Energy Politics: US Influence in Middle East

 The U.S. in the Middle East: From Petrodollars to Power Shifts

Oil pumping machinery extracting oil at Aramco in Saudia Arabia piture by local saudi news

Since the early 20th century, the United States has played a central role in shaping the politics of the Middle East. From energy interests to geopolitical rivalries, the region has been a canvas for American foreign policy, economic deals, and military actions.

The Rise of the Petrodollar

In the wake of the 1971 collapse of the Bretton Woods system, the U.S. forged a strategic deal with Saudi Arabia: in exchange for military protection and access to global markets, Saudi oil would be traded exclusively in U.S. dollars. This petrodollar agreement stabilized the dollar and deepened U.S. influence in the region. It also marked the beginning of a long-standing relationship between Washington and Riyadh.

 Picture shows the US dollar and how it is relatd with oil

Camp David and the Missing Piece 

Fast forward to 1978 — the Camp David Accords brokered by President Jimmy Carter were hailed as a diplomatic success. Egypt and Israel signed the first peace treaty  between Israel and an Arab country. However, the deal left one major issue unresolved: Palestine. The Palestinian people were excluded from the negotiations, planting seeds for future conflict.

Camp David Accords signed by Sadat, Carter, and Begin in 1978.

The Post-9/11 Era: War and Instability

Word Trade Centre being hit by second Plane in US

After 9/11, the U.S. doubled down on its military presence in the Middle East under the Global War on Terror. The 2003 invasion of Iraq, justified by unfounded claims of weapons of mass destruction and links to Al-Qaeda, became a turning point. The power vacuum that followed led to the rise of extremist groups like ISIS, plunging the region into years of violence and instability.

Energy Independence and Changing Tides

In the 2010s, the U.S. energy landscape shifted. With a boom in shale oil and a global push toward renewables, Washington’s dependence on Middle Eastern oil began to wane. Military interventions gave way to diplomacy and financial aid, though the U.S. remained firmly committed to its key ally, Israel.

New Players on the Block: China and Iran

The U.S.’s gradual withdrawal has created a power vacuum, one that Iran has eagerly filled across Syria, Iraq, and Lebanon. Meanwhile, China has stepped in diplomatically, most notably by brokering a rapprochement between Iran and Saudi Arabia — a move that signals a potential reshaping of regional alliances.

Different leaders of the world gathered at Brics Anual meeting at UAE

Washington’s Balancing Act

Today, U.S. foreign policy in the Middle East walks a tightrope. While distancing itself from ground wars, the U.S. continues to back Israel — a stance that has drawn criticism, particularly amid rising tensions with Palestinians. President Biden’s support for Israel, without stronger advocacy for a ceasefire or peace plan, has fueled accusations of bias and weakened America’s image as a neutral peace broker.

what is next in the middle east?

The Middle East is changing, and so is America's role in it. Whether through diplomacy, economic influence, or strategic alliances, the U.S. will likely remain a key player. But with China’s rising presence, regional powers seeking autonomy, and global energy trends evolving, Washington must adapt or risk losing its footing in one of the world’s most volatile — and vital — regions.