Good morning, wonderful people. The war (yes, it’s a war, regardless of what the Trump administration might say) officially entered its second week, and it’s hard to believe it has only been a week when looking at the pace of escalation.

As things stand: US President Donald Trump told reporters yesterday that his administration will keep attacking Iran until the country no longer has a military or leaders in power. “At some point, I don't think there will be anybody left maybe to say ‘We surrender,’” Trump said. His remarks came shortly after equally jarring remarks from the Iranian side — “as long as the presence of US bases in the region continue, the countries will not enjoy peace,” Iran’s speaker of parliament wrote on X.

MEANWHILE AT HOME- Riyadh could retaliate if Iran’s attacks persist: Saudi Arabia remains committed to a diplomatic resolution to Iran’s standoff with the US and Israel, but warned Tehran that further attacks could prompt a retaliatory response, Reuters reports, citing unnamed sources. The government will be forced to authorize Washington to use its bases in the country for military operations if the Islamic Republic continues to target Saudi territory and energy facilities, Foreign Minister Prince Faisal bin Farhan said, according to the sources.

We were under fire all weekend: The Defense Ministry said air defenses intercepted drones targeting Shaybah oil field, ballistic missiles aimed at Prince Sultan Air Base, cruise missiles and drones near Al Kharj, east of Riyadh, and in Al Jouf and the Eastern region.

And earlier today, the Defense Ministry intercepted seven drones, thwarting an attack on Riyadh’s Diplomatic Quarter.

Diplomats and embassy staff in Riyadh’s Diplomatic Quarter were told to stay indoors on Thursday following an unspecified security threat. Authorities also shut the district’s gates that afternoon, restricting access to the area that hosts most foreign missions in the Saudi capital.

Things are still relatively calm for us, compared to the relentless attacks on our neighbors. The UAE, Qatar, Bahrain, and Kuwait have all intercepted fresh barrages since Thursday morning. A quick overview:

  • The ongoing strikes forced a temporary halt to operations at Dubai International Airport yesterday — sending passengers into underground train tunnels to shelter;
  • In Manama, warning sirens sounded for the seventh time this weekend as a missile attack targeted the US Fifth Fleet’s service center;
  • Qatar intercepted a number of projectiles over Doha;
  • Kuwait temporarily shut its airspace to all commercial traffic.

There were signs we’re heading towards de-escalation: Iranian President Masoud Pezeshkian apologized to Gulf neighbors for recent strikes, announcing that Tehran’s interim leadership council has halted all attacks on regional states — provided their territories or airspace are not used to launch strikes against Iran. The concession offered a clear off-ramp and a potential diplomatic reset with GCC leaders who were reaching the end of their rope.

We might’ve had something to do with it: The Kingdom stepped up direct diplomatic engagement with Tehran over the past few days to try to contain the ongoing conflict and prevent further market disruption, Bloomberg reported on Friday, citing unnamed European officials. The talks, involving diplomats and security agencies, aim to de-escalate tensions, as Iran showed little willingness to negotiate with the US or Israel.

BUT- It didn’t last long: Iranian Foreign Minister Abbas Araghchi warned hours later that this window for de-escalation was “almost immediately killed” by Trump, who publicly framed the apology as an “unconditional surrender” by Tehran, and threatened further military action in a post on social media.

PLUS- Another security alert from the US embassy: The US mission in Saudi Arabia strongly urged Americans in the country to depart via commercial flights, it said in a statement on Saturday. US citizens who choose to remain in the Kingdom are urged to “shelter in place” with a supply of essentials. Operations at the US embassy and consulate are paused until further notice.

Happening today

Bidaya Finance’s SAR 1 bn sukuk offering commences today and continues through Tuesday, 10 March on the sukuk bonds market, Tadawul posted on X. The offering comes with a 7.1% quarterly coupon with a par value of SAR 1k, according to the prospectus (pdf).

ADVISORS- Bidaya tapped Impact46 and Merchants Capital to advise on the transaction. Receiving agents include Derayah, Alkhabeer Capital, Yaqeen, Aljazira Capital, Alrajhi Capital, SNB Capital, Musharaka, Albilad Capital, Alistithmar Capital, Arat, BSF Capital, SAB Invest, EFG Hermes, Alinma Capital, Riyad Capital, ANB Capital, and Sukuk Capital.

