Saudi Arabia

Iran-backed Houthi rebels fired missiles at King Khalid International Airport in Riyadh, Saudi Arabia, for the third time in a week, killing at least 12 people and injuring 309. It is the deadliest attack on Saudi Arabia in more than 10 years. Saudi civil aviation authorities said the attack on October 10 killed 12 people immediately: four Saudis, two Bangladeshis, and one civilian each from the United States, Jordan, Palestine, Syria, Sudan and Egypt. Saudi Arabia's threat warning system failed to send an alert before the incident, after two earlier attacks on the same airport killed four people. The Saudi-led coalition announced it would take decisive retaliatory measures, while a Houthi spokesman posted on the X platform declaring success in shutting down Riyadh airport and warning airlines worldwide to avoid Saudi airspace, designating the area a military operations zone. US President Donald Trump said at the White House that the United States is considering the possibility of sending troops to join Saudi Arabia in striking the Houthis, and will speed up a decision on action quickly after receiving the latest attack report. The fallout from the attack forced all airlines to divert flights away from Riyadh and temporarily suspend operations at the main airport serving the capital's population of more than 8 million. Data from the Flightradar24 website showed that all flights heading to Riyadh were cancelled or rerouted, with only military helicopters hovering over the airport.

Oil companies announced four separate transactions in four trading days as Brent crude held above $100 a barrel, with the U.S. Energy Information Administration now expecting Brent to average $96.32 a barrel in 2026 and $83.74 in 2027, up from $91.01 and $73.74 a month ago in its October Short-Term Energy Outlook. The EIA said Brent averaged $114 a barrel in September, $23 higher than in August, and touched a daily high of $131 on September 15 after attacks on Saudi Arabia's East-West pipeline temporarily halted flows on a route that bypasses the Strait of Hormuz, and it assumes Middle East oil flows stay constrained through the fourth quarter with shut-ins averaging 4.5 million barrels per day. Cenovus Energy agreed on October 5 to acquire Athabasca Oil Corporation for C$12.00 per Athabasca share, payable in cash, Cenovus shares or a combination, for an implied enterprise value of C$5.7 billion, adding about 45,000 barrels of oil equivalent per day and expected to generate about $85 million a year in synergies. Energy Transfer agreed on October 6 to acquire Vaquero Midstream for about $2.6 billion, made up of $1.95 billion in cash and about 33.3 million newly issued Energy Transfer common units, adding roughly 300 miles of pipeline in Texas and the Caymus Processing Complex with about 675 million cubic feet per day of capacity. Chevron subsidiaries signed definitive agreements on October 6 with Hess Midstream to extend Bakken midstream terms, expecting to cut Bakken unit midstream costs by about 50%, divest its Hess Midstream interests and transfer DJ Basin crude oil midstream assets for $200 million in cash, and fully deconsolidate Hess Midstream including about $3.7 billion of its debt. Crescent Energy agreed on October 8 to acquire Devon Energy's Eagle Ford assets for an estimated net purchase price of about $3.85 billion after adjustments, adding about 68,000 barrels of oil equivalent per day of net production and more than 600 Tier 1 net locations, and launched a $1 billion offering of Class A common stock the same day. Shell issued its third quarter 2026 update note on October 7, pointing to an indicative refining margin of $42 a barrel, up from $24 in the second quarter, with Integrated Gas production expected at 740,000 to 780,000 barrels of oil equivalent per day and third quarter results scheduled for October 29.

West Texas Intermediate crude for November delivery rose 0.46 dollars, or 0.51%, to 89.90 dollars a barrel at 10:20 p.m. Thailand time, amid concerns that Middle East shipping and supply could be disrupted. Brent crude for December delivery rose 1.31 dollars, or 1.30%, to 101.89 dollars a barrel. The main drag on sentiment came as Yemen's Iran-backed Houthi group launched attacks on Saudi Arabia, with Saudi aviation authorities saying airports in Jizan and Najran were targeted twice, as the conflict between the Houthis and Saudi Arabia intensifies. At the same time, investors are once again worried about oil supply problems after Iran stepped up attacks on tankers passing through the Strait of Hormuz, which could directly affect the still-fragile recovery of oil exports through this key route.

