Saudi Arabia's stock market opened lower on Sunday after Yemen's Houthi movement claimed missile and drone strikes on "sensitive" targets in Riyadh, pulling sentiment down across Gulf bourses. Turkey has since offered Saudi Arabia military support under a trilateral defense pact, while Washington has resisted direct intervention against the Houthis.
Saudi Arabia's benchmark index fell 0.5% on Sunday, a day after the Houthis said they struck targets in Riyadh with missiles and drones. Flames and thick smoke were reported near the Saudi capital's main airport after authorities issued alerts warning of danger around the city.
The subdued mood spread beyond Saudi Arabia. In Qatar, the main index dropped 0.9%, pressured by a 3.7% slide in petrochemical producer Industries Qatar. Within the Saudi index, oil major Saudi Aramco fell 0.6% and Saudi National Bank, the country's largest lender by assets, slipped 0.5%.
Turkey offers military backing
Turkish Foreign Minister Hakan Fidan said on September 19 that Ankara stands ready to provide technical military support to Saudi Arabia as Houthi strikes escalate. The offer rests on the Mecca Joint Defence Agreement, a trilateral pact Turkey, Saudi Arabia, and Pakistan signed on August 7, which treats an attack on one signatory as an attack on all three.
Houthi attacks against Saudi Arabia have intensified since July 2026, when the group declared a naval blockade against Riyadh. Pakistan, the pact's third signatory, has said no military response discussions have taken place, reflecting its historic balancing act between Saudi Arabia and Iran.
Washington holds back
The clash has become another front in the wider conflict that followed US and Israeli strikes on Iran in late February, and President Trump has reportedly rejected Saudi requests for direct US military intervention against the Houthis. Meanwhile, China has privately urged Tehran to help restrain the Iran-aligned Houthis, following a Saudi appeal to Beijing, according to three Iranian sources familiar with the discussions.
The standoff adds to the geopolitical risk already weighing on Gulf markets, where Saudi and Qatari stock market benchmarks both fell on Sunday.
Sources: Investing.com, Crypto Briefing
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