Saudi Arabia’s benchmark share index closed sharply lower on Sunday, with the Tadawul All Share Index (TASI) losing roughly half a percent as faltering oil prices and uncertain global economic signals weighed on investor sentiment.

The retreat comes despite hopes of a forthcoming U.S. interest-rate cut that had initially buoyed markets.

Major companies across key sectors dragged the market down.

Saudi Arabian Mining Company — a bellwether for the Kingdom’s push into non-oil industries — fell over two percent, while Saudi Aramco, the oil giant whose performance often sets the tone for the broader market, slipped nearly half a percent.

Banking and petrochemical stocks similarly registered losses, reflecting broader risk aversion.

Analysts point to the slump in crude-oil futures as a central catalyst for the downturn, underscoring the continuing sensitivity of Gulf markets to energy-price fluctuations.

At the same time, global investors remain cautious as shifting supply dynamics in the oil market and geopolitics add uncertainty.

Some market watchers had pinned hopes on a possible interest-rate reduction by the Federal Reserve of the United States, but those expectations have not yet delivered a sustained rebound in regional equities.

The result leaves investors recalibrating risk in a market still deeply tied to energy-sector fortunes and global demand.

For now, the decline serves as a stark reminder that economic diversification efforts in Saudi Arabia — though long-term strategic goals — remain vulnerable to volatility in global oil markets and external macroeconomic conditions.