Aramco's value impacted by Yemen issues
The maritime blockade imposed on Saudi ships in the Red Sea via Yemen has caused significant disruptions to Saudi maritime transportation and trade. As a result, cargo handling at ports decreased by 40.8% within a month, while shipping and transportation costs increased due to increased risks to vessels and altered routes, especially when ships diverted around the Cape of Good Hope instead of passing through the Red Sea. These changes led to higher logistics and transportation expenses, which in turn caused increases in food prices and a decline in the market value of Aramco, estimated at approximately 246.8 billion riyals, due to a drop in stock prices. Data also showed an increase in the number of sealed and shipped containers despite a reduction in the number of ships, with Jeddah Port evolving into a major logistics hub to strengthen trade resilience. Additionally, Saudi reserve assets declined noticeably. Overall, the Red Sea has become more turbulent, complicating supply chains and significantly raising costs for consumers and the national economy.
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