Yemen's Houthi group issued a statement warning it may escalate attacks on Saudi Arabia's airports, ports and other infrastructure, and will retaliate against any country that joins this conflict, after a new wave of airstrikes hit Sanaa, Yemen's capital under Houthi control, along with several northern provinces on the night of Tuesday, October 6. The Houthis' Al-Masirah television station said the strikes targeted various areas in Sanaa as well as Amran, Saada and Al-Jawf provinces, and described the incident as an invasion by Saudi Arabia. Residents told Xinhua they heard several loud explosions across the capital, but the targets and the extent of the damage were not immediately clear. The strikes came amid a sharp escalation in fighting between the Houthi rebels and Yemeni government forces backed by Saudi Arabia, particularly in areas near the Bab el-Mandeb Strait, a strategic point in southwestern Yemen. Muhammad Al-Bukhaiti, a member of the Houthi political council, said in an interview broadcast on Lebanon's Al-Mayadeen television that government forces managed to break through Houthi defenses in their latest advance on Monday, October 5. However, he claimed the advance had since been halted. Yemen has faced conflict since late 2014, after the Houthis seized Sanaa and much of northern Yemen, prompting a Saudi-led coalition to launch a military intervention in 2015 in support of Yemen's internationally recognized government.

Brent and WTI crude prices rose more than 1% on the morning of October 7 after Iran-backed Houthi forces in Yemen launched attacks on Saudi Arabia, raising concerns about crude shipments from the Middle East. December Brent crude futures climbed 1.17% to $101.76 a barrel, while November WTI crude futures rose 1.26% to $90.57 a barrel. Saudi Arabia's aviation authority said on Tuesday, October 6, that airports in the cities of Jazan and Najran were the targets of two attacks, amid escalating conflict between the Houthis and Saudi Arabia. Saudi Energy Minister Prince Abdulaziz bin Salman said crude flows through the East-West Pipeline reached as high as 5.8 million barrels as of Tuesday morning, and the Houthis issued a warning telling international airlines to avoid Saudi airspace, saying it could become a military operations zone.

Morgan Stanley lowered its 2026 GDP forecast for Saudi Arabia to -1.8%, citing a more prolonged oil supply disruption than previously expected, with oil export volume normalization now seen delayed until the second quarter of 2027. The investment bank said oil export volumes in the third quarter of 2026 remained below expectations, deepening the drag on headline growth despite continued support from non-oil activities, which are projected to grow 3% in 2026. Morgan Stanley expects crude production to average around 6.3 million barrels per day in the fourth quarter of 2026, leading to a further 28% year-over-year contraction in oil activity during that period, and estimates full-year oil GDP will contract 17.8% in 2026. The bank's base case assumes crude exports will remain in the 4-5 million barrels per day range in the fourth quarter, supported by a mix of constrained flows through Hormuz and available export access through the Yanbu pipeline. For 2027, Morgan Stanley forecasts a strong reversal, with oil GDP expected to expand by approximately 23% as production and export capacity gradually normalize, and it expects oil fiscal revenue to total 685 billion Saudi riyals in 2026, increasing to 740 billion riyals in 2027 as export volumes recover while prices remain above $75 per barrel on average in the first half of 2027.

The Iran-backed Houthi rebel group has issued a warning to international airlines to avoid using Saudi airspace, saying it could become a military operations zone, amid escalating military confrontation between the two sides. The humanitarian operations coordination center under Houthi administration said in a statement released via Al-Masirah television that the warning was directed at all airlines operating in Saudi airspace, in order to protect the safety of civil aviation and passengers. The Houthis claim that Saudi military aircraft are striking various areas in Yemen under Houthi control. The statement did not specify the time or location of any potential operations, nor did it name any specific airports or flight routes that might be affected. The warning comes as fighting in Yemen has intensified sharply, with the Saudi-led coalition launching a major air operation involving 100 fighter jets under the name Operation Dawn of Yemen, claiming to have destroyed 324 Houthi targets since the operation began. Meanwhile, Yemeni government forces have announced a strategic offensive toward Sanaa, which is under Houthi control, and fighting has also intensified around the Bab el-Mandeb Strait, a key shipping route connecting the Red Sea with the Gulf of Aden.

