US President Donald Trump announced on Tuesday that the US would soon reveal its response to the attack on the American embassy in Riyadh and the deaths of military personnel in the Iran conflict. The statement came amid heightened tensions between the US and Iran, with Saudi Arabia as a key regional ally. The attack on the embassy, attributed to Iran-aligned groups, has escalated geopolitical risks in the Middle East, raising concerns about potential military retaliation or economic sanctions. The situation could significantly impact global markets, particularly oil prices and the US dollar. A prolonged conflict might disrupt OPEC+ supply dynamics, pushing crude prices higher, while increased defense spending could weaken the USD against safe-haven assets like gold. Traders should monitor statements from the White House and OPEC meetings for clues about policy shifts. For Gulf investors, the crisis underscores the fragility of regional security and its spillover effects on financial markets. Saudi Arabia’s stock market (Tadawul) and energy sector equities may face volatility, while the USD/SAR exchange rate could fluctuate due to geopolitical uncertainty. Key indicators to watch include oil price movements, central bank interventions, and diplomatic developments between the US and Iran.

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