Saudi Arabia Posts Biggest Deficit Since 2018 On Hormuz Closure

The widening fiscal deficit highlights the vulnerabilities in Saudi Arabia's economy, particularly its heavy reliance on oil revenues. The closure of a critical shipping route like the Strait of Hormuz not only disrupts exports but also raises questions about the effectiveness of the kingdom's diversification efforts. As spending on non-oil sectors rises, the challenge will be to balance this with the need for fiscal sustainability.