Just yesterday, Saudi Arabia’s government says it intercepted a missile fired from Yemen on it's way to pay a visit to the international airport located in the Saudi capital city Riyadh. Sounds pretty bad, especially since the Saudis, and anyone else who follows this conflict, know it was a care package furnished by the Iranians.
While the markets shrugged the news off, another storm was brewing from within the Kingdom itself.
Over the weekend, 32-year-old Crown Prince Mohammed bin Salman set in motion a purge of fellow princes. Corruption is endemic on the Arabian peninsula so you're going to find dirt no matter who you point the finger at. Get a few mullahs to go along with the plan of a “corruption investigation”, and you end up with eleven princes, four Cabinet ministers, and dozens of other royal family members under arrest. The sweep also captured billionaire Prince Alwaleed bin Talal (who once sued Forbes for lowballing its estimate of his net worth on the Forbes 400).
Some will argue it's too soon to fully understand the ramifications of these events. Not me. The long knives are out and there's no putting them anywhere but in someone's back.
Go long crude, it's only logical.