PSA

Eid vacation times are out: Private and government sector employees in the Kingdom will begin their Eid Al Fitr holiday at the end of the working day on Wednesday, 18 March. The break will run for four days.

Watch this space

AVIATION UPDATE — Saudia extended flight suspensions to and from Amman, Kuwait City, Abu Dhabi, Dubai, Doha, and Bahrain to today, with Moscow and Peshawar routes halted until 15 March. Limited flights on the Riyadh-Dubai and Jeddah-Dubai routes resumed yesterday.

SPORTS — The upcoming rounds of the Saudi Arabian Grand Prix and Bahrain Grand Prix could be cancelled without replacement, reducing the F1 season from a planned 24 races to 22, senior paddock sources told Reuters on Friday. The race at the Bahrain International Circuit in Sakhir is scheduled for 12 April, followed by the Saudi round at the Jeddah Corniche Circuit the following weekend.

Moving the races later in the year is difficult due to extreme summer temperatures in the region and a packed race calendar, while shifting them to alternative venues — such as Autodromo Internazionale Enzo e Dino Ferrari, Circuit Paul Ricard, Algarve International Circuit, or Istanbul Park — would pose major logistical challenges and leave little time for promoters to organize tickets, staffing, and race operations, the newswire reported.

Not just motorsports: The Fanatics Flag Football Classic, organized by Tom Brady for Riyadh this month, is expected to move to the US, Front Office Sports reported on Wednesday, citing sources familiar with the situation. The event will still air on Fox Sports and Tubi with Kevin Hart hosting, and features NFL stars including Saquon Barkley, CeeDee Lamb, Christian McCaffrey, and Rob Gronkowski in a round-robin tournament following Olympic-style flag football rules.

The move is a setback for the Kingdom’s efforts to grow American football, as officials had hoped the event would help pave the way for an NFL game in the Kingdom and attract US college program investment.

OIL — Aramco is temporarily rerouting some oil shipments via the Red Sea port of Yanbu, Al Ekhbariya reports. The oil giant is working to ensure the reliability of oil supplies and monitoring the ongoing conflict, with plans to restore operations once conditions stabilize, the company reportedly said.

REMEMBER — The Kingdom reportedly rerouted Asian energy shipments to the Red Sea port last week. Rising costs tied to the Strait of Hormuz — higher ins. premiums and security risks — have prompted a logistical pivot.

The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.

Subscribe here

***You’re reading EnterpriseAM Saudi, your essential daily roundup of business, economics, and must-read news about Saudi, delivered straight to your inbox. We’re out Sunday through Thursday by 7am Riyadh time.

EnterpriseAM Saudi is available without charge thanks to the generous support of our friends at Tas’heel and Hassan Allam Properties.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on saudi@enterpriseAM.com.

DID YOU KNOW that we also cover Egypt, the UAE, the MENA logistics industry, and the MENA <> India corridor?
***

The big story abroad

The escalating regional war is getting widespread coverage today, with US President Donald Trump saying Iran will be hit “very hard” on Saturday, adding that Washington will consider striking areas and groups of people in the Islamic Republic that were not previously targeted. This came after Iranian President Masoud Pezeshkian roundly rejected Trump’s call for Tehran’s “unconditional surrender.”

Regional oil output is severely disrupted: The UAE and Kuwait have started cutting oil production in light of the near-closure of the Strait of Hormuz. Kuwait Petroleum — a key exporter of naphtha to Asia and jet fuel to Europe — declared a force majeure over the weekend. It began with a cut of about 100k barrels per day early yesterday, which is expected to triple today, unnamed sources told Bloomberg.

Meanwhile, on Wall Street: Blackrock has set limits on withdrawals from one of its flagship private credit funds after seeing a 54% jump in redemption requests during 1Q 2026. Clients withdrew some USD 1.2 bn from the HPS Corporate Lending Fund, around 9.3% of its net asset value. Blackstone last week reported a similar outflow, with clients pulling out USD 3.7 bn from its flagship BCred fund in the first three months of the year.

Tags: