Capital Economy, Business and Finance
World oil prices edged down at the weekend on news of Hassan Nasrallah's death and Israel's strikes against Houthis launching drones from Yemen. That suggests confidence on the part of oil traders that Iran doesn't want a regional war and the Houthis couldn't block the strait of Hormuz even if they wanted to. But it could spell trouble for Saudi Arabia, which last week prepared to boost oil production to cut prices and take market share from rivals who can't turn their supply on and off as easily. Now prices are sliding anyway, to $72 last night for a barrel of Brent crude and $68 for one of West Texas Intermediate. Saudi breaks even at $100 a barrel. Absent that sort of margin, it's having to borrow and raid its own savings to keep Crown Prince Mohammed bin Salman's grands projets – like Neom, his futuristic city – on track.
