Overview:

Oil prices climbed sharply, with Brent crude rising more than 1.5 percent to reach $96 per barrel—its strongest level since early June. The rally reflects escalating geopolitical concerns in the Middle East. Meanwhile, Saudi Arabia's stock market gained ground, with the main index advancing 76.65 points to close at 10,775.46, supported by mixed corporate earnings and steady investor sentiment despite external risks.

Details:

Crude oil prices accelerated on Wednesday as conflict tensions heightened Middle East supply concerns. Brent futures gained $1.93, or approximately 2 percent, to touch $96 per barrel, while West Texas Intermediate moved in tandem. The advance represents the strongest six-week performance and underscores investor focus on potential disruptions to regional shipping routes and infrastructure. The World Bank's chief economist cautioned that escalating Middle East conflict could slow global economic growth to 1.3 percent in 2026, down from earlier forecasts—a warning that may sustain oil price support.

On the corporate front, Saudi Yanbu National Petrochemical Company reported net profit growth of 482 percent to 258.8 million riyals in the second quarter of 2026, compared with 44.5 million riyals a year earlier. By contrast, Advanced Petrochemical Company swung to a loss of 98 million riyals in the same period. Jamjoom Pharmaceuticals posted a modest 4.2 percent earnings increase to 137.6 million riyals. The Saudi Arabia Investment Bank exceeded analyst expectations in the second quarter, supported by growth in investment income and currency transfer fees. Construction costs rose 2.7 percent year-on-year in June, signaling persistent pressure on development spending.

In land development, the Ministry of Municipalities and Housing confirmed that approximately 19 million square meters of blank land in Medina region entered development or trading. The municipality of Khobar issued 420 new commercial licenses during June, alongside renewal of 884 existing licenses, indicating steady economic activity momentum.

Outlook:

Investors are monitoring whether Middle East tensions persist or ease, as supply disruption fears remain a primary price driver for crude. Corporate earnings quality and construction cost trajectories will shape investor appetite for Saudi equities and real estate-linked sectors in coming months.