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Ukraine Conflict Day 1: Gold Up; Oil breaches $100; Cryptos sinking; Rouble suspended

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Updated 25 February 2022
Arab News
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Ukraine Conflict Day 1: Gold Up; Oil breaches $100; Cryptos sinking; Rouble suspended

  • Putin orders military operations in Ukraine
  • Brent and WTI trades at the highest level in 8 years
  • Bitcoin trades around $35,000
Updated 25 February 2022
Arab News

RIYADH: As Russia officially launched military actions against Ukraine, oil prices soared on Thursday with Brent and US benchmark crude WTI both surging at the highest levels since 2014.

Brent crude rose to as much as $105.13 a barrel, up 8.56 percent. US WTI crude futures jumped $7.6 to reach $99.7 a barrel. At one point, WTI was elevated to $100 a barrel. 

Cryptocurrencies —Bitcoin and Ether — sank sinking as Russia moved troops into Ukraine, sparking concerns that a war in Europe could disrupt global energy supplies.

Russia is the world’s second-largest oil producer, which mainly sells crude to European refineries, and is the largest supplier of natural gas to Europe, providing about 35 percent of its supply.

At least three major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases on Thursday, four trading sources said according to Reuters. 

Shipping group Maersk has halted all port calls in Ukraine until the end of February as a consequence of the conflict, a company spokesperson said on Thursday.

Russian President Vladimir Putin authorized a military operation in eastern Ukraine on Thursday in what could be the start of war in Europe over Russia’s demands for an end to NATO’s eastward expansion.

Here is how the invasion is affecting the markets and trading across the globe.

Rouble trading suspended

The rouble plunged to its lowest since early 2016 on Thursday after President Vladimir Putin ordered Russian forces to invade Ukraine, a move which led the Moscow Exchange to suspend trading.

Russian forces fired missiles at several Ukrainian cities and landed troops on its south coast on Thursday, officials and media said, after Putin authorised what he called a special military operation in the east.

The rouble has slumped 3.6 percent against the dollar to 84.0750, minutes after opening at 0400 GMT and slid 3.9 percent to a record low 95.2425 versus the euro, before trading was swiftly halted.

"Trading on all markets has been suspended. The resumption will be announced later," MOEX Group, which runs the Moscow Exchange, said in a statement at 0452 GMT. 

Markets

Dow futures lost nearly 700 points on Thursday, by 2 percent. Nasdaq futures dropped by 2.7 percent.

Bharat Petroleum, Petronet fall up to 6 percent as Brent hits $100 mark.

London-listed Russian companies plummet. Sberbank has lost 75 percent and VTB fell almost 22 percent. Rosneft is down 23 percent, while Gazprom has tumbled nearly 36 percent.

Aluminum prices in London hit a record high, as investors worried about supplies from Russia and a negative impact on production due to high energy prices. Russia produces over 6 percent of the world's aluminum.

Banks

Banks with big operations in Russia are facing setbacks.

An index of European banking stocks was down 6.1 percent before midday GMT, steeper than a 4 percent fall in the Euro Stoxx index.

Banks with significant operations in Russia were particularly hard hit, with Austria's Raiffeisen Bank International down 16 percent and Societe Generale losing 8.6 percent.

Shares in UniCredit, whose Russian arm is one of the largest lenders in the country, fell as much as 9 percent, before triggering an automatic trading suspension.

Cryptocurrency

Cyrptocurrency markets saw a sell-off, pushing Bitcoin down 7.8 percent to $35,084, reaching its lowest prices since July 20, when its price fell below $30,000, according to data collected by the firm CoinGecko.

Ethereum, the second largest crypto by market value, fell 9.7 percent to $2,396.93, its lowest price since July 19, when it fell to $1,824.93.

 

 

 

 

Gold Up

Gold prices on Thursday jumped over 2 percent to their highest in more than a year as investors rushed to safe havens after Russian forces invaded Ukraine in what could be the start of war in Europe.

Spot gold jumped 1.9 percent to $1,943.86 per ounce by 0428 GMT, its highest level since early Jan. 2021. US gold futures climbed 2 percent to $1,949.20.

Gold has risen about 8 percent in February so far and is set for its best monthly gain since July 2020.

Spot silver gained 1.6 percent to $24.91 per ounce, platinum rose 0.5 percent to $1,097.01 and palladium jumped 2 percent to $2,530.42.

 

Anaylsts Reactions

ING: “Russia’s announcement of a special military operation into Ukraine has pushed Brent to the $100/bbl mark,” said Warren Patterson, head of ING’s commodity research, adding that the oil market will nervously be awaiting what further action Western nations take against Russia.