Oil prices remain in focus as the war in Iran has widened into a proxy fight between the Saudi-backed Yemen government and the Iran-backed Houthis, with barely any oil tankers moving through the Strait of Hormuz, though WTO spot oil prices sit at $90 per barrel and Brent crude at $102 per barrel. Trading opens a breather week between last week's jobs and PCE inflation reports and next week's unofficial start of Q3 earnings season, with pre-market futures turning lower, spot oil relatively muted at sustained higher levels, and bond yields flattish but elevated. September S&P Services PMI and ISM Services are due after the opening bell, with ISM expected to dip slightly to 55 from 55.4, both indexes still well above the 50 growth line. This week also brings August Consumer Credit on Wednesday ahead of the preliminary University of Michigan Consumer Survey for October on Friday, and Tuesday's U.S. Trade Balance ahead of August Monthly Wholesale Trade numbers on Thursday. PepsiCo reports Thursday morning with earnings growth of 0.00% year over year and revenue growth of +3.94%, while Delta Air Lines reports Friday with projected earnings growth of +14.65% and revenue growth of +6.15%; both stocks currently sit at sell-levels on the Zacks Rank.

Iran is reviewing U.S. comments on its proposal to end the fighting and reopen the Strait of Hormuz, Iranian Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi said on Sunday, October 4. Saudi Arabia, the Middle East's largest crude oil exporter, announced it will cut prices for November-loading crude for Asian customers, an unexpected move, while raising prices for customers in Northwest Europe and the Mediterranean. Meanwhile, Japanese Chief Cabinet Secretary Minoru Kihara confirmed on October 5 that Japan has no plans to release additional crude oil from its national reserves, as it has already released supply into the market, even though the G7 countries reached an agreement on Friday, October 2, to release a total of 100 million barrels of diesel and crude oil from emergency reserves. In Japan itself, authorities plan to amend economic security legislation to require companies and organizations holding big data to notify the government before transferring or disclosing sensitive personal information to third parties. Daiwa Securities Group disclosed on October 5 that data on approximately 110,000 customers of its securities brokerage subsidiary, including non-personal information, may have leaked after a server managed by a subcontractor was accessed without authorization. Also on the same day, Japanese Prime Minister Sanae Takaichi delivered a policy speech to parliament, pledging to cut the consumption tax on food products without issuing new bonds in order to reassure the markets. In addition, the U.S. Federal Bureau of Investigation announced the arrest of a California woman at Los Angeles International Airport on Sunday, October 4, charging her with acting as an unregistered agent of a foreign government after she was found surveilling and following the son of Taiwan's president on the orders of Chinese government officials. U.S. President Donald Trump announced the creation of the Super Intelligence Force, a new federal task force to coordinate government artificial intelligence operations. Spanish Prime Minister Pedro Sánchez announced early elections on November 29, acknowledging his government's mistakes after facing heavy pressure from public protests over the housing crisis across the country, and after parliament rejected the emergency decree aimed at addressing the crisis.

Saudi Aramco, the Saudi state oil company, announced an official selling price, or OSP, cut for its Arab Light crude for November delivery to Asian customers of $3 per barrel, bringing it to $5 per barrel below the average of Oman and Dubai crude prices. That is the largest cut since June 2020 and runs counter to analysts' expectations of a $3 per barrel increase. The company also cut prices for Arab Medium and Arab Heavy crude for Asia by as much as $5 per barrel, while raising prices for all grades for customers in northwest Europe by another $3 per barrel after resuming exports from the Red Sea port of Yanbu. Prices for US customers were left unchanged. On production policy, the OPEC+ group, made up of seven members, namely Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, decided to keep oil production for November 2026 at existing levels after concluding a video conference meeting on Sunday, October 4. The next meeting will be held on November 1 to review market conditions and decide the next step in production policy.

JPMorgan Chase and Goldman Sachs assess that crude oil export volumes from the Middle East are likely to recover to pre-war levels, though risks remain. JPMorgan said crude shipments have recovered to 17.5 million barrels per day, or 98% of pre-war levels, while shipments of refined products such as diesel and gasoline stand at 3 million barrels per day, or 58% of pre-war levels. Measured on a 10-day average over the past five days, overall oil shipment volumes stand at 89% of 2025 levels. Shipments through the Strait of Hormuz have returned to their late-June peak of nearly 13 million barrels per day, led by exports from Saudi Arabia, which has restored about half of its exports through the East-West Pipeline to Red Sea ports after attacks earlier in the month. Goldman Sachs said oil exports from the Persian Gulf, including a rise in covertly shipped oil, reached 23.3 million barrels per day over the past week, close to the 2025 average, and assessed that the global oil market was broadly balanced in September. Saudi Arabia's exports more than doubled in September and were above the 2025 average, while Brent crude is on track for a third consecutive monthly gain, expected to rise about 14% in September.

