Saudi Arabia in March 2026: the most important developments in economy
Saudi Arabia's economy in March 2026 was dominated by the closure of the Strait of Hormuz during the war involving Iran and the United States. From 2 March, attacks in the Persian Gulf, including drone strikes attributed to Iran, disrupted energy and shipping. Saudi Aramco shut its Ras Tanura refinery, Qatar halted liquefied natural gas production, and major insurers stopped war-risk cover for ships. As traffic through the strait collapsed and storage filled, Saudi Arabia began cutting oil production at several fields on 9 March, and Aramco offered crude in rare spot tenders. Aramco warned of a severe impact on the oil market if the strait stayed closed. Oil prices reached their highest level since 2023 in early March and rose above $115 a barrel on 19 March after attacks on energy infrastructure across the region.
Saudi Arabia turned to the Red Sea. Aramco increased shipments through the East-West Pipeline to Red Sea ports, and the port of Yanbu resumed oil loadings. By 18 March the Ras Tanura refinery had restarted, Red Sea exports were set to reach nearly 4 million barrels per day, and half of the kingdom's export volume had been revived through the route bypassing Hormuz. Aramco nonetheless reduced crude supplies to Asian customers for a second consecutive month in April. Egypt and Saudi Arabia announced a new land-sea trade bridge.
OPEC+ agreed on 1 March to raise oil production by 206,000 barrels per day from April, more than expected, in a statement that did not address the crisis. Iraq's output fell by 70% by 9 March. On 18 March Iran struck an energy hub in Qatar and targeted Saudi Arabia after a major gas field was hit, and on 19 March Saudi Arabia warned Iran of possible 'military actions'.
Shipping companies including Maersk suspended bookings for the Persian Gulf, Thailand banned petroleum exports, and Sri Lanka negotiated emergency oil purchases with India and China.
by WorldBrief & Maksim Micheliov | AI-generated summary
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