“This growing uncertainty during a time when the oil market is already tight does leave it vulnerable, and so prices are likely to remain volatile and elevated,” he added.

Western nations and Japan on Tuesday punished Russia with new sanctions for ordering troops into separatist regions of eastern Ukraine and threatened to go further if Moscow launched an all-out invasion of its neighbor. So far, there are no sanctions on energy trade yet.

Japan and Australia said on Thursday they were prepared to tap their oil reserves, together with other International Energy Agency member countries, if global supplies were hit by hostilities in Ukraine.
 

OANDA: “One factor that could act as a temporary brake on prices is the Iran nuclear deal with rumors swirling around that a new agreement could be announced, possibly as early as this week,” said Jeffrey Halley, senior market analyst at OANDA.

“However Ukraine fears, and their wider ramifications will continue to support oil prices which remain a solid buy on dips.”

“Gold is coming back into its own as a haven asset and I do not rule out new all-time highs in prices in the weeks ahead,” said Jeffrey Halley, a senior market analyst at OANDA in a note.

Global stocks and US bond yields dived, while the dollar and oil prices rocketed higher.
 

City Index: “Any sanctions the West puts in place aren’t really going to affect Russia in the way the West is hoping ... the West is on the back foot here and that’s another good reason why gold is rising because it’s a true risk-off environment,” said Matt Simpson, senior market analyst at City Index.

 

Other factors affecting oil 

The US and Iran have been engaged in indirect nuclear talks in Vienna, in which a deal could lead to the removal of sanctions on Iranian oil sales and increase global supply.

Iran on Wednesday however urged Western powers to be “realistic” in talks to revive the 2015 nuclear deal, and said its top negotiator was returning to Tehran for consultations, suggesting a breakthrough in its discussions is not imminent.

Additionally, US crude stockpiles rose 6 million barrels last week while distillate stocks fell, according to market sources who were citing American Petroleum Institute figures late on Tuesday.

Ahead of government data on Thursday, analysts forecast a 400,000-barrel build in crude and a drawdown in fuel stockpiles.

Gasoline inventories rose by 427,000 barrels and distillates stockpiles fell by 985,000 barrels, the API data showed according to the sources, who spoke on condition of anonymity.

 

Topics: energy Oil

Where the money is flowing: AI, agritech, and fintech set to lead

Updated 5 sec ago
Nour El-Shaeri
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Where the money is flowing: AI, agritech, and fintech set to lead

Updated 5 sec ago
Nour El-Shaeri

RIYADH: Saudi Arabia’s venture capital ecosystem is entering a pivotal phase of growth, fueled by a surge in domestic and international investment targeting sectors aligned with the Kingdom’s Vision 2030.

Agriculture tech, fintech, artificial intelligence, and clean energy are emerging as key pillars of this transformation, driven by regulatory reforms, demographic shifts, and a rising global investor appetite.

The country’s ambition to become a regional innovation hub is drawing sustained capital inflows, placing it at the center of the broader emerging venture market investment narrative.

Domestic ambition shapes sectoral disposition

Said Murad, senior partner at investment firm Global Ventures, cited Saudi Arabia’s high food import dependency and its ambitions to boost domestic production as key in drawing funds to the Kingdom.

“Agritech and climate-related technologies will certainly contribute to the next phase of investment growth,” he told Arab News in an interview.

Complementing this trend, Philip Bahoshy, CEO of MAGNiTT, pointed to fintech, AI, clean energy, logistics, and advanced manufacturing as areas expected to dominate future funding.

“These sectors align with Vision 2030’s push for economic diversification and digital transformation,” he told Arab News, with health tech and deep tech also gaining traction due to increasing research and development support and regulatory tailwinds.

Philip Bahoshy, CEO of MAGNiTT. Supplied

AI, in particular, is emerging as a dominant investment theme in the region. According to MAGNiTT’s 2025 predictions, the sector is set to double its share of venture capital funding in emerging venture markets this year, following a surge of high-profile deals in 2024.

“AI was the main driver of investment activity both in the private and public markets in the US and other mature markets in 2024,” the platform noted, referencing data from PitchBook.

In the first nine months of 2024, AI accounted for 41.3 percent of US venture capital funding. In Saudi Arabia, this momentum is reflected in deals such as Intelmatix’s $20 million Series A round and Amazon Web Services’s planned data center investment, both signaling the Kingdom’s rising stake in the global AI landscape.

MAGNiTT also cited broader geopolitical and commercial developments in the AI space, including chip export agreements, as indicators of the sector’s rising importance in the region.

