Saudi economy suffers biggest contraction since pandemic as Iran war hits oil exports | The National

Traffic through the Strait of Hormuz, a vital shipping route for the region's oil and gas, has largely been blocked since the outbreak of war on February 28. Getty ImagesInfoOil sector's 24.7 per cent plunge drives April-June contraction

Saudi Arabia's economy contracted 4.8 per cent annually in the second quarter, its sharpest decline since the Covid-19 pandemic.

A 24.7 per cent plunge in the oil sector drove the contraction, reversing 2.9 per cent growth recorded in the first quarter.

The US-Iran war and Tehran's retaliatory strikes on Gulf energy infrastructure severely disrupted hydrocarbon production across the region.

The closure of the Strait of Hormuz has critically restricted energy exports, with the kingdom facing additional challenges exporting via Bab Al Mandeb.