Mohammad bin Salman’s appointment as Saudi Arabia’s Crown Prince may make Riyadh’s policy more hawkish against long-time enemy Iran and other Gulf rivals such as Qatar, increasing volatility in an already unstable Gulf region, analysts say.

“The elevation of Mohammad Bin Salman will likely mean minimal change to oil production policy but could bring more aggressive foreign policy moves that bring back the political risk premium,” said a research note by RBC Capital.

A royal decree that announced the changes said the decision by King Salman to promote his son and consolidate his power was endorsed by 31 out of 34 members of the Allegiance Council, made up of senior members of the ruling Al Saud family.

Intent on dispelling speculation of internal divisions in the ruling dynasty, Saudi television was quick to show that the change in succession was amicable and supported by the family.

The change ends uncertainty over succession and empowers Prince Mohammad to move faster with his plan to reduce the kingdom's dependence on oil, say analysts.

The royal decree did not nominate a new deputy crown prince. The position is relatively new in Saudi Arabia, where Kings have traditionally chosen their own successors. In an apparent attempt to appease the family, the decree had a clause that made clear that Prince Mohammad wont be allowed to appoint one of his own sons as his successor.