Shares of Saudi oil giant Aramco fell 1.1% at the opening of trading on the Saudi stock exchange on Sunday, according to Israeli media, reacting to the drone strike on the kingdom's East-West oil pipeline over the weekend.
The Saudi stock market opened Sunday with shares of state oil giant Aramco declining 1.1%, registering the first market reaction to the weekend drone attacks that crippled the kingdom's East-West oil pipeline. The modest drop signals investor concern over the security of Saudi energy infrastructure amid escalating regional tensions.
The pipeline came under repeated drone strikes launched from Iraq starting Friday evening. As The Zioneer reported Friday at 19:54 Jerusalem, Saudi Arabia shut down the strategic artery after multiple pumping stations were hit, causing casualties and significant damage. Saudi authorities attributed the attacks to Iranian-backed Iraqi militias. Satellite imagery later confirmed the destruction of a key pumping station. By Saturday, Iraq acknowledged the launches originated from its territory and dismissed the regional commander.
The East-West pipeline, capable of transporting roughly 210 million barrels of crude per month to the Red Sea port of Yanbu, is a vital economic alternative to the Strait of Hormuz. The attacks follow earlier Houthi strikes on Aramco facilities in Jazan and Abqaiq. Riyadh stated it would withhold retaliation at the request of Iraq's prime minister, while reserving its right to respond.
The full extent of the damage and a timeline for repairs have not been disclosed. Saudi authorities have not provided specific casualty figures. The share price movement at the opening of trading is the first measurable indicator of market sentiment since the attacks began.
9 developments
- StrongAramco shuts down pipeline in Al-Baqi and Riyadh area after Yemeni attack, reports say
- ConfirmedReuters: Saudi Main Oil Pipeline to Be Mostly Out of Service for 3–5 Weeks After Drone Strike
- StrongSaudi Arabia says strike retaliates for drone attacks on oil facilities, warns of response to any aggression
- StrongSaudi Aramco Q2 profit jumps to $33.4 billion on higher oil prices
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