REUTERS
Saudi Arabia's stock market crashed yesterday as nuclear sanctions on Iran were lifted, clearing the path for an all-out oil war between the Middle Eastern rivals, The Independent reported.
Fears of a new price war between the world's biggest crude-oil producer and Iran caused Saudi Arabia's Tadawul All Share Index, the largest Arab market, to drop by 5.4%. It has now shed 20$ of its value since the start of the year, according to The Independent.
Meanwhile, shares in Qatar and Dubai, two more oil-dependent Gulf states, fell 7.2% and 4.6%, respectively. Abu Dhabi's main share index dropped 4.2%.
The lifting of sanctions means Iran can start exporting oil worldwide, having been restricted to selling to a handful of countries, including China and India, as reported.
Read alsoReuters: Oil slides to lowest since 2003 as Iran sanctions are liftedThe decision to lift sanctions on Iran is untimely because oil prices are already languishing at 12-year lows. A barrel of Brent crude has fallen from above $110 to below $29 in just 18 months, The Independent reported.
Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, which controls a third of the world's production, has ignored calls to cut output in recent months, in a bid to drive America's shale frackers – which have a higher cost of production – out of business. But the move was also seen as a way to gain market dominance over Iran, according to the report.