Tadawul Shares End Monday Subdued; Saudi Arabia's Inflation Ticks Up in May
The Tadawul All Share Index closed Monday trading muted at 0.08% in the red as investors assessed Saudi Arabia's latest economic releases and the updates on the US-Iran conflict.Dominating headlines all around the world is the preliminary pact that the US and Iran agreed to sign in Switzerland on Friday. The deal would reopen the Strait of Hormuz, as well as stop "military operations on all fronts, including in Lebanon", among other terms."Oil prices slumped on Monday, with NYMEX WTI around $80/bbl and Brent tumbling to around $84/bbl, after the US announced an interim deal with Iran and potential resumption of oil flows through the Strait of Hormuz from Friday, alongside the removal of the US naval blockade on Iranian shipments," ING said. "Still, restarting infrastructure and logistics flows could take time, while some shipping operators may remain cautious about returning to the Strait in the near term. Meanwhile, inventories and strategic stockpiles will need to be rebuilt after recent disruptions, which should keep prices supported even as flows gradually resume."Back at home, the kingdom's annual inflation rate rose year over year to 1.8% in May from 1.7% in the prior month. On a monthly basis, the index saw a consistent growth of 0.2%.Saudi Arabia's wholesale prices had a 4.6% growth in May. Meanwhile, the country's producer price index data showed a 9.1% year-over-year rise in April. Month over month, the index saw a 3.3% increase.On the corporate front, Malath Cooperative Insurance (SASE:8020) shares declined 0.94% at closing as it secured a one-year deal to organize, support, and deliver integrated insurance services for the National Housing Services Co.'s process of issuing work insurance products for latent defects policies.

