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Saudi Arabia cut diplomatic and commercial ties with Iran because the nation feels completely abandoned over the Obama administration's diplomatic outreach to Tehran, Charles Krauthammer said on "Special Report."

The crisis between the countries erupted after Saudi Arabia executed a prominent Shia cleric, and Iranians retaliated by storming the Saudi embassy in Tehran.

Krauthammer said that Saudi Arabia is acting "fairly desperately" because they believe that President Obama has abandoned them, culminating in the Iranian nuclear agreement.

"What they read is complete abandonment. They are now on their own, and they're going to have to face the Iranians and their allies on their own," Krauthammer said. "And that means if you have to execute a Shiite who's an insurrectionist in their country, he's got to be executed."

"If Saudi Arabia falls ... which is what Iran's purpose is, then the entire Middle East is lost, and it comes under Iran," Krauthammer said, asserting that would be the greatest strategic catastrophe since the end of World War II.

"And I don't think this administration appreciates what's at stake here."

Watch more from the "Special Report" panel above.

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