Saudi Arabia’s quarterly fiscal deficit shrank by nearly 75%, according to fresh government data, as a surge in global oil prices offset the economic drag from the ongoing conflict with Iran.
The improvement came after a bruising start to 2026. The kingdom posted a deficit of SAR 125.7 billion, roughly $33.5B, in the first quarter alone, the largest shortfall in nearly eight years. That single quarter consumed 76% of the government’s entire full-year deficit target before spring had even arrived.
How oil prices bailed out the budget
Saudi Arabia’s government revenues are overwhelmingly tied to crude oil, so when Brent prices surged past $90 per barrel, the fiscal math improved quickly.
Riyadh had built its 2026 budget around an oil price assumption of roughly $72 per barrel. The fiscal breakeven sits between $80 and $85 per barrel.
