Saudi Economy Shrinks Amid Rising Oil Prices

The Saudi economy contracted at its sharpest annual pace since the pandemic in Q2, but higher oil prices helped pad the treasury, resulting in a yearly low deficit.

This was revealed in the first hard data from the Hormuz disruption. The country's GDP shrunk, but the financial impact of the crisis was limited due to increased oil revenues.

The US-Saudi strikes on Iraq escalated tensions with Iran, with Baghdad demanding evidence for Saudi claims that Iran-backed groups launched drone attacks targeting Saudi infrastructure.