Saudi Aramco shares dive 10%, Gulf debt markets hit in all-out crude war

Saudi Aramco shares fell by as much as 10% on Monday, dropping below their December listing price after Saudi Arabia and Russia said they would raise oil production in a battle for market share, sending crude prices down by a third.

Government bonds from Saudi Arabia and other Gulf oil producing countries were also pummeled after the collapse of the deal between OPEC, Russia and other oil producers that had propped up oil prices since 2016.

Aramco shares fell below their 32 riyals initial public offering price on Sunday for the first time since trading began in December. The Aramco listing was considered the culmination of Crown Prince Mohammed bin Salman’s efforts to diversify the Saudi economy. The December IPO valued the company at $1.7 trillion in the world’s biggest share offering.