Ahmed Zaki Yamani
Encyclopedia
Ahmed Zaki Yamani is a Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...

n politician who was Minister of Oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....

 (Petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...

) and Mineral Resources from 1962 until 1986 for his country, and a minister in OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...

 for 25 years.

With degrees from, among other places, New York University School of Law
New York University School of Law
The New York University School of Law is the law school of New York University. Established in 1835, the school offers the J.D., LL.M., and J.S.D. degrees in law, and is located in Greenwich Village, in the New York City borough of Manhattan....

 and Harvard Law School
Harvard Law School
Harvard Law School is one of the professional graduate schools of Harvard University. Located in Cambridge, Massachusetts, it is the oldest continually-operating law school in the United States and is home to the largest academic law library in the world. The school is routinely ranked by the U.S...

 whilst also having a doctorate from the University of Exeter
University of Exeter
The University of Exeter is a public university in South West England. It belongs to the 1994 Group, an association of 19 of the United Kingdom's smaller research-intensive universities....

, Yamani became a close adviser to the Saudi government in 1958 and then became oil minister in 1962. He is best known for his role during the 1973 oil embargo
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...

, when he spurred OPEC to quadruple the price of crude oil. During that time, Yamani gained a colourful international reputation, known in the West for both diplomatic skills and characteristic goatee.

In December 1975, Yamani and several other OPEC ministers were taken hostage by notorious terrorist Carlos (the Jackal) in Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...

, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

. He was later released after Carlos spent two days riding an airplane across the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

 even though Carlos was ordered by his superiors to execute Yamani.

In October 1986, King Fahd
Fahd of Saudi Arabia
Fahd bin Abdul Aziz Al Saud, Custodian of the Two Holy Mosques, was King of Saudi Arabia from 1982 to 2005...

 dismissed Yamani. He also dismissed Dr. Abdulhady Hassan Taher, who was the founder of Petromin oils (now Aramco) and had a major role in the Saudi oil history. The reasons for this include the Saudi government's insistence on setting their own oil policy. Another reason could have been their power, since they were both running the Saudi petroleum industry. In 1990, Yamani founded the Centre for Global Energy Studies, a market analysis group.

Early life

Ahmed Zaki Yamani was born in Mecca
Mecca
Mecca is a city in the Hijaz and the capital of Makkah province in Saudi Arabia. The city is located inland from Jeddah in a narrow valley at a height of above sea level...

 in 1930, one of three children. His father, Hassan Yamani, was a Qadi
Qadi
Qadi is a judge ruling in accordance with Islamic religious law appointed by the ruler of a Muslim country. Because Islam makes no distinction between religious and secular domains, qadis traditionally have jurisdiction over all legal matters involving Muslims...

 in the Hejaz
Hejaz
al-Hejaz, also Hijaz is a region in the west of present-day Saudi Arabia. Defined primarily by its western border on the Red Sea, it extends from Haql on the Gulf of Aqaba to Jizan. Its main city is Jeddah, but it is probably better known for the Islamic holy cities of Mecca and Medina...

 and a respected scholar of Islamic law, acting as Grand Mufti
Grand Mufti
The title of Grand Mufti refers to the highest official of religious law in a Sunni or Ibadi Muslim country. The Grand Mufti issues legal opinions and edicts, fatwā, on interpretations of Islamic law for private clients or to assist judges in deciding cases...

 in Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

 and Malaysia. Yamani's grandfather was Grand Mufti
Grand Mufti
The title of Grand Mufti refers to the highest official of religious law in a Sunni or Ibadi Muslim country. The Grand Mufti issues legal opinions and edicts, fatwā, on interpretations of Islamic law for private clients or to assist judges in deciding cases...

 in Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

. The Yamani surname originates from Yemen
Yemen
The Republic of Yemen , commonly known as Yemen , is a country located in the Middle East, occupying the southwestern to southern end of the Arabian Peninsula. It is bordered by Saudi Arabia to the north, the Red Sea to the west, and Oman to the east....

 where his paternal grandfathers came from.

