Saudi Arabia's War-Driven Budget Deficit Shrinks by Nearly Three-Quarters

Saudi Arabia's budget deficit shrunk by nearly three-quarters in the second quarter due to the ongoing war. The kingdom posted a 34.3-billion-riyal-or $9.1-billion-shortfall for the three months through June, down from 125.7 billion riyals in the first quarter.

Oil revenue rose 28% from the previous quarter as crude prices jumped, while spending fell 3.5%. Saudi oil output remains well below prewar levels after Iranian attacks and the closure of the Strait of Hormuz disrupted exports.

The Kingdom redirected crude through pipelines to the Red Sea port of Yanbu, allowing it to collect much higher prices on reduced volumes. Brent was trading near $90 per barrel Thursday and is up more than 47% this year.