“Based on our proprietary data, we expect AI funding to double in 2025 due to increased investor attention to innovative AI startups,” the company stated.

Beyond AI, Global Ventures’ investment in Iyris, an agritech company spun out of King Abdullah University of Science and Technology, illustrates the potential of local innovation to address long-standing structural challenges.

“Iyris is positively disrupting agricultural practices for mid-to-low-tech farmers, particularly in hot climates,” Murad said.

The startup launched the National Food Production Initiative in 2023, partnering with SABIC and Red Sea Global to establish a sustainable farming project in Bada, Saudi Arabia, aimed at regenerating unproductive land and enhancing food security.

Fintech remains another strong area of interest, supported by a digitally connected population and a push toward financial inclusion.

“With 98 percent internet penetration and 97 percent smartphone adoption among the 18-to-78-year age group, the Kingdom has one of the world’s most digitally enabled populations,” Murad said.

He views this as a key enabler for innovation in financial services, both consumer-facing and enterprise-driven.

Focused sectors, broad appeal

Capital inflows into Saudi Arabia are being driven not only by sector performance but also by global institutional interest in the region.

According to MAGNiTT, firms including BlackRock, Golden Gate Ventures, and Polen Capital have already established offices or acquired licenses in the Kingdom, the UAE, or Qatar.

Others, including General Catalyst and the BRICS Investment Fund, have made their investment debuts or launched dedicated MENA-focused funds.

“In 2025, we expect even more investors and asset managers to set up offices in the EVM regions, particularly Saudi Arabia and the UAE,” MAGNiTT stated, attributing this to the region’s “friendly business-enabling environment.”

Said Murad, senior partner at investment firm Global Ventures. Supplied

Deal flow in the Kingdom has grown across all funding stages. “Saudi Arabia saw a surge in pre-seed and seed-stage funding,” said Murad, noting that demand for later-stage capital is increasing as startups validate their models and seek international expansion.

Supporting this trajectory is a growing exit pipeline. In 2024, Saudi Arabia completed 42 initial public offerings, ranking seventh globally in capital raised.

“This growing pipeline of exits signals the increasing maturity of the country’s capital markets and reinforces the long-term viability of its venture ecosystem,” Murad added.

As international capital intensifies, local venture firms are adapting their strategies to remain competitive.

“Regional players active in the market will understand local nuances, ultimately providing a competitive advantage,” Murad said.

He emphasized that investors offering operational support and showcasing portfolio success stories will be best positioned to attract international limited partners.

The Kingdom’s regulatory environment is increasingly seen as a strength in the region’s venture capital narrative.

“Government initiatives and the regulatory framework are geared to venture capital firms investing in startups in a secure, forward-thinking, and robust environment,” Murad said.

Still, he cautioned that strong business fundamentals remain essential. “The need for entrepreneurs to have strong, sustainable business models with good unit economics is as necessary as ever,” said the Global Ventures partner.

Despite global uncertainties, Saudi entrepreneurs may be better equipped than most to navigate a challenging macroeconomic environment.

“At Global Ventures, we refer to the ‘adversity advantage’— a natural upside for regional entrepreneurs who are used to working with, and around, resource scarcity,” Murad said.

“This has empowered them, by design, to build businesses more resilient and adaptable to challenges,” he added.

Topics: VENTURE CAPITAL artificial intelligence (AI) Agritech

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Oil Updates — prices fall as US delays decision on direct Iran involvement

Updated 37 min 26 sec ago
Reuters
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Oil Updates — prices fall as US delays decision on direct Iran involvement

Updated 37 min 26 sec ago
Reuters

SINGAPORE: Oil prices fell on Friday after the White House delayed a decision on US involvement in the Israel-Iran conflict, but remained on course for a third consecutive weekly rise.

Brent crude futures fell $2, or 2.5 percent, to $76.85 a barrel by 9:48 a.m. Saudi time but still looked set to gain more than 3 percent on the week.

US West Texas Intermediate crude for July — which did not settle on Thursday as it was a US holiday and expires on Friday — was down 14 cents, or 0.2 percent, to $75.

The more liquid August contract was up 0.3 percent, or 19 cents, to $73.69.

On Thursday prices jumped almost 3 percent after Israel bombed nuclear targets in Iran and Iran fired missiles and drones at Israel. The week-old war between Israel and Iran showed no signs of either side backing down. Iran is OPEC’s third-largest producer.

Brent futures trimmed previous session gains following the White House’s comments that President Donald Trump would decide whether the US will get involved in the Israel-Iran conflict in the next two weeks.

