President Donald Trump’s tariff offensive unleashed this week has sparked a global stock market rout, also raising fears of a general trade war and recession.

In Saudi Arabia, the state-run Al-Ekhbariya television channel reported online that “the Saudi stock index closed trading down (nearly) 7%, losing more than 800 points” on Sunday.

The network called it “the largest daily loss in five years” since the early days of the Covid-19 pandemic, with dozens of Saudi companies including oil giant Aramco in the red.

“Trump’s tariffs weighed heavily on global markets, and specifically today on Saudi markets,” Al-Ekhbariya reported.

The utilities sector was down 8.4%, banking 6.9%, telecommunications 5.9% and energy 5.29%, it added.

Shares in Saudi Aramco – the crown jewel of the kingdom’s economy – fell 6.2%.

State-run financial newspaper Al-Eqtisadiah said that “the Saudi stock market lost more than half a trillion riyals (about US$133 billion) in market value during Sunday’s trading”.

A large portion of the losses was attributed to Aramco shares, with the energy giant’s market value falling by “more than 340 billion riyals”, according to Al-Eqtisadiah.

Other Gulf markets also took a dive, reflecting global trends as countries around the world grapple with Trump’s shock tariffs affecting US allies and rivals alike.

According to official news agencies, Kuwait’s primary index fell 5.7%, the Qatari stock exchange was down 4.2%, and in Oman, the Muscat stock market closed with a 2.6% decline.

There was no trade in Abu Dhabi and Dubai, as the UAE now has a Western-style Saturday-Sunday weekend.

Under Trump’s policy, goods from Saudi Arabia, Kuwait, Qatar, Oman and the UAE will be subject to a 10% “baseline” tariff.

The uncertainty over trade and manufacturing has helped to fuel a days-long panic in global markets.

Stock exchanges in Europe and Asia closed at a loss on Friday, and analysts expect further declines when they reopen on Monday.