The Saudi-led coalition in Yemen revealed that it intercepted 2 guided missiles and 2 drones fired into Saudi Arabia by the Iran-backed Houthi group. The two missiles were headed toward the city of Khamis Mushait, while the two drones were headed toward Riyadh. Civil defense authorities issued warning alerts overnight for the Khamis Mushait and Abha areas, but no alert was issued for Riyadh. The attack came after the Houthis announced a maritime blockade against Saudi Arabia in July, targeting Saudi ships in the Red Sea, creating pressure on global oil supplies and risk to Red Sea shipping routes, while navigation through the Strait of Hormuz remains largely blocked. Amid the situation, military commanders of Saudi Arabia, Pakistan, and Turkey, which are defense allies, met in Riyadh just a few hours earlier to review the threats Saudi Arabia is facing, after the three countries signed the joint Mecca defense agreement in August, which states that an armed attack on any one country will be considered an attack on all. Saudi Defense Minister Prince Khalid bin Salman said he discussed with Asim Munir, Pakistan's army chief, in Riyadh and confirmed the continuation of joint cooperation to counter attacks under the agreement.

Iranian President Masoud Pezeshkian said that ending the war, now in its seventh month, depends on a decision by the United States. Speaking in an interview with Fox News broadcast on Thursday, September 24, he said America must choose whether to end this, after being asked whether the war could end by the end of this year. Fighting continues, with Houthi forces launching a barrage of missiles and drones at targets in Saudi Arabia on the morning of September 25. Saudi authorities said they intercepted six missiles and issued alerts in Mecca, Jeddah and Yanbu. Saudi Arabia, Turkey and Pakistan are preparing an emergency meeting of military commanders to discuss ways to assist Saudi Arabia under the joint Mecca defense agreement, and Saudi Arabia's Grand Mufti called on forces to be ready to fight the Houthis until the group is removed from power. Pezeshkian said the Houthis must take responsibility for their own actions and that Iran is not in a state of war with Saudi Arabia. The Iran issue was also raised at the US-China summit in Washington, where Chinese President Xi Jinping, during a three-day visit to the United States, discussed a range of issues with President Donald Trump, including trade, artificial intelligence, Taiwan and Iran. Zhai Jun, China's special envoy for the Middle East, said the situation in the Middle East was one of the key issues discussed by the US and Chinese leaders, and said the shared views of both sides are important for defusing the conflict. Trump wants China to help pressure Iran to find a way to end the war, after the United States and Iran returned to indirect talks on the sidelines of the United Nations General Assembly in New York. Iranian officials have signaled that the Strait of Hormuz could reopen within seven days if the United States begins to ease its maritime blockade of Iranian ports.

French President Emmanuel Macron has revealed that France is preparing to send military equipment to help defend Yanbu, a key industrial and energy hub on Saudi Arabia's Red Sea coast. In an interview with French television station TF1 on Thursday, September 24, he said France had reached a final agreement in talks with Saudi Arabia on sending military equipment to protect the area, including troops, radar and air defense systems. Asked about the possibility of sending Rafale fighter jets, Macron said France would consider it based on changes in the situation and necessity, noting, "We already have some fighter jets stationed in this region." The French leader said the most important thing for him was "bringing energy prices down," and also mentioned the need to release oil from reserves and restore smooth transport routes in the Middle East. Xinhua News Agency reported that Macron's remarks came after Yemen's Houthi group said on Saturday, September 19, that it had launched a large-scale attack in Saudi Arabia, targeting the Saudi capital Riyadh and the city of Yanbu, marking a major escalation of the conflict between the two sides. Earlier on Thursday, the Saudi-led coalition said its air defense systems had intercepted six Houthi ballistic missiles aimed at the Saudi cities of Taif and Yanbu, while Saudi Arabia continued its air strikes against Houthi-held areas across Yemen.

