Abstract

The Iran-Israel war is generating new global political and economic ramifications, and it is exposing the Kingdom of Saudi Arabia more than ever. However, as a regional economic and strategic power, Saudi Arabia must take stock of the gravity of the situation and formulate a policy that best serves its national interests. This paper discusses the war's impact on the Saudi economy and business environment (energy markets, logistical networks, investor confidence, and Vision 2030). The fighting is helping drive oil-price volatility, in part because overseas markets fear possible disruptions to the Strait of Hormuz. The effect has been on regional and international air and ocean routes and has also led to increased shipping prices, insurance and delivery delays. There are also security concerns and operational risk from threats to Gulf oil infrastructure. A better understanding of these issues could help policy makers, investors and business leaders to build economic resilience and protect long-term development goals.