Saudi stocks fell on Sunday, and losses spread to other Gulf markets, following an announcement by Yemen’s Houthi group that it had launched missile and drone attacks on targets in Riyadh, according to Reuters.
The Saudi stock benchmark index fell by 0.50%, with shares of oil giant Saudi Arabian Oil Company declining by 0.60%, while the National Bank of Saudi Arabia, the kingdom’s largest lender by assets, recorded a 0.50% drop.
These losses came after the Houthis announced they had targeted what they described as sensitive sites in the Saudi capital. Flames and thick smoke were seen near Riyadh's main airport, following warnings from authorities about a potential threat in the city's vicinity.
These latest attacks add a new source of regional risk to the broader conflict that erupted in the wake of the US and Israeli strikes on Iran in late February.
According to reports, US President Donald Trump rejected Saudi requests for direct US military intervention against the Houthis.
China has also secretly urged Tehran to help rein in the Iranian-allied group, following a Saudi appeal to Beijing, according to three Iranian sources familiar with the talks cited by Reuters.
These tensions cast a shadow over the rest of the Gulf markets, with the Qatari benchmark index falling by 0.90%.
Industries Qatar was one of the main factors putting pressure on the Qatari market, as shares of this petrochemical producer fell by 3.70%.
These declines reflect the sensitivity of investors to the growing regional escalation, particularly with the increasing attacks targeting Saudi Arabia, the world's largest exporter of crude oil and home to critical energy infrastructure.
The Houthi group has stepped up its attacks on Saudi Arabia amid renewed fighting in Yemen, including claims of strikes on Saudi Arabian Oil Company facilities in the Red Sea port city of Yanbu.
