Saudi markets tank

GlobalPost

It's been a very ugly day for stocks in Saudi Arabia. The market tumbled some 7 percent on new worries about the ongoing political unrest in neighboring Bahrain.

Investors were apparently further unnerved by this article in Milaz.info, which reports that Saudi tanks have been seen headed to Bahrain.

Money quote:

Witnesses said that the causeway was blocked as "15 tank carriers carrying two tanks each were heading towards Bahrain," Egypt s al-Masry al-Youm daily reported in its latest edition.

Given the popular protests in the Persian Gulf kingdom, the transfer of the military hardware from Saudi Arabia to Bahrain seems highly unusual, commuters traveling along the 25-km causeway said.

For the past two weeks, protestors in Bahrain have been calling for the ouster of the government, and demanding further political reforms.

Saudi Arabia, of course, is watching developments closely and hope to avoid a protest spillover in the oil-rich kingdom.

Last week, King Abdullah announced a series of benefits ranging from aid to young, unemployed people to new funding to help offset high inflation. The goodies — which made no mention of political reform — add up to about $10.7 billion.

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