At 17 the young Yamani went to Cairo University
Cairo University
Cairo University is a public university located in Giza, Egypt.The university was founded on December 21, 1908, as the result of an effort to establish a national center for educational thought...

 and earned a bachelor's degree in law (License en Droit) in 1951.

Inspired by his father and grandfather, Yamani planned to become a teacher but, on leaving University, took a job at the Ministry of Finance in Mecca, teaching Islamic law in his own time. Soon after, the Saudi government sent Yamani to New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...

's Comparative Law Institute for non-American lawyers at NYU Law School and in 1955 he received a master's degree in Comparative Jurisprudence
Jurisprudence
Jurisprudence is the theory and philosophy of law. Scholars of jurisprudence, or legal theorists , hope to obtain a deeper understanding of the nature of law, of legal reasoning, legal systems and of legal institutions...

. Whilst at NYU, Yamani met his first wife, Laila, from Mosul, Iraq, and they married in the Brooklyn home of a Moroccan.

With the help of an NYU professor, Yamani spent the next year at Harvard Law School
Harvard Law School
Harvard Law School is one of the professional graduate schools of Harvard University. Located in Cambridge, Massachusetts, it is the oldest continually-operating law school in the United States and is home to the largest academic law library in the world. The school is routinely ranked by the U.S...

 earning his second Master's in 1956 and then returned to the Ministry of Finance, joining the new Department of Zakat
Zakat
Zakāt , one of the Five Pillars of Islam, is the giving of a fixed portion of one's wealth to charity, generally to the poor and needy.-History:Zakat, a practice initiated by Muhammed himself, has played an important role throughout Islamic history...

 and Income Tax. The same year Yamani founded his own law firm sharing his name. Through the practice, perhaps the first organised firm in the country, Yamani undertook government work, strengthening ties with the petroleum office.

In 1956, Yamani's first daughter, Mai Yamani
Mai Yamani
-Biography:Dr. Mai Yamani was born in Cairo, Egypt in 1956 to an Iraqi mother from Mosul and a Saudi Arabian father from Mecca. Her father is Sheikh Ahmed Zaki Yamani who gained international fame as Saudi Arabia's Minister of Petroleum Affairs. Her paternal grandfathers came from Yemen, hence the...

, was born, followed by second daughter Maha in 1959 and first son Hani in 1961. Mai Yamani later studied anthropology
Anthropology
Anthropology is the study of humanity. It has origins in the humanities, the natural sciences, and the social sciences. The term "anthropology" is from the Greek anthrōpos , "man", understood to mean mankind or humanity, and -logia , "discourse" or "study", and was first used in 1501 by German...

 and is now an author and Research Fellow at the Royal Institute for International Affairs
Chatham House
Chatham House, formally known as The Royal Institute of International Affairs, is a non-profit, non-governmental organization based in London whose mission is to analyse and promote the understanding of major international issues and current affairs. It is regarded as one of the world's leading...

. Maha received a law degree from Cambridge and Hani a degree in business administration.
Yamani married his second wife Tammam al-Anbar on 23 March 1975, and had five children, Faisal, born in 1976, Sharaf in 1977, Sarah in 1979, Arwa in 1981 and Ahmed in 1983.

In office

In late 1957 Yamani was invited by Faisal
Faisal of Saudi Arabia
Faisal bin Abdul-Aziz Al Saud was King of Saudi Arabia from 1964 to 1975. As king, he is credited with rescuing the country's finances and implementing a policy of modernization and reform, while his main foreign policy themes were pan-Islamic Nationalism, anti-Communism, and pro-Palestinian...

, then Crown Prince
Crown Prince
A crown prince or crown princess is the heir or heiress apparent to the throne in a royal or imperial monarchy. The wife of a crown prince is also titled crown princess....

 and Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...

, to work as a legal adviser to his office. However, when King Saud
Saud of Saudi Arabia
Saud bin Abdul-Aziz Al Saud was King of Saudi Arabia from 1953 to 1964. He was removed from power by Faisal because of Saud's mismanagement and waste. He was the eldest surviving son of Ibn Saud and became Crown Prince in 1933. He died in exile in Greece.-Early life:Saud was born in 1902 in Kuwait...

 returned to full power in 1960 with the support of the Free Princes
Free Princes
Free Princes Movement was a Saudi liberal political movement from 1958-64. Its members were known as the Young Najd, Free Princes, and Liberal Princes....