West Texas and Brent crude prices rose about 3% after Houthi attacks on Saudi Arabia, raising concerns over supply and the safety of energy infrastructure, particularly the East-West Pipeline and the port of Yanbu, which are key routes for Saudi Arabia's oil exports. West Texas crude stood at 94.61 dollars per barrel, up 2.45 dollars, and Brent crude stood at 106.60 dollars per barrel, up 3.52 dollars. The oil price situation analysis unit of Thai Oil Public Company Limited said the market is still watching tensions between the United States and Iran after the United States expanded secondary sanctions against foreign companies doing business with Iran, while Iran has signaled retaliation against countries that comply with those measures. However, after the market closed, Iran's foreign minister revealed that Iran had submitted a proposal to the United States through intermediaries during talks on the sidelines of the UN General Assembly to reopen the Strait of Hormuz and return to negotiations to end the conflict within seven days. This development raises hopes that tensions in the Middle East may ease and opens the way for shipping through the Strait of Hormuz to return to greater normality, which would help increase the volume of oil reaching global markets and reduce supply risks.

North Sea Brent crude for November delivery closed at $106.60 a barrel, up $3.52, or 3.4%, hitting its highest level since September 15, after Yemen's Houthi group fired missiles at Saudi Arabia, raising concerns that energy supplies could be disrupted. During the session, prices climbed as much as 5%, the day's high, before paring gains after reports that the United States and Iran were discussing the reopening of the Strait of Hormuz. West Texas crude for November delivery closed at $94.61 a barrel, up $2.45, or 2.7%, its first gain in several days after falling 13% over the previous six trading sessions. The Saudi-led coalition said it intercepted six missiles fired by the Houthis into the southern province of Taif and the Red Sea city of Yanbu, while Iranian airlines were suspended from operating in several neighboring countries, including the United Arab Emirates and Oman. Reuters reported, citing sources, that US and Iranian negotiators in New York are discussing a step-by-step path to ending the war, which could include Iran reopening the Strait of Hormuz in exchange for the United States lifting its economic blockade. Dennis Ross, a former US negotiator, put the odds of the two sides reaching a deal before the November 3 midterm elections at just 30%.

Goldman Sachs has raised its December Brent crude forecast to $85 a barrel as persistent energy-supply disruptions push inflation expectations higher across Asia. The call carries a twist for investors: with Brent recently trading around $100 and the supplied market snapshot showing roughly $107, the higher forecast still implies a significant retreat from current levels, suggesting the bank expects geopolitical risk premiums to fade rather than oil's latest surge to persist. The adjustment follows months of disrupted Middle East supplies and restricted flows through the Strait of Hormuz, which have left energy-importing Asian economies particularly exposed. Goldman expects higher energy costs to show up more clearly in September import and producer prices across Asia-Pacific economies, with a smaller immediate impact on consumer inflation because subsidies and regulated prices in several countries cushion households. The bank expects particularly stronger-than-consensus 2027 inflation in India and Malaysia, while its forecasts sit further below consensus in Japan, Vietnam and the Philippines. Saudi Arabia has restarted its East-West pipeline, but full capacity could take weeks to recover.

SLB announced it has been awarded four integrated well construction contracts by Aramco to support oil and gas development across the Kingdom of Saudi Arabia. Under the three-year contracts, SLB will manage end-to-end well construction services and deliver more than 450 wells, with an optional extension of up to two years. The awards represent a significant expansion of SLB's integrated well construction business in the Kingdom and build on decades of collaboration between the two companies. SLB's integrated model combines digital drilling workflows with automated drilling, evaluation, fluids, cementing, and completions products and services. Steve Gassen, executive vice president of Geographies for SLB, said awarding these advanced well construction programs at scale reflects Aramco's confidence in the company's integrated model and capabilities.

Microsoft unveiled plans for a total investment of more than 10 billion US dollars across the Gulf states, namely the United Arab Emirates, Saudi Arabia, Qatar and Kuwait, spanning the period from now through 2030, aimed at expanding cloud and artificial intelligence infrastructure, alongside a digital resilience strategy to cope with uncertainty from regional war. Brad Smith, vice chair and president of Microsoft, told Reuters on Wednesday, September 23, that the funding reflects continued infrastructure building and expansion of operations in the Middle East, with the company proceeding with plans laid before the conflict and accelerating budget allocation more aggressively, alongside cooperation with Gulf state governments on crisis response and protection of critical data. The investment plan of more than 400 million US dollars to develop undersea cable networks and terrestrial networks across the Middle East region by 2030 is a sub-component of the total 10 billion US dollar investment plan. On the local partner front, Microsoft is also deepening cooperation with Abu Dhabi's G42, in which it acquired a minority stake worth 1.5 billion US dollars in 2024, which also brought Smith onto its board of directors, as well as working with Saudi Arabia's Humain and Qatar's Qai on major projects in each country, though there are no plans to inject joint investment funds into the latter two companies.

