Saudi Aramco shares drop
Saudi Aramco shares hit the lowest point since the oil giant in the world marked its market debut on December 11.
On Wednesday, shares started trading on the local stock exchange Saudi Tadawul at 34 riyals ($9.06) which was below 12% from their peak of 38.70 riyals, as reported by CNBC. Notably, the Saudi stocks dropped almost 1% by mid-morning.
This was heavily impacted by the current US-Iran escalation. Iran fired more than a dozen ballistic missiles targeting military bases housing U.S. troops in Iraq overnight. This was a response of Iran to the US killing of Qasem Soleimani, who was one of the top Iranian military commanders. As the tension between two countries surge, the world’s most highly valued company bounced 1.7% Sunday and as much as 1.2% Monday and as of now, Aramco is witnessing its market value going down by around $200 billion since its peak.
However, the oil company’s stocks are still trading a bit higher than its initial trading price.
“If the Iranians want to disrupt oil supply, they will shut down that Strait straight away and that will send oil prices through the roof, and that will trigger a response not only from the Saudis, but will have to trigger a response from the U.S.,” James Eginton, an analyst at Tribeca Investment Partners, told CNBC on Wednesday.
(Image source: Maxim Shemetov | Reuters)