, Faisal resigned as Prime Minister and Yamani returned to his law practice and began teaching at the University of Riyadh
King Saud University
King Saud University is a public university located in Riyadh, Saudi Arabia. It was founded in 1957 by King Saud bin Abdul Aziz as Riyadh University, as the first university in the kingdom not dedicated to religious subjects. The university was created to meet the shortage of skilled workers in...

. According to Yamani, King Saud then offered him the position of Oil Minister but this was declined. Several months later a new cabinet was formed with Faisal as Crown Prince and Deputy Prime Minister and in March 1962 the incumbent Oil Minister and founding father of OPEC, Abdallah Tariki, was replaced by Ahmed Zaki Yamani.

Although clearly distinguished from his fiery predecessor by both his supporters and detractors, Yamani had a common goal with Tariki in moving toward the nationalisation of Aramco, the operating oil company in the country. In 1962 The General Petroleum and Mineral Organization (Petromin) was established, designed to become the national oil company. In 1964 University of Petroleum and Minerals  was established, with the aim of producing Saudis with the skills to manage this company in the future. However, Yamani's plans for increased Saudi control of oil resources were only made public in 1968 during a speech at the American University in Beirut (AUB), where he talked of 'participation' as opposed to nationalisation. Following OPEC negotiations in 1972, the Saudi government bought 25 % owenership of Aramco. From 1974, Saudi participation increased to 60% and in 1976 total Saudi ownership was agreed, with payments completed in 1980.

As Oil Minister of oil rich Saudi Arabia, Yamani took an important role in the development of the newly created OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...

. From early on, Yamani is noted as having a 'moderate' oil policy. Faced with the 1967 Arab-Israeli War
Six-Day War
The Six-Day War , also known as the June War, 1967 Arab-Israeli War, or Third Arab-Israeli War, was fought between June 5 and 10, 1967, by Israel and the neighboring states of Egypt , Jordan, and Syria...

 Yamani spoke against the use of an Arab oil embargo, to the displeasure of Israel's Arab neighbours and Iraq in particular. The action was ineffective, although the experience led to a consideration of the possible political benefits of an Arab-only oil organisation. Yamani took the lead role in the development of this idea and in 1968 the Organisation of Arab Petroleum Exporting Countries was joined by Saudi Arabia, Kuwait and Libya. Several other countries joined in 1970 and Egypt, Syria and militant Iraq joined in the early 1970s.

1973 oil crisis

Following the humiliation of the 1967 Six-Day War
Six-Day War
The Six-Day War , also known as the June War, 1967 Arab-Israeli War, or Third Arab-Israeli War, was fought between June 5 and 10, 1967, by Israel and the neighboring states of Egypt , Jordan, and Syria...

, demands for the use of oil as a political weapon intensified throughout the Arab world, with the primary aim of changing the apparent pro-Israeli policy of the US government. Overwhelming pressure for Saudi Arabia to support such action resulted from the renewal of Arab-Israeli conflict on October 1973 with the Yom Kippur War
Yom Kippur War
The Yom Kippur War, Ramadan War or October War , also known as the 1973 Arab-Israeli War and the Fourth Arab-Israeli War, was fought from October 6 to 25, 1973, between Israel and a coalition of Arab states led by Egypt and Syria...

. Yamani took the initiative and planned to initially drop oil production by ten percent alongside other OPEC members, followed by five percent reductions each month. This proposal was designed to gain the necessary attention from the West while preventing the tremendous damage that could be caused by more radical reductions likely to be advanced by the other OPEC members.

On 16 October the six Persian Gulf member countries met in Kuwait and took the decision to raise oil prices from US$3 to $5.12. This was the first time the producer countries had independently set the price of their oil. The next day the 10 OAPEC members agreed to Shiekh Yamani's moderate production cutback proposals. An embargo to countries seen as 'hostile' was also recommended but not enforced, although by 22 October all OAPEC countries had placed an embargo on the hostile nations of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 and the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

. Those countries considered friendly would not be directly affected by either decision although 'neutral' countries would.

