Saudi Arabia in early talks with banks on $8bn financing amid Iran war fallout

BASRA, Iraq — Saudi Arabia has begun initial contacts with several banks as it seeks to shore up financing sources against the economic fallout from a war with Iran, according to Bloomberg. The Saudi National Debt Management Centre is holding talks with lenders on a possible credit tranche, while state oil company Aramco is conducting similar discussions with major financial institutions. Sources cited by Bloomberg said both sets of talks remain at an early stage and may not result in signed agreements. The combined financing under discussion is reported at around $8 billion. The moves come as Gulf states face the economic consequences of the conflict with Iran, including disruptions to commercial traffic through the Strait of Hormuz, rising import costs and added pressure on supply chains. No further details on the timing or terms of the prospective facility were immediately available.