International Political Economy of Iran-Saudi Arabia Oil Relations in the Light of China-United States Competition Based on Game Theory

Document Type : Research

Authors

1 Associate Professor, Department of Economics, Faculty of Humanities, Ayatollah Borujerdi University, Borujerd, Iran.

2 Assistant Professor, Department of Mathematics, Faculty of Basic Science, Ayatollah Borujerdi University, Borujerd, Iran.

3 Corresponding Author, Associate Professor, Department of Political Sciences, Faculty of Humanities, Ayatollah Borujerdi University, Borujerd, Iran

10.22126/ipes.2026.12087.1744

Abstract

Governments act to achieve their national interests, considering national goals and geopolitical and geoeconomic requirements. This action occurs in a dynamic environment because the decisions and actions of other actors can affect the government's behavior, and this dynamic activism guides the government towards an optimal point. This type of activism can also be observed in the oil relations between Iran and Saudi Arabia. The oil relations between Iran and Saudi Arabia occur in an environment influenced by two important trans regional actors, the United States and China. The present study analyzes the actions and reactions to the oil relations between Iran and Saudi Arabia using a game theory approach. The findings show that, in both the static and dynamic states, continued enrichment could be part of Iran's dominant strategy. If Iran, within the framework of an agreement or by enhancing its level of national power and deterrence, can maintain its enrichment capacity and also enhance its level of activism in the region and the international system, as well as create a balance in its foreign policy, it can place the United States and Western governments in a position where they are forced to lift or seriously ease sanctions against Iran, the optimal situation will be achieved for Iran. In this case, by maintaining high oil sales to China, Iran can gain maximum game-theoretic points in its oil relations with Saudi Arabia.

Keywords

References

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International Political Economy Studies
Volume 9, Issue 2
September 2026
Pages 47-64

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History

  • Receive Date: 30 April 2025
  • Revise Date: 07 April 2026
  • Accept Date: 25 April 2026

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