Media: Middle East tensions cost Saudi Arabia billions in revenue

Saudi Arabia has reportedly suffered economic losses exceeding $10 billion due to reduced revenues and increased expenditures following the US military operation against Iran, according to the Wall Street Journal.

The newspaper reports that the losses are largely driven by shipping restrictions in the Strait of Hormuz, which have negatively affected the kingdom’s oil export volumes.

Additional damages stem from military destruction caused by Iranian retaliatory strikes, as well as the cancellation of major international events, including the Formula 1 Grand Prix.

In response, Saudi authorities and state-owned companies are reassessing major infrastructure projects, including skyscraper construction, to reduce current expenditures.

Officials are also considering an accelerated increase in the defence budget, which would require the reallocation of funds.

By Bakhtiyar Abbasov