West Texas Intermediate and Brent crude prices declined after Saudi Arabia resumed operations at the East-West Pipeline on September 22, 2026, and was able to resume oil exports through the Yanbu port the same day, easing market concerns over oil supply risks from the conflict situation in the Middle East. WTI crude stood at 94.59 dollars per barrel, down 1.19 dollars per barrel, while Brent crude stood at 99.25 dollars per barrel, down 1.09 dollars per barrel. However, returning the pipeline to full capacity may take approximately 6-8 weeks. The market is still monitoring the situation around the Strait of Hormuz after Iran expressed readiness to reopen the strait within 7 days if the United States eases military pressure and ends its blockade of Iranian ports. Meanwhile, President Donald Trump has lowered expectations for a near-term peace deal with Iran, stating that an agreement may come after the U.S. midterm elections in early November 2026, and the market is also watching the United Nations General Assembly, or UNGA, meeting in New York this week.

Saudi Arabia has partially restarted the crude oil pipeline linking the east and west of the country, Reuters reported, citing multiple sources. The pipeline is part of a route that bypasses the Strait of Hormuz, a key chokepoint for crude shipments that has been effectively blockaded, but it had been shut down after being hit by a drone attack on the 10th of this month. It is now operating at reduced flow. According to security sources, it will take several days to restore flow to 40 percent of capacity, and six to eight weeks for a full recovery.

A senior Iranian official told Kyodo News that Iran has offered to reopen the Strait of Hormuz within seven days if the United States begins preliminary steps to reduce military pressure, part of the Iranian government's stepped-up efforts to revive negotiations with Washington. Meanwhile, Saudi Arabia has increased crude oil exports through its Gulf coast ports after last week's attacks forced a halt to oil shipments through the East-West Pipeline, which links the eastern oil-producing region to the Yanbu port on the Red Sea. British Prime Minister Andy Burnham said the UK will send one Voyager aerial refueling aircraft to Saudi Arabia in the coming days to support national defense missions, after Saudi Arabia faced an increase in attacks from the Houthi group. On the technology front, Alibaba Group announced a major strategic plan to train a new generation of artificial intelligence models with parameter sizes of up to 5 to 10 trillion, along with the launch of the latest-generation Zhenwu V900 AI chip and plans to expand data centers, to drive a comprehensive AI infrastructure strategy spanning models, processing chips, and cloud data centers. Meanwhile, a South Korean appellate court ruled to reduce the prison sentence of Kim Keon-hee, wife of former President Yoon Suk Yeol, to five years from the seven years handed down by the lower court, in a corruption case that included the selling of posts in state agencies. And Converse, a Nike-owned shoe brand, announced it is removing its controversial advertisement from all channels and issued a formal apology after facing intense criticism that elements of the image evoked the Ku Klux Klan.

British Prime Minister Andy Burnham revealed on Monday, September 21, that the UK will send one Voyager air-to-air refuelling aircraft to Saudi Arabia in the coming days to support its national defence mission, after Saudi Arabia faced increased attacks from the Houthi group. Burnham said the Saudi government had submitted a request for military assistance to the UK, and he approved the air-to-air refuelling support the previous night on the advice of the defence minister and the foreign minister, stating that the support would be for a limited period and that the UK would review it according to the situation. He also stressed that the UK continues to play a role in the Middle East by supporting efforts to open shipping routes in the Strait of Hormuz. Reports said Saudi Arabia decided to seek help from the UK after the Houthis, who control populated areas of Yemen, stepped up attacks on Saudi Arabia, creating a new front amid a regional war that erupted after the United States and Israel struck Iran in late February. Previously, the UK deployed the Sky Sabre air defence system to Saudi Arabia to help defend against missile attacks from Iran during the conflict between the United States, Israel and Iran. The UK and Saudi Arabia have had close military ties for decades, with the UK being one of the major arms suppliers to Saudi Arabia.

