both threatened. Saudi Arabia cares deeply about Yemen and Lebanon, and also Iraq and Syria; and this means that Iran’s actions will be in the spotlight after the agreement.

We should welcome diplomacy as a pathway toward peace and stability in the region. At the same time, we should make it clear that the redlines relating to nuclear weapons production remain the same as in the past.

Riyadh does not want Iran to have a nuclear weapons program. It is likely true that China also does not want an Iranian bomb, even if Beijing has chosen to remain silent on this issue, or appear to support Iran against US sanctions in the past.

Israel’s other interest is to maintain its track of emerging and potential ties with Saudi Arabia. As we have seen with reconciliation with Turkey – which has warm relations with Tehran – relationships can evolve on separate tracks.

Courtesy: The Jerusalem Post

 

Saudi-Iranian agreement underscores the desire to resolve disputes

Minister of Foreign Affairs Prince Faisal bin Farhan said that Saudi Arabia’s agreement with Iran to restore diplomatic ties does not mean that both countries have reached a solution to all disputes between them. He emphasized that the Saudi-Iranian agreement to restore diplomatic relations underscores the joint desire by both sides to resolve disputes through communication and dialogue.

Prince Faisal said this in an interview with Asharq Al-Awsat newspaper following the recent decision of Saudi Arabia and Iran to restore diplomatic ties that were severed in 2016. Riyadh and Tehran also agreed to reopen their embassies within two months.

In his first interview since the China-sponsored agreement was reached, Prince Faisal said he was looking forward to meeting his Iranian counterpart soon to build on the deal. “We are preparing to restore our diplomatic ties within two months, so it is normal for us to exchange visits in the future,” he said.

Prince Faisal noted that diplomatic ties are at the core of relations between countries. “This is doubly significant for two neighboring countries of the size of Saudi Arabia and Iran. They share several religious, historic, and cultural ties, and so the agreement was reached through China’s sponsorship and mediation, and that was after several rounds of talks over the past two years in Iraq and Oman.”

Prince Faisal reaffirmed that Saudi Arabia is forging ahead in the path of de-escalation it has chosen because of its sense of responsibility in bolstering regional and international security and stability. “We, in the Kingdom, hope to open a new chapter with Iran and bolster cooperation that would consolidate security and stability and push forward development and prosperity, not just in both our countries, but the entire region,” he said.

Referring to Iran’s commitment to non-interference in the affairs of other countries, Prince Faisal explained that one of the most important demands for opening a new chapter in ties with Iran is committing to the agreement signed between the two countries.

“There is no doubt that both our countries and the region have an interest in activating joint cooperation and coordination and focusing on development instead of hegemony. Such an approach will achieve the aspirations and hopes of our peoples and generations to come for a better future that is secure, stable, and prosperous,” he said while hoping that “the Iranians share our hope and goals and we look forward to working with them to achieve them.”

The foreign minister emphasized that as a neighboring country, Iran’s stability and development will benefit the interest and development of the region and Saudi Arabia wishes it well. Prince Faisal said that Iran’s continued development of its nuclear capabilities is a cause for alarm.

“We have repeatedly called for the Gulf region and the Middle East to be free of weapons of mass destruction. We call on Iran to commit to its nuclear pledges and intensify its cooperation with the International Atomic Energy Agency, and we will continue to work with allies and friends to ensure that,” he said.

Prince Faisal said that China’s sponsorship of the agreement would bolster coexistence and security in the region, and good neighborliness between countries.

“The three countries have a joint interest in preparing a regional environment that is marked by peace, security and stability so that they can work on building and developing regional and international partnerships that achieve economic development and prosperity for the people.”

The minister noted that Saudi Arabia welcomed the initiative proposed by Chinese President Xi Jinping. “The initiative worked with it as an extension of the negotiations that it has been holding with the Iranians for two years. It is no secret that China enjoys positive relations with Saudi Arabia and Iran that has helped achieve rapprochement and highlight the Kingdom’s legitimate concerns,” he said.