“Oil prices surged amid fears of increased US involvement in Israel’s conflict with Iran. However, the White House press secretary later suggested there was still time for de-escalation,” said Phil Flynn, analyst at the Price Futures Group.

“The ‘two-week deadline’ is a tactic Trump has used in other key decisions. Often these deadlines expire without concrete action, ... which would see the crude oil price remain elevated and potentially build on recent gains,” said Tony Sycamore, analyst at IG. 

Emril Jamil, oil research analyst at LSEG, said the “unwavering determination” of the Organization of Petroleum Exporting Countries and its allies to increase output “may have added jitters to the market.”

Topics: oil updates oil prices

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OPEC+ has proven to be oil markets’ central bank, says Saudi energy minister

Updated 19 June 2025
Nadin Hassan
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OPEC+ has proven to be oil markets’ central bank, says Saudi energy minister

Updated 19 June 2025
Nadin Hassan

RIYADH: OPEC+ has proven to be the “central bank” and regulator of the global oil market, providing much-needed stability, Saudi Arabia’s energy minister said.

Speaking at the annual St. Petersburg International Economic Forum in Russia, Prince Abdulaziz bin Salman praised the alliance’s role in balancing oil markets amid global economic uncertainties.

“I would have to say that OPEC+ had proven to be an instrument that if it wasn’t invented by us and Russia and our colleagues, it should have been invented a long time ago because this is what OPEC+ had achieved in terms of bringing stability to the market and had proven that it is the central bank and the regulator of oil markets,” the energy minister said.

Prince Abdulaziz also highlighted the ongoing partnership between Saudi Arabia and Russia through the Saudi-Russian Joint Committee, noting plans for Russian Deputy Prime Minister Alexander Novak to visit the Kingdom later this year with a high-level business delegation.

“I’m looking forward to host Alexander — the co-chair of our joint committee — to Saudi Arabia this year, with the biggest, most sizable business community participation,” he said.

Prince Abdulaziz emphasized that the collaboration seeks to deepen bilateral economic ties and foster diversified investment opportunities.

“We have a lot to showcase that bonding together. It will allow us to have a much more diversified relationship, and we are, as a government, working together to provide the right environment for those who want to invest in Saudi Arabia or in Russia or in any type or form of joint venturing that we should facilitate that and ensure that the investment environment is congenial for it to happen,” he added.

The minister described the energy alliance as a flexible mechanism responsive to changing global conditions, reaffirming Saudi Arabia’s commitment to cooperation with partners to maintain market stability.

Acknowledging the challenges facing Russia, Prince Abdulaziz noted the Kingdom’s support amid external restrictions.

“It’s been a challenging time what Russia is going through, but we have shown a great deal of understanding of the situation, and we’re trying to maneuver with the restrictions that are existing today,” he said.

“That has been the discharge of our leadership willingness to accommodate with this current situation and hopefully helping to support Russia in mitigating these exterior most daunting issues.”

On whether Saudi Arabia and Russia would compensate for any loss of Iranian crude supplies, the minister stressed that such scenarios are hypothetical and that OPEC+ decisions are collective.

“You give me a question that is not evidently seen happening, I don’t have an answer for you. Again, we only react to realities. But if anybody gives a question that is not relating to the reality today, I fail to see where we could predict things and how we would relate to it,” he said.

The minister clarified that OPEC+ consists of 22 member states and is not dominated by Saudi Arabia and Russia alone. A core group of eight countries is tasked with engaging the full membership to ensure coordinated responses to market changes.

“To respond to a hypothetical question by giving a hypothetical answer, which none of us two here have the right to speak on behalf of everybody without knowing their opinion, is too much of an ask,” he added.

He concluded by highlighting OPEC+’s reputation as a reliable and adaptive organization.

“What we know and what Alexander was saying just a while ago is that we have, as OPEC even before, an OPEC+ attending to so many circumstances since its first, it was in sequence, even inception, that we have been a reliable organization, a serious organization, an effective organization, and attentive to circumstances when they prevail,” he said.

Topics: OPEC OPEC+

Closing Bell: Saudi main index rises to close at 10,610 

Updated 19 June 2025
Reem Walid
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Closing Bell: Saudi main index rises to close at 10,610 

Updated 19 June 2025
Reem Walid

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 19.58 points, or 0.18 percent, to close at 10,610.71.   

The total trading turnover of the benchmark index was SR6.4 billion ($1.7 billion), as 116 of the stocks advanced and 115 retreated.    

The Kingdom’s parallel market Nomu lost 28.01 points, or 0.11 percent, to close at 26,175.83. This came as 35 of the listed stocks advanced while 41 retreated.    

