Saudi Arabia in July 2026: the most important developments in economy
Saudi Arabia's economy in July 2026 was shaped by oil output decisions and, later, by threats to shipping routes. On July 2 Saudi Arabia and OPEC+ announced a third consecutive monthly rise in production for August, and on July 5 delegates agreed on an increase of 188,000 barrels per day, as traffic through the Strait of Hormuz began to recover. Oil prices dropped on July 6, when Saudi Arabia made its deepest price cut in 26 years. Aramco ramped up crude exports through Hormuz and made spot sales from Ras Tanura. On July 7 sources said Saudi Arabia was considering expanding its East-West pipeline to the Red Sea, from 5 million to 7 million barrels per day. On July 13 OPEC cut its global demand forecast again. By July 29 OPEC was preparing to stop raising output targets.
The Red Sea became the main risk. On July 14 Iran signaled it could shut the Red Sea gateway, and on July 17 the petroleum minister said fuel prices would be fixed daily because of renewed hostilities in the Persian Gulf. On July 20 Yemen's Houthis announced a maritime embargo on Saudi Arabia and threatened to close the Bab el-Mandeb strait. Oil prices rose nearly 4% on July 22 after a tanker attack in the Red Sea and moved toward $100 a barrel on July 23. By July 29 Aramco's Jizan refinery remained shut after a Houthi strike, a drone strike had damaged an oil processing facility, and Aramco was considering new pricing for Asia.
The kingdom also continued its diversification. On July 17 it announced reforms opening new sectors to foreign investment. Jeddah launched the world's largest truck logistics zone on July 16. On July 22 the United States approved a nuclear deal allowing Saudi Arabia to enrich uranium, which critics said lacks major safeguards.
by WorldBrief & Maksim Micheliov | AI-generated summary
Click a day in the chart above for that day's brief.