Saudi, Gulf stocks fall after Houthis claim attacks on Riyadh

Saudi Arabian stocks experienced a decline on Sunday as Gulf markets suffered losses following Yemen's Houthis claiming attacks on Riyadh using missiles and drones, according to Reuters reports. The Saudi stock market's main index experienced a decrease of 0.5%, with major companies like Saudi Aramco and the country's leading lender, Saudi National Bank, recording drops of 0.6% and 0.5% respectively.

The decline in stock prices followed the Houthis' assertion that they had targeted sensitive infrastructure in the Saudi capital. Reports indicated visible flames and thick smoke near Riyadh's main airport, prompting authorities to issue warnings about potential dangers in the area. These recent attacks have introduced additional regional risks to an ongoing conflict that began with U.S. and Israeli strikes on Iran in late February.

U.S. President Donald Trump reportedly declined Saudi appeals for direct military assistance against the Houthis. China privately urged Iran to help curb the actions of the Iran-aligned group, following a request from Saudi Arabia, as cited by three Iranian sources familiar with the discussions reported by Reuters. These tensions have also impacted other Gulf markets, with Qatar's benchmark index falling by 0.9%.

The decline in Qatar's index was largely driven by the petrochemical producer, whose shares dropped by 3.7%. Analysts noted that the market reactions reflected heightened sensitivity among investors to the escalating regional conflict, particularly as it now involves Saudi Arabia, the world's largest crude exporter and host to significant energy infrastructure.

The Houthis have intensified their attacks on Saudi Arabia amid the renewed fighting in Yemen, with claims of strikes on Saudi Aramco facilities in the Red Sea port city of Yanbu.