Saudi Arabia recorded a 4.8% year-on-year GDP contraction in the second quarter, its largest since 2020, primarily due to a 24.7% drop in the oil sector. Non-oil activities grew modestly at 0.6% while hydrocarbons continued to account for roughly 55% of government revenue. The contraction follows 3% growth in the first quarter and coincides with five months of U.S.-Iran missile exchanges and related regional incidents.