Saudi, Gulf Stocks Decline After Houthi Group Claims Attack on Riyadh

Saudi Arabian stocks and other Gulf equities declined on Sunday after Yemen’s Houthi group said it had launched missile and drone attacks on targets in Riyadh. The incident has intensified investor concerns about the widening scope of regional geopolitical instability, according to a report from Reuters.

Broad-Based Declines

The sell-off was led by Saudi Arabia, where the benchmark stock index (TASI) fell by 0.5%. The losses hit major components of the index, including:

• Oil giant Saudi Aramco, which saw its shares drop 0.6%.
• Saudi National Bank, the country's largest lender by assets, which declined 0.5%.

The negative sentiment spread to neighboring markets. Qatar’s benchmark index slid 0.9%, weighed down by petrochemical producer Industries Qatar, whose shares fell 3.7%.

Geopolitical Tensions Escalate

Ad

The market downturn followed a Houthi claim of striking what it described as "sensitive" targets in the Saudi capital. The alleged attacks are the latest development in a broader regional conflict that has grown since U.S. and Israeli strikes on Iran in late February, the source material noted.

According to Reuters, which cited three Iranian sources, China has privately urged Tehran to help restrain the Iran-aligned Houthi group following a request from Saudi Arabia. The Houthis have reportedly increased their attacks on Saudi Arabia amid renewed fighting in Yemen.

Investor Sentiment and Regional Risk

The market reaction underscores investors' sensitivity to geopolitical flare-ups, particularly those involving Saudi Arabia, the world's largest crude oil exporter. The kingdom's critical energy infrastructure makes any perceived threat to its stability a significant concern for global energy and financial markets.

The Houthi group has previously claimed responsibility for strikes against key Saudi assets, including Saudi Aramco facilities. The latest incident reinforces the perceived risk to regional economic stability and has prompted a flight from riskier assets in Gulf equity markets.