The Impact of Oil on U.S. Foreign Policy in The Middle East

Authors

  • Ismail Adaramola Abdul Azeez Passion International University, Colorado
  • Muhammad Talal Bhatti Riphah Institute of Public Policy, Riphah International University
  • Muhammad Habib International Islamic University Islamabad
  • Suhad Ismail Adaramola Abdul Azeez Passion International University, Colorado
  • Ousmane A. Sackor Passion International University, Colorado
  • Samar Uddin Sahito Riphah Institute of Public Policy, Riphah International University

DOI:

https://doi.org/10.59890/ijefbs.v4i5.47

Keywords:

U.S. Foreign Policy, Middle East, Oil Dependence, Shale Revolution, Energy Security, Sanctions, Global Oil Economy

Abstract

The global oil economy has long shaped international relations, with U.S. strategy particularly influenced by Middle Eastern petroleum resources. This paper investigates a central puzzle: Why does the United States remain deeply involved in the Middle East despite a dramatic decline in direct oil import dependence? We review the historical role of oil in U.S. policy, from the World War II era “oil for security” bargain with Saudi Arabia to the 1973 Arab Oil Embargo and subsequent energy shocks. We compare that legacy with recent trends: the 2000s shale revolution transformed the U.S. from a major oil importer into the world’s largest producer. Our research asks: How has oil historically shaped U.S. engagement in the Middle East? And in what ways has the shale boom altered America’s strategic approach to the region? Using a mixed methods approach, combining historical case studies with contemporary policy analysis, we find that oil remains a necessary but not sufficient motive in current strategy. While oil continues to influence U.S. interests (for example, in deterring supply disruptions), the shale era has enabled policy tools beyond direct military intervention. Today, U.S. policy emphasizes sanctions (notably against Iran’s petroleum sector), alliance building (with Gulf partners and Israel), and burden sharing through diplomatic pressure. The findings suggest that America’s “energy dominance” grants strategic flexibility: with secure supplies at home, the U.S. can focus on global price stability and counterterrorism rather than traditional resource wars. The paper concludes that oil still matters in U.S.-Middle East policy, but the nature of influence has shifted. Going forward, climate change and energy transition pressures will further reshape this relationship.

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Published

2026-10-29

How to Cite

Azeez, I. A. A., Bhatti, M. T., Habib, M., Azeez, S. I. A. A., Sackor, O. A., & Sahito, S. U. (2026). The Impact of Oil on U.S. Foreign Policy in The Middle East. International Journal of Economic, Finance and Business Statistics, 4(5), 767–782. https://doi.org/10.59890/ijefbs.v4i5.47