The production cutbacks, increased to twenty five percent in November, severely affected the economic health of all Western powers. To gain political support, Yamani travelled through Europe, the US and Japan with Algerian oil minister Belaid Abdesselam. Both Yamani and OPEC became well known in the West for the first time, Yamani described as 'the man of the moment' in Newsweek
Newsweek
Newsweek is an American weekly news magazine published in New York City. It is distributed throughout the United States and internationally. It is the second-largest news weekly magazine in the U.S., having trailed Time in circulation and advertising revenue for most of its existence...

 International's 24 December 1973 cover article. US attempts at bringing together a consumer's cartel failed and the EEC and Japan called on Israel to withdraw from Arab territories occupied in 1967.

On 22 December the Gulf members of OPEC met again in Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...

 where the Shah
Mohammad Reza Pahlavi
Mohammad Rezā Shāh Pahlavi, Shah of Iran, Shah of Persia , ruled Iran from 16 September 1941 until his overthrow by the Iranian Revolution on 11 February 1979...

, backed by the other militant states, urged that the price of oil be raised to over $20 a barrel. Yamani opposed this extreme increase but could not contact Saudi Arabia from Tehran. Fearing a split in OPEC, Yamani decided on a compromise that put oil at $11.65, four times the price of a barrel prior to October 16.

Following progress with Arab-Israeli disengagement agreements, a decision was taken to end the embargo, which was formally lifted on March 17.

Saudi Arabia continued to push for price reductions from the $11.65 level, opposed by other OPEC members. This increasingly became seen as a pro-American stance by the other producers although defended by Yamani as a safer option for the world economy. Saudi Arabia has also been criticised for using its position to force its own interests, as a lower price enables the country to keep a high market share and discourages research into alternative energy sources, suiting their long-term production capacity.

Death of King Faisal

On 25 March 1975 King Faisal
Faisal of Saudi Arabia
Faisal bin Abdul-Aziz Al Saud was King of Saudi Arabia from 1964 to 1975. As king, he is credited with rescuing the country's finances and implementing a policy of modernization and reform, while his main foreign policy themes were pan-Islamic Nationalism, anti-Communism, and pro-Palestinian...

 was shot dead by Faisal bin Musad
Faisal bin Musad
Prince Faisal bin Musaid bin Abdul-Aziz was the assassin and nephew of King Faisal.-Family:Faisal's father was Prince Musaid. His mother was Watfa, a daughter of Muhammad bin Talal, the 12th Rashidi amir. He was born in Riyadh.In 1966, his brother Khaled allegedly died in a Riyadh protest...

, the King's nephew. The young prince had joined a Kuwaiti delegation, led by oil minister Abdul Mutaleb Kazimi, which Yamani had escorted to the King's office. Yamani stood next to the King when the shots were fired and, after interrogation, it was discovered that Faisal bin Musad also believed Yamani to have been shot dead in the attack.

King Faisal's death led to widespread predictions that Yamani would soon be replaced as oil minister. Faisal and Yamani are known to have had an especially strong relationship, with the King holding Yamani's opinion in high regard, even above other members of the royal family. This, along with his success before the Western media, fostered jealousy, especially amongst the Sudairi Seven
Sudairi Seven
The Sudairi Seven, also spelled Sudairy or Sudayri, is the commonly used name for a powerful alliance of seven full brothers and their descendants within the royal family of Saudi Arabia. They are also known as the Al Fahd . They are sometimes referred to as the Sudairi Clan or the Sudairi faction...

 and Fahd
Fahd of Saudi Arabia
Fahd bin Abdul Aziz Al Saud, Custodian of the Two Holy Mosques, was King of Saudi Arabia from 1982 to 2005...

, to be Crown Prince under Faisal's frail and uninterested successor, King Khaled.

Yamani, however, continued in his role as oil minister for another eleven years after the death of Faisal, possibly buoyed by his prominent international position.

Hostage incident

On 21 December 1975 Zaki Yamani was taken hostage by terrorist Carlos (the Jackal), in Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...

, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

, where he was attending a meeting at the OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...

 headquarters. Carlos planned to take over the conference by force and kidnap all eleven oil ministers in attendance and hold them for ransom, with the exception of Yamani and Iran's Jamshid Amuzegar
Jamshid Amuzegar
Dr. Jamshid Amouzegar is an Iranian economist, artist and politician who was Prime Minister of Iran from 7 August 1977 to 27 August 1978 when he resigned. Prior to that, he was Minister of Interior and Minister of Finance in the cabinet of Amir-Abbas Hoveida...

, who were to be executed.

Carlos led his six-person team past two police officers in the building's lobby and up to the first floor, where a police officer, an Iraqi plain clothes security guard and a young Libyan economist were shot dead.

As Carlos entered the conference room and fired shots in the ceiling, the delegates ducked under the table. The terrorists searched for Yamani and then divided the sixty-three hostages into groups. Delegates of friendly countries were moved toward the door, 'neutrals' were placed in the centre of the room and the 'enemies' were placed along the back wall, next to a stack of explosives. This last group included those from Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...

, Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...

, Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...

 and the UAE
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...

. Carlos demanded a bus to be provided to take his group and the hostages to the airport, where a DC-9
McDonnell Douglas DC-9
The McDonnell Douglas DC-9 is a twin-engine, single-aisle jet airliner. It was first manufactured in 1965 with its maiden flight later that year. The DC-9 was designed for frequent, short flights. The final DC-9 was delivered in October 1982.The DC-9 was followed in subsequent modified forms by...

 airplane and crew would be waiting. In the meantime, Carlos briefed Yamani on his plan to eventually fly to Aden
Aden
Aden is a seaport city in Yemen, located by the eastern approach to the Red Sea , some 170 kilometres east of Bab-el-Mandeb. Its population is approximately 800,000. Aden's ancient, natural harbour lies in the crater of an extinct volcano which now forms a peninsula, joined to the mainland by a...

, where Yamani and the Iranian minister would be killed.

The bus was provided the following morning at 6.40 a.m. as requested and forty-two hostages were boarded and taken to the airport. The group were airborne just after 9.00 a.m., and explosives placed under Yamani's seat. The plane first stopped in Algiers
Algiers
' is the capital and largest city of Algeria. According to the 1998 census, the population of the city proper was 1,519,570 and that of the urban agglomeration was 2,135,630. In 2009, the population was about 3,500,000...

, where Carlos left the plane to meet with the Algierian Foreign minister. All thirty non-Arab hostages were released, excluding Amuzegar.

The refueled plane left for Tripoli
Tripoli
Tripoli is the capital and largest city in Libya. It is also known as Western Tripoli , to distinguish it from Tripoli, Lebanon. It is affectionately called The Mermaid of the Mediterranean , describing its turquoise waters and its whitewashed buildings. Tripoli is a Greek name that means "Three...

 where there was trouble in acquiring another plane as had been planned. Carlos decided to instead return to Algiers and change to a Boeing 707
Boeing 707
The Boeing 707 is a four-engine narrow-body commercial passenger jet airliner developed by Boeing in the early 1950s. Its name is most commonly pronounced as "Seven Oh Seven". The first airline to operate the 707 was Pan American World Airways, inaugurating the type's first commercial flight on...

, a plane large enough to fly to Baghdad
Baghdad
Baghdad is the capital of Iraq, as well as the coterminous Baghdad Governorate. The population of Baghdad in 2011 is approximately 7,216,040...

 non-stop. Ten more hostages were released before leaving.

With only ten hostages remaining, the Boeing 707 left for Algiers and arrived at 3.40 a.m. After leaving the plane to meet with the Algerians, Carlos talked with his colleagues in the front cabin of the plane and then told Yamani and Amouzegar that they would be released at mid-day. Carlos was then called from the plane a second time and returned after two hours.

At this second meeting it is believed that Carlos held a phone conversation with Algerian President Houari Boumédienne who informed Carlos that the oil ministers' deaths would result in an attack on the plane. Yamani's biography suggests that the Algerians had used a covert listening device
Covert listening device
A covert listening device, more commonly known as a bug or a wire, is usually a combination of a miniature radio transmitter with a microphone. The use of bugs, called bugging, is a common technique in surveillance, espionage and in police investigations.A bug does not have to be a device...

 on the front of the aircraft to overhear the earlier conversation between the terrorists, and found that Carlos had in fact still planned to murder the two oil ministers. Boumédienne must also have offered Carlos asylum at this time and possibly financial compensation for failing to complete his assignment.

