DUBAI – Shares of Saudi Aramco opened at 34 riyals ($9.06) on Wednesday, their lowest level since the oil giant began trading on December 11, after Iran launched missiles on US targets in Iraq.
At 9:40am, Aramco had recovered to 34.15 shares, but were down 0.6 percent compared with Tuesday.
The latest price valued the company at $1.82 trillion, down from a peak of $2.06 trillion on December 12.
Jason Tuvey, a senior emerging markets economist at Capital Economics, said the decline in Aramco’s share price in the final couple of weeks of last year was a case of reality kicking in among investors, but the recent weakness was due to geopolitical tensions.
“In the past week, however, geopolitical tensions have been the main driver of the drop – investors are clearly concerned that Iran, or Iran-backed proxies, target Aramco’s infrastructure once again.”