Gulf Markets Slide as Houthi Threats Against Saudi Arabia Intensify
Gulf stock markets face downward pressure as Houthi threats against Saudi Arabia spark regional instability and disrupt critical shipping routes.
POLICY WIRE — Riyadh, Saudi Arabia — Major Gulf stock exchanges experienced a sharp decline during early trading sessions on Thursday. The downturn follows renewed threats from Houthi forces to launch further strikes against Saudi Arabia, placing the nation’s benchmark index on a trajectory for its sixth consecutive weekly loss.
Market volatility has been exacerbated by Houthi interference with maritime traffic through the Bab al-Mandab waterway. These threats are forcing vessels to bypass the region, resulting in longer, costlier shipping routes that have significantly inflated logistics expenses for both Saudi oil exports and essential imports.
The geopolitical tension arrives at a critical juncture for the Kingdom, which is currently advancing major infrastructure and development initiatives, including the preparations for Expo Riyadh 2030 and the 2034 football World Cup. Investors remain wary as the conflict, which has persisted for seven years between Saudi Arabia and the Houthi group controlling Sanaa, continues to weigh on regional economic sentiment.
Recent market data highlights the depth of the impact, with Saudi Arabia’s benchmark index previously dropping 0.9% to 10,782. This decline was driven by a 1.3% slump in the Saudi Arabian Mining Company and a 0.6% retreat in shares of the oil giant Saudi Aramco, as concerns regarding conflict escalation continue to dampen investor confidence across the Gulf.
Reporting by Policy-Wire (PW)
