Saudi Arabia’s stock market led declines across the Gulf as falling oil prices weighed on investor sentiment and dragged energy-heavy indices lower.

The Tadawul market closed down after crude prices retreated in global trading, prompting renewed caution among investors closely watching the outlook for energy demand and supply balances.

Shares in major petrochemical and energy-related companies were among the biggest drags on the market, reflecting the central role of oil revenues in the Saudi economy and corporate earnings.

Other Gulf markets also moved lower, though losses were generally more muted than in Riyadh, as regional bourses reacted to the same external pressures.

Market participants pointed to oil price movements, global interest rate expectations and broader risk appetite as key drivers of the session’s performance.

Analysts noted that while short-term volatility remains tied to energy markets, Saudi Arabia’s longer-term equity outlook continues to be supported by economic diversification efforts, large-scale investment projects and steady domestic liquidity.

Investors are now expected to monitor oil price trends and upcoming economic data for signals on market direction in the days ahead.