The US Congress is about to pass a bill that enables suing of Saudi Arabia government over the September 11 terrorist attack. In retaliation, the rich-oil country warns of disposing US assets that is worth of up to $750 billion.
Saudi Foreign Minister Adel al-Jubeir pertains to the Justice Against Sponsors of Terrorism Act, (JASTA) letting victims of 9/11 and other terrorist acts file lawsuit with foreign sponsors of terrorism. He conveyed the message during his trip to Washington last month.
Saudi Arabia debated that it is exempted from accountability over 9/11 under a 1976 law making it hard to sue foreign countries in US courts. But the JASTA legislation would enable terrorists' victims on US land to bring action in court foreign sponsors of terrorism, according to Business Insider.
"Saudi Arabia would be forced to sell up to $750 billion in Treasury securities and other assets in the United States before they could be in danger of being frozen by American courts."
The New York Times cited administration officials and congressional aides stating that, "the Saudi threats have been the subject of intense discussions in recent weeks between lawmakers and officials from the State Department and the Pentagon."
In addition, the Obama administration had influenced Congress to obstruct the passage of the bill. The State Department mentioned that it stood "firmly with the victims of these acts of violence and their loved ones," based on the Daily News and Analysis report.
The suggested legislation will prompt American courts to put a freeze on US assets possessed by Saudis inciting the potential major sell-off before passing of the bill.
The Obama administration has been demanded by Republican lawmakers to relinquish a 28-page report that accusingly shows Saudi Arabia directly supported and financed the 9/11 attacks of 2011 in New York. The blacked-out pages were kept secret under the George W Bush's instructions resulting to ideas confirming Saudi's involvement, as reported by The Nation.
Saudi Arabia's threat as seen by independent economist, is easier said than done as the move will make the global market unstable and the Saudis will be the one to blame. It would also destabilize the US dollar where the kingdom's currency is linked.
President Obama will pay King Salman of Saudi Arabia a visit as well as the Saudi royal court in Riyadh on Wednesday in a bid to repair accelerating straining ties between the allies.
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