$BTC The collapse in the main Saudi market intensified today, dropping by 1.68% and moving away from the 11,000-point level.
This drop comes amid escalating geopolitical tensions due to Washington's decision to allow its citizens to leave Bahrain and Kuwait amid fears of possible retaliation from Iran.
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President Donald Trump stated that he has become "less confident" in reaching a nuclear deal with Iran, which has diminished hopes for a diplomatic solution.
The White House warned that it would consider taking military action if negotiations fail, as the main deadline for response approaches this Thursday.
Meanwhile, the Iranian defense minister threatened that Tehran would target U.S. bases in the region if attacked. For its part, Israel stated that it is prepared to strike Iran if it persists with its nuclear weapons.
These developments added geopolitical risk premiums to crude oil prices, as investors fear that any conflict could disrupt shipping routes or oil infrastructure across the Gulf. This has led to declines in most Arab markets such as the Qatar, Muscat, Egypt, and Oman stock exchanges.
Despite the rise in oil prices due to these geopolitical concerns by more than 4% in yesterday's trading on Wednesday, this did not prevent Aramco's (2222) stock price from dropping, as the stock fell by 0.64% to 24.76 riyals per share. Americana stocks also dropped for the second consecutive day, declining to 2.13 riyals, down by 3.16%.