On his latest visit to Kyiv and Moscow and talks about a Saudi mediation to stop the Ukraine-Russia war, Prince Faisal stressed that the Kingdom was prepared to exert efforts and work with the two countries to reach a political solution that ends the crisis and fighting and saves lives.

“We were and are still ready to exert efforts and to work with both countries to reach a political solution that would end the crisis and fighting and save lives.”

Prince Faisal noted that the efforts of Crown Prince and Prime Minister Mohammed bin Salman led to a prisoner exchange between the two sides.

“The Kingdom has been focusing on meeting the immediate humanitarian needs that emerged from the war, and our humanitarian response in Ukraine is evidence of this drive. The situation requires both parties, as well as the international community, to stop the dangerous escalation that has harmed the two countries and Europe’s security and weakened international cooperation,” he added.

 

Iran: One agreement seven achievements

The agreement between the Islamic Republic of Iran and Saudi Arabia to resume bilateral relations after seven years is tangible and analyzable from various aspects. Except for the Israeli regime and to some extent the United States, the reactions have been positive, and regional and international actors have welcomed this agreement.

This agreement is considered a victory for the Islamic Republic from various perspectives. Of course, one should be cautious about the depth and scope of this victory and wait to see how the details of the agreement will play out in practice, but so far, some of its achievements for Tehran can be listed. 

The first achievement for Iran shows Tehran is willing to engage in dialogue. And tensions, no matter how extensive and complicated they may be, can be managed if both sides show flexibility and rationality. This demonstrates that contrary to Western propaganda and claims, the deadlock between America and Europe with Iran has not been due to Tehran's obstinacy, but rather these Western countries lack interest or readiness to resolve issues and differences due to various reasons.

The second achievement goes back to America's efforts to isolate Iran. The agreement with Saudi Arabia, which was achieved through the mediation of various countries led by China, is the latest evidence of the failure of this effort. Iran's dynamic diplomacy from East Asia to Latin America indicates that most countries prefer their national interests over US dictates when interacting with Iran.

The third point relates to the strategic alliance of Islamic countries. Although, one should not be delusional about the agreement between Iran and Saudi Arabia, it cannot be denied that these two countries are important and influential in the Islamic world. The closer Tehran and Riyadh get to each other, the less successful will be those who seek to create divisions among Muslims. one must not forget that uniting sects and Islamic countries has always been a permanent strategy for Iran.

The fourth achievement concerns the situation of the Zionist regime and its relation to the aforementioned agreement. Israelis, especially in the past decade, have intensified their efforts to demonize Iran and form alliances against Tehran in the region. The "Abraham Accords" is at the peak of these efforts. They seek to change friends and foes in Muslim countries. The agreement between Iran and Saudi Arabia is an undeniable blow to this Zionist effort.

The fifth achievement is related to Iran-US relations. America is trying to deceive Iranian society into believing that there is no way out other than a bigger JCPOA, i.e. surrendering to the White House’s extortion or that Iran has no choice but to kiss the wolf's paw to solve its problems. The agreement with Saudi Arabia, which was struck in Beijing outside US equations, shows that it is possible to reach an agreement without the involvement of a self-proclaimed master. This was in contrast to the previous government's mistaken belief that if it reach an agreement with the US, relations with others, including regional countries, would also improve. However, in practice, the opposite happened. 

The Iran-Saudi Arabia agreement signed in China can be considered as Beijing's first political-security entry into the complex relations in West Asia. This successful entry is a sign of transition and departure from the current global order. In the new global order, the US, unlike the past, will not have hegemony and will lose its leverage. It can no longer bully others through petrodollars. The marginalization of the US role in the region and its exclusion from negotiations and equations is a significant sixth achievement.

And finally, the seventh achievement, those who were dreaming of an easy regime change through media hype in autumn and enjoying the open and hidden support of the Saudi kingdom. Riyadh's sudden agreement with Tehran came down like an avalanche on this complacent and treacherous group and once again showed that mercenaries also have an expiration date for their masters.