Saudi Arabia has increased crude oil exports through ports on the Arabian Gulf after last week's attack forced a halt to oil shipments through the East-West Pipeline, which links the eastern oil-producing region to the Yanbu port on the Red Sea. Data from TankerTrackers.com indicated that Saudi Aramco loaded crude onto seven very large crude carriers, or VLCCs, carrying a total of about 14 million barrels in the Arabian Gulf on Sunday, September 20. Satellite images showed all seven vessels near Saudi Arabia's Ras Tanura port. Meanwhile, data from Vortexa showed that over the past week Saudi Arabia turned increasingly to Arabian Gulf ports for crude exports, with average loadings of about 3.7 million barrels per day since September 12, up from an average of 2.9 million barrels per day earlier in the month. During September 1-11, loadings through Red Sea ports averaged about 3.9 million barrels per day. The partial recovery pushed Brent crude below 100 dollars a barrel on Monday, September 21, for the first time since September 9, after the September 13 drone attack forced Saudi Arabia to shut the East-West Pipeline and suspend crude loadings at Yanbu port. As a result, Saudi Aramco cancelled spot crude sales to some European customers and shifted to increased sales to Asian customers, using oil from eastern ports and shipping it through the Strait of Hormuz instead.

Cho Thavee Public Company Limited, or CHO, disclosed that on September 14, 2026, the company signed a memorandum of understanding, or MOU, with Tharawat Sanam Company of Saudi Arabia. The main purpose of this cooperation is to develop the manufacturing and assembly of ground support equipment, or GSE, for use at airports in Saudi Arabia, as well as to expand production capacity to support exports within the Middle East region. As for key details of this MOU, no total transaction value has been specified. The agreement has a term of five years from the date of signing, and the parties may mutually agree to extend the cooperation period. The company assesses that the aviation business market in Saudi Arabia is in a period of continuous growth, and the cooperation therefore represents an important step for the company in bringing its internationally recognized technology and engineering capabilities into the Saudi Industrial Localization Ecosystem, as well as creating opportunities to further expand its business in Saudi Arabia and the wider Middle East region.

Analysts at Yuanta Securities (Thailand) said refinery stocks are likely to consolidate after the market priced in a smaller-than-feared impact from Saudi Arabia's shutdown of an oil pipeline for repairs, as more oil is being shipped via tankers through the Strait of Hormuz. Crude prices reversed lower by about 2% on Friday and held steady this morning, even as US-Iran tensions show no sign of easing. The US president expects the conflict to end soon, and the market may give this more weight as the US midterm elections on November 3 approach. If oil prices continue to weaken, especially if they break key support levels, with WTI and Brent support at $99 a barrel and $100 a barrel respectively, a significant pullback is expected. That would pressure bond yields lower and lift investment assets, particularly emerging markets and anti-oil sectors such as power plants, transport and packaging. Meanwhile, upstream energy names, especially refineries, may consolidate on concerns about government intervention.

Hakan Fidan, Turkey's Minister of Foreign Affairs, said on Saturday, September 19, that Turkey will honour its commitments under the joint Mecca defence agreement in response to recent military attacks on Saudi Arabia, and may provide technical assistance. Fidan told Turkish media that the signatories to the Mecca agreement are closely watching the Houthi attacks on Saudi Arabia, stressing that the agreement contains relevant provisions and that Turkey will keep its promises. He noted that Saudi Arabia's requests for assistance are likely to focus on certain technical matters that Turkey can address. Fidan also rejected claims that implementation of the Mecca agreement is proceeding slowly, pointing out that the alliance is open to countries across the region and constitutes a transformative agreement. The joint Mecca defence agreement was signed on August 7 in the Saudi city of Mecca by Crown Prince and Prime Minister Mohammed bin Salman bin Abdulaziz Al Saud of Saudi Arabia, President Recep Tayyip Erdogan of Turkey, and Prime Minister Muhammad Shehbaz Sharif of Pakistan. The agreement states that an attack on any signatory will be regarded as an attack on all member states. Tensions between Saudi Arabia and the Houthi group in Yemen have escalated in recent months, with both sides launching repeated retaliatory strikes.