The MSCI Tadawul Index lost 0.54 points, or 0.04 percent, to close at 1,367.14.     

The best-performing stock of the day was Alistithmar AREIC Diversified REIT Fund, whose share price surged 9.97 percent to SR7.50. 

Seera Group Holding also recorded strong gains, with its share price rising 7.99 percent to SR23.80, while Banan Real Estate Co. climbed 7.14 percent to close at SR4.50. 

Southern Province Cement Co. recorded the most significant drop, falling 5.19 percent to SR27.40. Ataa Educational Co. also saw its stock prices fall 3.43 percent to SR59.10. 

Leejam Sports Co. also saw its stock prices decline 3.01 percent to SR116.

On the announcements front, Advance International Communications and Technology said it has completed the conversion of one of its branches into an independent limited liability company under the name Innovation Passage Technology Co.

According to a statement on Tadawul, the move is part of the company’s strategy to restructure its operations by separating the wholesale business sector. The new entity will take over all wholesale functions and operations. The company stated that the transformation is not expected to have a significant financial impact and that any further updates will be announced as they arise. 

Alujain Corp. announced that its board of directors has approved the distribution of SR51.9 million in cash dividends for the second quarter of 2025.

A bourse filing revealed that the number of shares eligible for dividends is 69.2 million, with the dividend per share set at SR0.75. The dividend represents 7.5 percent of the share’s par value. 

Alujain shares closed the session up 2.74 percent at SR35.

United Cooperative Assurance Co. announced the signing of a memorandum of understanding with Arabia Insurance Cooperative Co. to evaluate a potential merger.

According to a Tadawul filing, both parties will conduct technical, financial, tax, legal, and actuarial due diligence, and will enter into non-binding discussions regarding the terms and conditions of the proposed transaction.  

United Cooperative Assurance shares closed at SR6.70, up 0.75 percent. 

Topics: Closing Bell Saudi Stock Exchange (Tadawul) Saudi exchange

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Saudi Arabia’s PIF launches company to build and run Expo 2030

Updated 19 June 2025
MOHAMMED AL-KINANI
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Saudi Arabia’s PIF launches company to build and run Expo 2030

  • New firm to turn site into multicultural hub post-event
Updated 19 June 2025
MOHAMMED AL-KINANI

RIYADH: Saudi Arabia’s Public Investment Fund has launched Expo 2030 Riyadh Co., a wholly owned entity tasked with developing, managing, and operating the infrastructure and programming for the Kingdom’s first World Expo.

During its development phases, the project is projected to contribute $64 billion to Saudi Arabia’s gross domestic product and generate around 171,000 direct and indirect jobs. Once operational, it is expected to add $5.6 billion to the national economy.

According to an official release on Thursday, the newly established company will play a pivotal role not only in executing the large-scale event but also in preserving its long-term legacy.

Known as ERC, the company will fast-track operations to meet its ambitious mandate. It plans to collaborate with both local and international private sector partners to deliver on construction, cultural programming, and event management goals.

“ERC benefits from PIF’s diverse local and global ecosystem and the establishment of the company aligns with PIF’s local real estate strategy, which drives economic transformation and diversification, advancing urban innovation and enhancing quality of life, driven by the ambitious goals of Saudi Vision 2030,” said Saad Al-proud, head of PIF’s Local Real Estate Investment Division.

Covering an expansive 6 million sq. m, the Expo 2030 site will be one of the largest World Expo venues ever built. Strategically located north of Riyadh near the upcoming King Salman International Airport, it will offer direct access to major city landmarks.

Set to run from Oct. 1, 2030 to March 31, 2031, Expo 2030 Riyadh is expected to draw over 40 million visits. Following the event, ERC aims to repurpose the gated expo area into a “global village” — a multicultural destination featuring retail, food  and beverages, and premium residential offerings, all aligned with the Kingdom’s push toward sustainable tourism and innovation.

Participating nations will have the opportunity to construct permanent pavilions, enabling a lasting impact beyond the event itself and encouraging long-term investment and business ties.

PIF emphasized that the initiative reflects its broader strategy to drive economic diversification while securing sustainable financial returns.

The fund remains at the forefront of delivering Saudi Arabia’s transformative giga-projects and real estate ventures, reshaping the national landscape and bolstering the Kingdom’s global positioning.

Riyadh secured the rights to host Expo 2030 in November 2024, winning the international vote in the first round — further solidifying its reputation as a fast-evolving capital that blends connectivity, sustainability, and high quality of life at scale.

Topics: SaudiVision2030 Riyadh Expo 2030 PIF

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