Overview:

Saudi Arabia's policymaking bodies reaffirmed their determination to advance large-scale development initiatives despite regional challenges following a reported agreement between the United States and Iran. Meanwhile, commodity markets exhibited mixed performance, with crude oil retreating to three-month lows while gold prices stabilized. Domestic equity indices closed lower, reflecting investor caution amid shifting energy market dynamics tied to potential reopening of the Strait of Hormuz.

Details:

The Council of Economic and Development Affairs convened to review quarterly performance metrics and reiterated that regional developments will not impede the kingdom's strategic infrastructure programs. Officials emphasized continuity in major projects as a cornerstone of economic resilience.

Crude oil prices declined approximately 4 percent, with Brent crude falling below USD 80 per barrel for the first time since March as markets assessed the likelihood of restored energy flows through the Strait of Hormuz. The Fitch credit rating agency warned of elevated risks to immediate strait reopening but projected Brent prices could fall to USD 70 per barrel. Conversely, gold remained relatively stable near USD 4,331 per ounce as investors awaited details on the US-Iran agreement and anticipated Federal Reserve monetary policy decisions.

The Saudi stock exchange closed lower, with the main index declining 8.56 points to 11,095.86 points, despite earlier sessions showing gains. Trading volumes reached 6.5 billion riyals. Wholesale price inflation accelerated to 4.6 percent year-on-year in May 2026, though consumer food prices fell 0.9 percent.

On the domestic front, retail sales reached 13.23 billion riyals in the week ending June 13. The construction sector demonstrated resilience, with the Al-Rajhi Finance index for construction rising from 48.5 points in April to 51.2 points in May, driven by increased housing demand.

Outlook:

Investors are monitoring oil market dynamics closely as geopolitical developments reshape energy supply expectations and pricing. The trajectory of Strait of Hormuz reopening and subsequent crude supply normalization remain critical variables for regional economic performance. Additionally, market participants are watching domestic inflation trends and monetary policy signals from global central banks for guidance on asset allocation decisions.