Egypt says Saudis shut fuel supply over Assad support

Egypt says Saudi Arabia has halted fuel shipments indefinitely, in a sign of lingering tensions following a dispute over the conflict in Syria.

The move ratchets up pressure on Egypt as it implements austerity measures in the hope of securing billions of dollars in loans to stabilize its ailing economy. Cairo floated its currency last week and cut fuel subsidies, leading to across-the-board price hikes in the Arab world’s most populous country.

Egyptian Oil Ministry spokesman Hamdi Abdel-Aziz says that Saudi Arabia’s Aramco, the world’s largest oil company, stopped sending the fuel shipments to Egypt “without giving a specific timetable or reasons.”

Saudi Arabia agreed in April to provide Egypt with 700,000 tons of fuel monthly for five years on easy repayment terms, but Egypt said last month that October’s shipments had been halted. The Saudi government has not spoken about the matter, and Aramco did not immediately respond to a request for comment.

The move appears to have been taken in response to Egypt’s support of a UN Security Council resolution on Syria that was fiercely opposed by Riyadh. Saudi Arabia is a leading supporter of the rebels fighting to topple President Bashar Assad. Egypt, fearing the rise of Islamic militants, has pushed for a political solution that might keep him in power.

— AP