Saudi Oil Revenues Slump 23% as Hormuz Shutdown Squeezes Crude Exports

Saudi Arabia's oil money is shrinking fast. The Finance Ministry said Tuesday that crude revenues for the third quarter dropped 23% from the same period last year, landing at 16.5 billion riyals — roughly $4.4 billion. War-driven chaos in global oil shipping is leaving its mark on the kingdom's books.

The damage spreads beyond crude. Total budget revenues slid 4% year-over-year, settling at 259 billion riyals. Non-oil revenues climbed 20% annually, reaching 142.6 billion riyals — a bright spot Riyadh has spent years building as it tries to wean its economy off the pump.

The backdrop is a supply chain in upheaval. Global oil shipping has been disrupted since the US-Israeli war against Iran began on February 28. Iran's closure of the Strait of Hormuz, one of the world's most critical oil transit chokepoints, has strangled the flow of tankers through the Gulf.

The waterway itself remains a flashpoint. Iran's Islamic Revolutionary Guard Corps claimed Tuesday that its forces intercepted and destroyed two American Lucas drones over the coastal area of Bandar Khamir, and said three oil tankers on unauthorized routes exploded in the Strait of Hormuz after hitting naval mines, according to Breaking The News. The IRGC dismissed CENTCOM commander Admiral Brad Cooper's account of conditions there.

Meanwhile, President Donald Trump told Fox News on Tuesday that his administration has Iran "where we want" it, saying he could make a deal with Tehran or continue the military operation. He said the conflict "isn't really war" because the US is no longer actively attacking Iran, per Breaking The News.

For Saudi Arabia, the picture is blunt: oil still drives the budget, and turbulence around Hormuz hits the bottom line directly. The 20% jump in non-oil revenue offers some cover, but how long the Strait stays disrupted will shape how deep the next quarter's hole gets.