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Tadawul Shares End Tuesday Lower Amid Houthis-declared Naval Blockade on Saudi Arabia

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The Tadawul All Share Index closed 0.40% in the red on Tuesday as Iran-aligned Houthis declared a naval blockade on Saudi maritime traffic in the Red Sea, threatening global energy supplies and trade in the Middle East.

Crude oil soared to $90.778 per barrel as traders balanced escalating conflict and volatility in the Middle East amid news of a potential 10-day ceasefire proposed by mediators to resume negotiations between Iran and the US.

"With the Gulf's primary maritime outlet largely closed, the market is increasingly dependent on Saudi Arabia's East-West pipeline and Red Sea terminals to maintain export flows. Any disruption at Bab el-Mandeb would therefore threaten not only Saudi shipments but one of the few remaining routes capable of compensating for the severe reduction in Hormuz traffic," Rystad Energy senior vice president and head of geopolitical analysis Jorge Leon commented. "If a ceasefire does not materialize and Hormuz remains largely closed while the Houthi threat to Red Sea shipping intensifies, the risk of a significant rebound in oil prices would be substantial."

At home, AlJazira Capital expects Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco, to report "steady" second-quarter results with net income expected to jump 39.7% year over year, while revenue is anticipated to rise 12.6%. The Saudi state-owned oil giant's shares declined 0.37% at close.

On the earnings front, Alinma Bank (SASE:1150), Al Rajhi Bank (SASE:1120), and the Saudi National Bank (SASE:1180) reported higher year-over-year attributable profit and total operations profit for the first half of 2026. Alinma Bank and Al Rajhi Bank's shares closed 4.43% and 1.84% in the red, respectively, while the Saudi National Bank ended trading 0.62% in the green.

Saudi Awwal Bank (SASE:1060), on the other hand, logged a higher net profit for the six months ended June 30, while total operations profit fell year over year. The Saudi Arabia-listed lender's shares fell 0.80% at closing.

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Update: Communication Services, Technology Help Lift Nasdaq and S&P 500; Crude Oil Mixed as Iran Ally Threatens Saudi Supply

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Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH