Saudi Arabia

Saudi Arabia is reportedly planning to stop all flights to and from Iran and banning its citizens from travelling there. The Saudi foreign minister Adel al-Jubeir told Reuters that all commercial ties between the countries would also be cut. The move follows attacks on the Saudi embassy in Iran by protesters angry at the execution of Shia cleric Sheikh Nimr al Nimr. Sunni-led Saudi Arabia claims that the execution was part of a war on terrorism.

It all started off relatively well: oil and US equity futures were buoyant on hopes Iran and Saudi Arabia would break out in a bloody conflict any minute boosting the net worth of shareholders of the military industrial complex, and then, out of nowhere, like a depressed China in a bull shop, the "mainland" crashed the party following a terrible manufacturing PMI report, which sent Chinese stocks sliding slowly at first, then very fast.

A senior religious leader in Iran has threatened to execute Saudi Arabia’s royal family in response to the killing of Shia cleric Nimr al-Nimr on Saturday.  Senior Ayatollah Ahmed Khatami promised to exact revenge on the Saudi royal family on Iranian television on Saturday, stating: “I see no reason to doubt that his pure blood is going to color the Saudi royal house and obliterate them from the history books.” Speisa.com reports: “The execution of Sheikh Nimr is part of a criminal pattern that this faithless family stands for.

Saudi Arabia has said it is breaking off diplomatic ties with Iran, amid an escalating row between the two country’s over the Saudi execution of Shia cleric Sheikh Nimr al-Nimr. Reuters news agency reported that the Saudi Foreign minister has asked Iran’s diplomatic mission to leave the country within 48 hours. While according to ccording to Dubai-based al-Arabiya TV, Saudi Arabia has evacuated its diplomats from Tehran. Iran’s Supreme leader Ayatollah Khamenei called Sheikh Nimr a “martyr” who had acted peacefully.

"The unjustly spilled blood of this oppressed martyr will no doubt soon show its effect and divine vengeance will befall Saudi politicians.”

That rather ominous quote is from Ayatollah Khamenei who was decidedly upset with Saudi Arabia’s execution of prominent Shiite cleric Nimr al-Nimr.