Saudi Aramco shares have tumbled 10 percent in after Iran launched missiles against U.S. targets in Iraq on Wednesday in revenge for America’s assassination of its Army commander last week.
Saudi Aramco opened at 34 riyals ($9.06) on Tadawul Stock Exchange , its lowest since it began trading on December 11, 2019, but fell to $8.15 in intra-trade, putting the market value of the company at around $1.8 billion, down from a peak of $2.06 trillion on December 12.
The fall came after Iran launched more than a dozen ballistic missiles against military bases housing U.S. troops in Iraq overnight, as part of Tehran’s response to the U.S. killing of top Iranian military commander Qasem Soleimani last week.
The world’s most highly valued company fell 1.7percent Sunday and as much as 1.2percent Monday and has now seen its market value fall by around $200 billion since its peak.
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The oil behemoth’s listing was part of Crown Prince Mohammed bin Salman’s Vision 2030 program aimed at transforming the Saudi economy.
Escalating tensions in the Middle East have sent oil prices surging, with Brent crude trading up a further 1.1percent at $69 per barrel on Wednesday morning, while U.S. West Texas Intermediate (WTI) was up 0.8% at $63.2 a barrel.
Shares of oil companies in Europe have posted gains since Soleimani’s death amid fears of disruption to Middle Eastern oil supplies.
Aramco’s shares fell in the final couple of weeks of 2019 because reality kicked in among investors, but the recent weakness was caused by geopolitical tensions, Jason Tuvey, a senior emerging markets economist at Capital Economics tweeted.
In September, two Saudi Aramco oil facilities in Abqaiq and Khurais were severely damaged by drone strikes, with Riyadh suggesting Iranian culpability, which also sent oil prices soaring.
