Saudi Arabia Distrusts Iran Nuclear Deal: Croft

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Nov. 25 (Bloomberg) -- Helima Croft, senior geopolitical strategist at Barclays and Bloomberg Contributing Editor Richard Falkenrath discuss why the Middle East does not trust Iran and how the nuclear deal impacts relations between the United States and Iran. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

It is ancient, it is about persia.

We have our stereotypes of the shaw in the modern day, why do they not trust persia?

Saudi arabia looks at iran and sees a big regional rival.

It is a battle for power and ideology in the middle east.

What's so concerned saudi arabia is in iran as a filed, the low en route -- the low grade enriched uranium.

They're concerned that the u.s. may withdraw from the middle east and leave iran was so much capability and they're terrified of that prospect.

Richard falkenrath, was is an agreement by a war weary american?

Absolutely.

We saw very clearly wisteria that president obama is not interested in new military conflict and has said he might like to shift to asia.

It is not clear he can do that.

The military option here was never a good one and it was on the table in a formal sense, but as a practical matter this president was not going to launch an unprovoked attack against iran.

You look at the map of tehran in iran, who are those missiles pointed at?

Ali the pointed at the united arab emirates?

In terms of iran, i think iran talks about the military capabilities from a self-defense mode.

We talk to iranian officials, to talk about the fact that are in iran-iraq war, chemical weapons were used against the iranians.

There were international probes, saddam used them with the blessing of saudi arabia and its allies.

They say they live in a hostile neighborhood.

That said, what is the response from the rest of the middle east at this point?

If in fact nuclear program is left intact?

You have to watch saudi arabia.

They have been making a lot of statements about how unhappy they are with the united states.

The ultimate threat that saudi arabia has and we don't know if it is bluster at this point, you leave them with his nuclear option and we will pursue our own weapons program.

That is the ultimate threat.

Does is to give a false sense of hea security to the u.s. and its allies?

I don't think so.

I don't think there will be a lessening of the guard.

It is not like were going to go on a higher military alert level in the gulf.

The new president in iran will have a chance to demonstrate how he is different from his predecessors.

Richard haas says that a better accord is a ceiling rather than a freeze.

This is a ceiling on what?

On the level of enrichment that iran is carrying out for its nuclear program.

Uranium is natural form is only 0.7 you 235, which is what you need to make weapons.

Natural uranium is only zero point seven u235. those centrifuges is what enriches uranium.

You need 90% to make a bomb.

Three percent is sufficient to fuel a reactor.

We have in the agreement as a cap, a ceiling on the level of enrichment that iran is allowed to use.

This includes -- time, the amount of time it takes iran to order the materials and to make one.

The amount of time is not nothing but his not hugely significant area present rouhani's newly elected and a lot of people say he is not the real leader and the real power is the ayatollah how ma comment.

There are potential spoilers in iran.

There are hardliners in the government and that is why the iranians keep saying we got ricky-ish in the right to enrich uranium.

They keep saying the west came over to their site significantly.

They're going to sell the deal is a little bit of a cave on the part of the west to sell it at home.

Let us come back.

There's a lot out on bloomberg.com.

And dear a lot of moneywe look at futures advance.

Really reaching out toward 1800.

This text has been automatically generated. It may not be 100% accurate.

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