On returning to the plane Carlos stood before Yamani and Amuzegar
Jamshid Amuzegar
Dr. Jamshid Amouzegar is an Iranian economist, artist and politician who was Prime Minister of Iran from 7 August 1977 to 27 August 1978 when he resigned. Prior to that, he was Minister of Interior and Minister of Finance in the cabinet of Amir-Abbas Hoveida...

 and expressed his regret at not being able to murder them. He then told the hostages that he and his comrades would leave the plane after which they would all be free. After waiting for the terrorists to leave, Yamani and the other nine hostages followed and were taken to the airport by Algerian Foreign Minister Abdelaziz Bouteflika
Abdelaziz Bouteflika
Abdelaziz Bouteflika is the ninth President of Algeria. He has been in office since 1999. He continued emergency rule until 24 February 2011, and presided over the end of the bloody Algerian Civil War in 2002...

. The terrorists were present in the next lounge and Khalid, the Palestinian
Palestinian people
The Palestinian people, also referred to as Palestinians or Palestinian Arabs , are an Arabic-speaking people with origins in Palestine. Despite various wars and exoduses, roughly one third of the world's Palestinian population continues to reside in the area encompassing the West Bank, the Gaza...

, asked to speak to Yamani. As his hand reached for his coat, Khalid was surrounded by guards and a gun was found concealed in a holster.

Some time after the attack it was revealed by Carlos' accomplices that the operation was commanded by Wadi Haddad, a Palestinian terrorist and founder of the Popular Front for the Liberation of Palestine
Popular Front for the Liberation of Palestine
The Popular Front for the Liberation of Palestine is a Palestinian Marxist-Leninist organisation founded in 1967. It has consistently been the second-largest of the groups forming the Palestine Liberation Organization , the largest being Fatah...

. It was also claimed that the idea and funding came from an Arab president, widely thought to be Muammar al-Gaddafi
Muammar al-Gaddafi
Muammar Muhammad Abu Minyar Gaddafi or "September 1942" 20 October 2011), commonly known as Muammar Gaddafi or Colonel Gaddafi, was the official ruler of the Libyan Arab Republic from 1969 to 1977 and then the "Brother Leader" of the Libyan Arab Jamahiriya from 1977 to 2011.He seized power in a...

.

Continuation of Saudi oil policy

At an OPEC meeting in September 1975 in Vienna, Saudi Arabia continued to oppose sharp increases in the price of oil. Yamani was required to gain approval from Crown Prince Fahd for any increase to be agreed in excess of 5%. Unable to contact Saudi Arabia from Vienna, Yamani left the meeting and flew to London on his private jet in order to find a telephone. This incident was widely publicized.

At an OPEC meeting in May 1976 in Bali
Bali
Bali is an Indonesian island located in the westernmost end of the Lesser Sunda Islands, lying between Java to the west and Lombok to the east...

, Iran and seven other members advocated a 20% increase in oil prices to match inflation although Saudi Arabia favoured a six-month price freeze. The Iraqi oil minister fiercely criticised Yamani and Saudi Arabia for pro-Western policy which led to Yamani leaving the meeting and demanding an apology. This was settled and the six-month price freeze was agreed.

Six months later OPEC assembled in Doha
Doha
Doha is the capital city of the state of Qatar. Located on the Persian Gulf, it had a population of 998,651 in 2008, and is also one of the municipalities of Qatar...

 and Saudi Arabia again faced pressure to raise prices. Saudi Arabia and the UAE were the only two member countries not to agree to a 10% increase in January 1977 followed by an additional 5% increase in July. This led to a period of two-tier pricing with Saudi Arabia and the UAE charging $12.09 per barrel and the other OPEC countries $12.70 per barrel. In July 1977 an OPEC meeting in Stockholm
Stockholm
Stockholm is the capital and the largest city of Sweden and constitutes the most populated urban area in Scandinavia. Stockholm is the most populous city in Sweden, with a population of 851,155 in the municipality , 1.37 million in the urban area , and around 2.1 million in the metropolitan area...

 ended two-tier pricing, with prices re-unified at $12.70.

