Saudi Stocks Fall Amid Yemen Conflict Escalation

Saudi Arabia's stock market declined on Sunday after Yemen's Houthi group claimed to have struck 'sensitive' targets in Riyadh with missiles and drones. The confrontation has escalated tensions in the region, which is already grappling with the aftermath of US and Israeli strikes on Iran in late February.

The Saudi benchmark index dropped 0.5%, led by a 0.6% decline in oil major Saudi Aramco and a 0.5% fall in Saudi National Bank. The subdued sentiment spread across Gulf bourses, with Qatar's main index falling 0.9% due to a 3.7% drop in Industries Qatar.

China has privately urged Iran to help restrain the Houthi group, following a Saudi appeal to Beijing. This development comes as President Donald Trump reportedly rejected Saudi requests for direct US military intervention against the Houthis.