Saudi, Gulf stocks fall after Houthis claim Riyadh attacks

On September 20, the stock markets of Saudi Arabia and the Gulf regions experienced a decline after Yemen's Houthi rebels claimed responsibility for attacking sensitive targets in Riyadh using missiles and drones. This development led to a prevailing sense of caution across the Gulf stock exchanges. Near Riyadh's primary airport, authorities issued alerts warning of potential danger due to the alarming situation.

The ongoing conflict, which emerged following US and Israeli strikes on Iran in late February, has added another layer to the existing tensions. Despite Saudi Arabia's repeated requests, President Donald Trump reportedly denied the kingdom's plea for direct US military assistance against the Houthis.

Saudi Arabia's benchmark index suffered a decline of 0.5%, driven by a 0.6% drop in oil giant Saudi Aramco and a 0.5% decrease in the country's largest lender by assets, Saudi National Bank. In a similar manner, China privately advised Iran to assist in curbing the actions of the Iran-aligned Houthis, following a Saudi request made to Beijing, as reported by three Iranian sources familiar with the conversations.

In Qatar, the main index witnessed a decline of 0.9%, largely influenced by a 3.7% drop in the petrochemical producer Industries Qatar. The overall market sentiment in the region remained subdued due to the escalating crisis and the uncertainty surrounding the future course of action.