In 1979 the Iranian Revolution
Iranian Revolution
The Iranian Revolution refers to events involving the overthrow of Iran's monarchy under Shah Mohammad Reza Pahlavi and its replacement with an Islamic republic under Ayatollah Ruhollah Khomeini, the leader of the...

 resulted in the 1979 energy crisis
1979 energy crisis
The 1979 oil crisis in the United States occurred in the wake of the Iranian Revolution. Amid massive protests, the Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979 and the Ayatollah Khomeini soon became the new leader of Iran. Protests severely disrupted the Iranian oil...

. Saudi Arabia and other OPEC members managed to greatly increase production to replace that lost from Iran but this did not prevent panic buying of oil. OPEC also maintained an official price although the spot market led to oil prices being negotiated upward. Yamani claimed that Saudi Arabia would not sell over the OPEC price but would remain committed to the reduction of oil prices. He also predicted another energy crisis to occur in the mid-1990s.

Removal from office

The panic buying during the 1979 energy crisis led to increased oil stocks which began to flood the market and resulted in price wars between oil producing nations competing for market share. This in turn led to reduced income for Saudi Arabia. On 13 June 1982, in the course of this downturn, King Khaled died of a heart attack and Crown Prince Fahd became King and Prime Minister, resulting in renewed rumours of Yamani's imminent removal from office.

The beginning of Fahd's rule was marred by the reduced oil income caused by the 1980s oil glut
1980s oil glut
The 1980s oil glut was a serious surplus of crude oil caused by falling demand following the 1970s Energy Crisis. The world price of oil, which had peaked in 1980 at over US$35 per barrel , fell in 1986 from $27 to below $10...

 and ambitious development plans had to be rolled back. The restricted national budget also encouraged the use of oil in barter deals. In 1984 Saudi Arabia purchased ten Boeing 747
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...

s to join the fleet of Saudia Airlines
Saudi Arabian Airlines
Saudi Arabian Airlines is the flag carrier airline of Saudi Arabia, based in Jeddah. It operates domestic and international scheduled flights to over 90 destinations in the Middle East, Africa, Asia, Europe and North America...

 using 34.5 Moilbbl of oil. Yamani is known to have strongly objected to this subordination of the country's OPEC quota and warned Fahd of the effect on oil prices. He was, however, unsuccessful in stopping the deal.

At an OPEC meeting in October 1986 Fahd sent his oil minister a cable demanding Saudi Arabia's oil quota to be increased and the price of oil set at $18, which Yamani refused to sign. Yamani's biographer suggests that Fahd did not understand basic economic principles, although the relationship between the King and Yamani had already greatly deteriorated by this time; apparently Yamani had begun to remove files from his government office in 1985.

On 29 October 1986 a brief announcement was made on Saudi television that Yamani had been dismissed. Detailed information of events is not known as Yamani refuses to discuss his last years in office or his relationship with King Fahd and the Sudairi Seven
Sudairi Seven
The Sudairi Seven, also spelled Sudairy or Sudayri, is the commonly used name for a powerful alliance of seven full brothers and their descendants within the royal family of Saudi Arabia. They are also known as the Al Fahd . They are sometimes referred to as the Sudairi Clan or the Sudairi faction...

. Fahd's jealousy and personal dislike of Yamani, the problems of the oil glut, and Yamani's questioning of barter deals may all have contributed to his dismissal. For some weeks after Yamani was prevented from leaving Saudi Arabia. He was replaced as Minister of Petroleum by Hisham Nazer, previously Minister of Planning.

Other activities

In July 1982 Yamani founded Investcorp
Investcorp
Investcorp is a manager of alternative investment products, serving high-net-worth private and institutional clients. Its principal client base is in the six countries of the Gulf Co-operation Council, but it also has institutional clients in North America and Europe...

