A price war between Saudi Arabia and Iran could put an end to OPEC. The internal fractures of OPEC are deepening and likely to deepen further as Saudi Arabia and Iran are highly unlikely to put down their arms, even if it means cutting prices to uncomfortably low levels.
Saudi Arabia could boost its production, it has the biggest portion of OPEC’s combined spare capacity.
Iran’s arch-rival in the Middle East, Saudi Arabia, has been a passionate supporter of President Trump’s intention to pull out of the nuclear deal with Iran and reimpose sanctions.
Saudi Arabia, on the other hand, assuring Iran that its market share won’t suffer any consequences from its stated pledge to fill any supply gap left by a cut in Iranian exports resulting from the US sanctions.
Iran has made clear that it will not stop exporting oil and China has made clear it will not stop buying it.