Riyadh, Saudi Arabia, faced two air-raid warnings in the early hours of today, September 19, marking the first time the country's capital has seen such alerts since the period when war between the United States and Iran intensified in March and April. Saudi Arabia's early-warning system issued an emergency alert in Riyadh at 4:00 a.m. and again at 6:00 a.m., without disclosing further details. Meanwhile, Saudi Arabia's civil defense authority said the danger had ended shortly after both alerts. Other areas across the country received similar warnings throughout the past night, including Jeddah and Yanbu on the Red Sea, as well as Farasan Island in the Red Sea. The warnings came amid a new wave of attacks Saudi Arabia has faced in September, with the Iran-backed Houthis based in Yemen striking cities in western Saudi Arabia, including energy infrastructure, over the past week. The Saudi government said a drone attack from Iraq, home to several Iran-backed armed groups, forced the East-West oil pipeline to halt operations. In addition, attacks on the pipeline and Iran's closure of the Strait of Hormuz have sharply reduced Saudi Arabia's oil exports and created further problems for Crown Prince Mohammed bin Salman, the kingdom's leader. The renewed conflict also risks affecting Saudi Arabia's efforts to attract investment and tourists, part of its push to diversify the country's economic structure. In October, Riyadh is scheduled to host Saudi Arabia's flagship investment conference, the Future Investment Initiative, with the 2026 annual gathering set to welcome several senior Wall Street executives, including JPMorgan Chase & Co CEO Jamie Dimon and David Solomon of Goldman Sachs Group.

Boeing has secured regulatory relief to continue selling 777F freighters and gained approval as prime contractor for a US$5.75 billion JDAM-ER munitions package to Saudi Arabia. The FAA waiver covers 35 extra 777F sales, extending a profitable widebody program at a time when free cash flow is constrained by 737 and 787 production issues. Separately, AerSale Corporation previously announced the lease of a Boeing 757-200PCF freighter to Kazakhstan-based Jupiter Jet. Together, the freight and defense developments help offset pressure from ongoing 737 and 787 production challenges, though they do not fully counter the key near-term catalyst of stabilizing 737 output or the biggest risk around cash generation and high debt. Investors are also watching the unresolved risk of a possible SPEEA strike and its potential impact on cash flow.

Lockheed Martin is set to benefit from a US government plan to sell up to 48 F-35 jets to Saudi Arabia, following a notification to Congress in 2026, a package that would mark the first sale of F-35 aircraft to the kingdom. The company also marked the rollout of Germany's first F-35A in 2026, a key step in Berlin's transition to the aircraft. The Saudi notification for up to 48 F-35s would, if approved and executed, add a new Gulf customer to a platform already adopted by 20 nations and operating from 42 bases worldwide, extending an existing global footprint rather than creating a new product line. The next concrete waypoint is formal progression of the Saudi sale through Congress after the 2026 notification, which would turn a proposed package into a contracted backlog line, while for Germany investors can track the first eight F-35 deliveries to Ebbing Air National Guard Base for pilot training beginning this fall. Lockheed Martin, a US aerospace and defense group with a market cap of about $124.2b, designs and builds combat aircraft like the F-35 along with a wide range of military technology systems for governments in Europe, Asia, the Middle East, and other regions.

West Texas Intermediate crude futures on the New York market closed lower on Friday, September 18, with the October contract falling $1.61, or 1.58%, to settle at $100.30 a barrel, after China acted on a request from Saudi Arabia by urging Iran to limit Houthi rebel attacks on Saudi oil infrastructure, easing some concerns about risks to key Middle East oil export routes. Meanwhile, the November Brent crude contract fell $0.95, or 0.91%, to settle at $103.87 a barrel. Data from AAA showed U.S. retail diesel prices at $6.45 a gallon, a record high, and IIR Energy estimated that U.S. refining capacity in operation is likely to fall by 371,000 barrels per day next week. JPMorgan said that for the first time since the U.S.-Israeli war with Iran began in February, the bank has no clear fundamental view on the oil market. The Strait of Hormuz remains largely blocked, with only four cargo ships passing through on Thursday, compared with a 10-day average of about 16 vessels. Oil prices had earlier surged close to four-month highs after crude loadings at Saudi Arabia's Yanbu export terminal were suspended, with Saudi Aramco telling at least two European refining customers that they would not receive crude deliveries next month after the East-West pipeline was damaged in an attack. Three pumping stations serving the pipeline were damaged, one more than previously estimated, and Saudi Arabia is racing to restore the East-West pipeline's transport capacity to about half within the next few days. The United States and Iran have held no further peace talks since a temporary agreement reached in June collapsed, and the U.S. State Department said the war issue will be raised at next week's United Nations General Assembly meeting, which an Iranian delegation is scheduled to attend.