, private equity firm, with several other oil ministers and well-known financiers. The Firm's initial investments included Tiffany & Co.
Tiffany & Co.
Tiffany & Co. is an American jewelry and silverware company. As part of its branding, the company is strongly associated with its Tiffany Blue , which is a registered trademark.- History :...

, Breguet
Breguet
Breguet may refer to: * Breguet , watch manufacturer* Breguet Aviation, a defunct French aircraft manufacturer; was formally known as "Société Anonyme des Ateliers d'Aviation Louis Breguet"...

, a Swiss
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....

 watch maker, and Chaumet
Chaumet
The House of Chaumet , founded in 1780, is a high end jeweler based in Paris. -Contemporary period : Bankruptcy, Investcorp, LVMH :...

, a French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

 jewellers. Yamani, himself known to be a watch lover, also became majority shareholder of Vacheron Constantin
Vacheron Constantin
Vacheron Constantin is a Swiss manufacture of prestige watches and a brand of the Richemont group. Considered by watch enthusiasts to be one of the finest traditional watch makers in the world along with Patek Philippe & Co., Jaeger-LeCoultre and Audemars Piguet.It employs around 400 people...

 in 1987. In 1996 Yamani's shares were then sold to Vendôme Luxury Group, owned by Richemont
Richemont
Compagnie Financière Richemont S.A. is a Swiss luxury goods holding company founded in 1988 by the South African businessman Johann Rupert. Richemont categorizes its businesses into four areas: jewellery, watch making, writing instruments and other, which encompasses clothing and firearms. The...

. During the eleven years of his ownership, watch production increased from 3,614 to 11,019.

In 1988 Yamani established the Al-Furqan Islamic Heritage Foundation under The Yamani Cultural and Charitable Foundation, which endeavours to preserve and publish historically important Islamic works.

In 1990 Yamani founded the Centre for Global Energy Studies, a London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

-based market analysis group claiming to provide objective information on energy issues. Board members have included Edward Heath
Edward Heath
Sir Edward Richard George "Ted" Heath, KG, MBE, PC was a British Conservative politician who served as Prime Minister of the United Kingdom and as Leader of the Conservative Party ....

, Valéry Giscard d'Estaing
Valéry Giscard d'Estaing
Valéry Marie René Georges Giscard d'Estaing is a French centre-right politician who was President of the French Republic from 1974 until 1981...

 and Denis Healey
Denis Healey
Denis Winston Healey, Baron Healey CH, MBE, PC is a British Labour politician, who served as Secretary of State for Defence from 1964 to 1970 and Chancellor of the Exchequer from 1974 to 1979.-Early life:...

, all friends of Yamani.

With the death of King Fahd
Fahd of Saudi Arabia
Fahd bin Abdul Aziz Al Saud, Custodian of the Two Holy Mosques, was King of Saudi Arabia from 1982 to 2005...

 in August 2005 some feel it is still possible that Yamani will return to the Saudi Government under King Abdullah
Abdullah of Saudi Arabia
Abdullah bin Abdul-Aziz Al Saud, Custodian of the Two Holy Mosques, is the King of Saudi Arabia. He succeeded to the throne on 1 August 2005 upon the death of his half-brother, King Fahd. When Crown Prince, he governed Saudi Arabia as regent from 1998 to 2005...

, most likely as an ambassador
Ambassador
An ambassador is the highest ranking diplomat who represents a nation and is usually accredited to a foreign sovereign or government, or to an international organization....

, but sources close to Yamani indicate that it is highly unlikely.

Yamani is fluent in Arabic
Arabic language
Arabic is a name applied to the descendants of the Classical Arabic language of the 6th century AD, used most prominently in the Quran, the Islamic Holy Book...

, English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...

 and French
French language
French is a Romance language spoken as a first language in France, the Romandy region in Switzerland, Wallonia and Brussels in Belgium, Monaco, the regions of Quebec and Acadia in Canada, and by various communities elsewhere. Second-language speakers of French are distributed throughout many parts...

.

His negotiation style, remarked on by no less than Kissinger, was to wine and dine other dignitaries until the point of fullness and lethargy, before beginning protracted negotiations (Reader's Digest, circa 1970).

External links

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