Saudi stocks fall to wartime low as Aramco weakens amid signs Gulf oil exports are recovering

Saudi Arabia's stock market slipped to its weakest level of the US‑Israel‑Iran war on Sept. 29, driven largely by a fall in Saudi Aramco shares as investors processed signs that Gulf crude exports are recovering after recent disruptions. The drop reflects shifting expectations about oil flows and prices that had earlier supported energy-sector valuations.

What drove the earlier rally and the subsequent slide

Brent crude surged earlier in the year, reaching about $120 a barrel in late April. That price surge pushed Aramco to a peak share price of 27.96 riyals in May. As hostilities eased and oil prices fell beneath $80 in June and early July, Aramco shares declined. The recent market reaction reflects a further re-pricing as signs emerge that crude shipments through and around the Strait of Hormuz are recovering.

Changes in oil flows and infrastructure incidents

The report notes specific disruptions and adjustments affecting Saudi oil routing. In September, drone attacks took the East‑West Pipeline offline for roughly two weeks before operations resumed. Saudi authorities also diverted some crude flows back toward the Strait of Hormuz during the period of disruption. The combination of the pipeline outage and subsequent resumption of operations—and data indicating increased Gulf loadings—helped signal that exports were rebounding.

• Feb. 28: War between US‑Israel and Iran is cited as the start date for the market reference point.

• May: Aramco peaks at 27.96 riyals.

• Further official data on Saudi export loadings and shipment routes through the Gulf and the Strait of Hormuz.
• Any new disruptions to the East‑West Pipeline or attacks affecting shipping lanes, which could re-tighten prices and alter investor sentiment.
• Aramco's share-price reaction to oil-market movements and any company statements about production or export capacity.

Aramco's weaker share price reflect a market recalibration: earlier gains tied to elevated oil prices have been pared back as crude flows show signs of recovery and immediate supply fears eased. Given Aramco's weight on the index, changes in oil exports and infrastructure security will remain primary drivers of near‑term Saudi market volatility.