http://www.washingtoninstitute.org/policy-analysis/view/saudi-arabia-rethinks-its-commitments-to-lebanon

Saudi Arabia Rethinks Its Commitments to Lebanon

David Schenker

February 25, 2016

Riyadh's latest financial and diplomatic measures may just be a shot across Beirut's bow, but several signs point to a potentially wider Gulf withdrawal that could leave Lebanon even more at Iran and Hezbollah's mercy.

Earlier this week, Saudi Arabia announced it was withdrawing its deposits from the Central Bank of Lebanon. The withdrawal was the latest in a series of recent Saudi actions against Lebanon, including an official advisory against travel there and the cancellation of a $3 billion grant to the Lebanese Armed Forces (LAF) and $1 billion to the Internal Security Forces. Ostensibly, these measures were precipitated by Lebanon's abstention last month from a nearly unanimous Arab League resolution condemning Iran for not preventing the January 3 sacking of the Saudi embassy in Tehran and consulate in Mashhad. The non-vote was cast by Lebanese foreign minister Gibran Basil of the Free Patriotic Movement, a coalition partner of the Iranian-backed Shiite militia Hezbollah.
Riyadh's moves also coincided with the passage of the "Hizballah International Financing Prevention Act of 2015," a new U.S. law that many in Lebanon are concerned will undermine the state's robust financial services industry. Taken together, the Saudi and U.S. measures threaten a perfect storm that could shake the foundations of Lebanon's already tenuous economy. http://www.washingtoninstitute.org/policy-analysis/view/saudi-arabia-rethinks-its-commitments-to-lebanon