Hormuz Tensions Rise as Saudi Arabia's PMI Holds Steady

Saudi Arabia's Purchasing Managers' Index (PMI) has maintained its fourth consecutive month of expansion, despite easing in July. Meanwhile, tensions in the region have escalated with attacks on Adnoc-affiliated vessels and an Aramco refinery in Jazan.

The UAE condemned Iranian strikes on Adnoc vessels in the Strait of Hormuz, rejecting any use of the waterway as 'a tool of economic coercion or blackmail.' The Houthis claimed a drone strike on an Aramco refinery in Jazan, which was already carrying battle damage from previous attacks. Riyadh has leaned on Western infrastructure to route energy away from Hormuz, but repeated attacks on Jazan and Yanbu are putting that Red Sea hedge under pressure.

Despite the risks, Adnoc has sold over 130 million barrels of crude across seven tenders since June, equivalent to more than a month of Japanese demand. The UAE is seen as having turned Hormuz risk into market edge by moving more oil to global buyers than any other Gulf producer.