Saudi Economy Faces Three Critical Tests Amid Iran War

The Saudi economy is preparing for three critical tests that will reveal the impact of the Iran war on its growth, budget, and oil sector.

The official statistics authority will release GDP data for the second quarter, followed by Saudi Aramco's financial results on August 4, and the publication of the state's general budget in the coming days.

Economists expect a decline in oil production due to a decrease in exports through the Red Sea, but they are more concerned about the non-oil sector's resilience and adaptability.

Average Brent prices were $97 per barrel during the second quarter, which could compensate for lower production rates. However, Aramco officials will have to assess the company's ability to redirect shipments through alternative routes in the Red Sea.