Country: SA | Published: 2026-09-16
Saudi markets remain anchored to the Red Sea security story, with a Houthi drone intercepted near Mecca triggering the city's first air raid alert and a claimed downing of a Saudi
Saudi markets remain anchored to the Red Sea security story, with a Houthi drone intercepted near Mecca triggering the city's first air raid alert and a claimed downing of a Saudi fighter jet, prompting Riyadh to warn of a red line. The Yanbu crude loading suspension persists, with European shipments cancelled and oil rerouted to Asia through ship-to-ship transfers off Oman, keeping supply concerns elevated even as inflation stays tame at 1.8% and domestic sukuk issuance continues. Diplomatic friction is adding a wrinkle, as Pakistan's prime minister publicly bristled over the Mecca-area drone incident while staying quiet on his pact with Riyadh.