Saudi Arabia's economy has contracted 4.8% year-on-year in the second quarter, according to flash estimates, highlighting the kingdom's continued dependence on oil revenues despite years of economic diversification efforts.

The decline was driven primarily by a 24.7% drop in oil-related activities, while non-oil sectors provided only limited support. The latest figures come as geopolitical tensions across West Asia continue to influence oil production, energy markets, and global supply chains.

Although Saudi Arabia's Vision 2030 aims to reduce reliance on hydrocarbons, the latest GDP data underscores the challenges of transforming an economy still heavily tied to crude oil exports.

Saudi Arabia's Economy Shrinks 4.8% as Oil Slump and West Asia Tensions Weigh on Growth

Europe’s energy market is facing renewed pressure as gas prices surge amid an intense global LNG competition. European LNG futures climbed to around 62 euros per megawatt-hour, reaching their highest level since earlier market turbulence triggered by the Iran-Israel conflict. Prices have jumped nearly 50% from June levels, when they were trading in the 40–42 euro range.

Economic gloom hits UK's Gen Z | World Business Watch 

Iran has effectively turned the Strait of Hormuz into a strategic lever by restricting, rather than fully blocking, maritime traffic, creating a severe global oil supply crunch. By utilizing kinetic strikes, mines, and selective passage (allowing 90 ships but restricting others), Iran is forcing higher prices and controlling regional energy flow, prompting panic buying in Asia. 


Iran War: Strait of Hormuz Disruption Sends Energy Markets into Chaos

Chinese energy giant SINOPEC is setting its sights on Sri Lanka's energy market. They plan to build a $4.5 billion refinery, the island nation's largest foreign investment ever. This would be SINOPEC's first wholly-owned overseas refinery. However, Sri Lanka wants the refinery to produce fuel for domestic consumption, while SINOPEC sees higher profits in selling it abroad.

China and India vie for influence in Sri Lanka

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