Saudi Arabia Maintains Strong Fiscal Position Amid Regional Turmoil

Saudi Arabia's finance ministry reaffirms the kingdom's robust fiscal health despite regional unrest following the U.S.-Israeli conflict with Iran. Oil prices have spiked due to disruptions, but Saudi Arabia's export routes through the Red Sea provide resilience. The nation's budget deficit rose in 2025 amidst a decline in oil revenues.

Saudi Arabia's fiscal health remains robust despite ongoing regional turmoil stemming from the U.S.-Israeli conflict with Iran, according to the kingdom's finance ministry. The ministry highlighted Saudi Arabia's continued normal economic activity and access to multiple export routes, including the strategic Red Sea.

Despite Iran's escalating strikes, which have disrupted hydrocarbon exports and affected oil prices, Saudi Arabia remains less impacted compared to other Gulf nations. Oil prices have surged by 20% since the conflict began, affecting outputs, including at key sites like Saudi Aramco's largest domestic refinery.

While acknowledging increased energy market responses, the finance ministry underscored the kingdom's resilient export infrastructure. The fiscal year 2025 saw a budget deficit exceeding forecasts, mainly due to a 20% drop in oil revenues from the previous year, emphasizing the need for strategic economic monitoring.

(With inputs from agencies.)