Overview:
Saudi Arabia's primary equity index rose 117.75 points to close at 10,823.62, supported by broad regional market strength following the postponement of new U.S. military action against Iran. Gold prices climbed above 4,067 dollars per ounce amid the de-escalation, while crude oil declined sharply by over 5 percent in early Asian trading. Banking deposits in Saudi Arabia increased by 206 billion riyals during the first half of 2026 compared with the prior-year period.
Details:
The Saudi stock market's advance reflected investor optimism across Gulf bourses after U.S. President Donald Trump delayed a military strike on Iran, signaling intent to pursue rapid negotiations instead. Trading volume on the Saudi exchange reached 6.2 billion riyals. The region's equities recorded near-universal gains in the session, with sentiment bolstered by reduced near-term geopolitical risk premium.
Oil futures contracted sharply, with Brent crude falling 5.52 dollars to 82.41 dollars per barrel—a 6.28 percent decline—as the postponement of military escalation eased supply security concerns. The retreat in crude prices helped support demand for alternative assets such as gold, which gained 0.7 percent in spot trading.
The central bank reported that bank deposits rose to new highs, reflecting continued liquidity expansion in the domestic financial system. Non-oil sector activity expanded at a modest 0.6 percent rate during the second quarter of 2026. The Saudi Central Bank also confirmed that the country ranked thirteenth globally in attracting foreign direct investment during 2025, advancing from seventeenth place in the prior year.
Outlook:
Investors will monitor developments in U.S.-Iran diplomacy and any revisions to OPEC Plus production targets, scheduled for announcement next month. Market volatility may persist if geopolitical conditions shift or if the Federal Reserve signals fresh monetary policy moves affecting global interest rate expectations.