Overview:
Crude oil breached the USD 100 per barrel threshold for the first time since May, driven by Houthi attacks on vessels in the Red Sea and escalating Middle East tensions. Global equity indices retreated early in trading as inflation fears resurfaced, bond yields climbed to multi-decade highs, and the U.S. administration announced new tariffs affecting major trading partners. The Saudi tourism sector demonstrated resilience, achieving 67% visitor growth between 2019 and 2025, while domestic financial institutions reported improved earnings.
Details:
Brent crude approached USD 110 per barrel in intraday trading, reflecting a weekly gain of approximately 12% as maritime chokepoints in the Red Sea remain under pressure. Shipping route disruptions have lengthened export pathways for Saudi oil, introducing a geopolitical risk premium into energy markets. The dollar strengthened to its highest level in four decades against the yen, supported by elevated oil prices and rising U.S. Treasury yields, while gold retreated USD 130 from weekly peaks to USD 4,030.09 per troy ounce amid expectations of higher American interest rates.
The Ministry of Finance approved seven new standards governing public procurement contracts, quantities, and purchasing procedures to improve expenditure efficiency and institutional governance. The Saudi Investment Bank reported net profits of 531.1 million Saudi riyals in the second quarter of 2026, up 3.6% year-on-year, while Electrical Industries Company achieved a 54% profit increase to 211.5 million riyals. The Eastern Province launched 459 new investment opportunities to support private sector development. Medina achieved the highest hospitality occupancy rate among Saudi cities at 82% during the first quarter. The Jeddah Tower project reached 430 meters of its targeted height exceeding 1,000 meters.
American stock indices fell sharply, with the Dow Jones declining 580 points as tariff uncertainty weighed on sentiment. The Tokyo Nikkei 225 dropped over 2% on concerns about technology spending. The U.S. administration announced new tariffs of 10-12.5% on principal trading partners, affecting 99.4% of American imports from 60 countries.
Outlook:
Investors are monitoring Red Sea security developments and their impact on global energy supply chains. Tariff implementation timelines and their inflationary effects will determine central bank policy trajectories through 2026, particularly regarding interest rate decisions.