Saudi Stocks Rebound Despite Iran-US Tensions

The Saudi economy demonstrates incredible fortitude and resiliency in the face of growing tensions between Iran and the United States and their possible effects on regional markets.

Saudi stocks are making a significant comeback, indicating relative stability amid volatility and bolstering confidence in the Kingdom’s capacity to address the region’s complex economic and political challenges.

Recent Saudi Stock Market Performance

On Thursday, March 5, the Saudi stock market saw a strong rebound, recovering to levels close to those seen before tensions escalated between the US and Iran. The Tadawul All Share Index (TASI) rose 1.28%, supported by a more than 1.7% increase in Saudi Aramco shares as oil prices surged.

The rise in crude prices was driven by concerns over the continued closure of the Strait of Hormuz, a critical global oil route, and fears that the disruption could persist. The conflict and embargo in the region have hindered oil and gas shipments, while production cuts have further tightened supply. As a result, Brent crude climbed $3.12 to $84.52 per barrel, and West Texas Intermediate rose $3.13 to $77.79.

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TASI closed at 10,829.82 points with SAR 1.002 billion in trading value, as 252 companies recorded gains and only nine declined. Top performers included Petro Rabigh, MIS, Naseej, Printing & Packaging, and Dallah Healthcare, with increases ranging from 6.2% to nearly 10%.

Meanwhile, Amac, Extra, Saudi Cement, Bonyan REIT, and Taiba posted modest losses. Saudi Aramco, Americana, Kayan Saudi, Petro Rabigh, and Saudi Electric Industries led trading volumes, while Aramco, SABIC Agri-Nutrients, Al Rajhi, Saudi Electric Industries, and SABIC topped trading value.

On Sunday, March 8, the market opened with a further rise of over 2%, driven by optimism in the energy and petrochemical sectors as oil prices surpassed $90 per barrel. TASI approached the 11,000-point mark, boosted by a 4% jump in Aramco shares, adding nearly 294 billion riyals to its market value. SABIC shares rose 2.8%, and Petro Rabigh nearly hit the 10% daily limit, while finance, transportation, and telecommunications sectors also posted gains.

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How Do These Indicators Affect Saudi Economic Resilience?

In actuality, these metrics increase trust in the Saudi economy both domestically and internationally. The economy has persevered, sustaining the ongoing flow of capital and maintaining economic activity stimulated throughout numerous crucial industries, even as the war moves into its second week and the most important strait in the Middle East remains closed.

Along with the nation’s capacity to swiftly adjust to regional and global developments, this stability also supports steady economic growth and resilience in the face of external shocks.

In addition to bolstering maritime security and regional cooperation to ensure the stability of energy supplies and shield the economy from the effects of regional instability, Saudi Arabia is attempting to diversify its energy sources and export routes to address the challenges posed by the ongoing closure of the Strait of Hormuz.

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