Saudi Arabia's economic growth slowed sharply in the first quarter of 2026, as the war involving Iran weighed on oil production and exports.
Gross domestic product expanded 2.8% year-on-year in the January-March period, according to preliminary data from the General Authority for Statistics.
The figure marked the weakest quarterly growth since mid-2024 and was down from 5% in the previous quarter.
The oil sector grew 2.3% in the first quarter, slowing significantly from 10.8% in the final quarter of 2025.
Non-oil activity -- central to Saudi Arabia's Vision 2030 diversification strategy -- also lost momentum, expanding 2.8% compared with 4.3% in the previous quarter.
The data provide an early indication of the economic impact of the Iran war, which began on Feb. 28 and has disrupted energy flows across the Gulf.
Iran retaliated against US allies in the region, including strikes targeting energy infrastructure in Saudi Arabia, affecting production and exports.
The conflict has also effectively shut the Strait of Hormuz, a key global energy chokepoint through which around one-fifth of oil supplies normally pass.
Saudi Arabia has sought to offset the disruption by redirecting crude shipments via its East-West pipeline to the Red Sea port of Yanbu, allowing it to partly benefit from higher oil prices.
Oil prices climbed above $120 per barrel this week amid ongoing supply concerns.
The International Monetary Fund expects Saudi Arabia's economy to grow 3.1% this year after lowering its forecast from October.
The outlook could face further uncertainty following the United Arab Emirates' planned exit from OPEC on May 1, a move that may weaken the group's ability to manage oil supply through coordinated policy.
