Saudi Arabian Aramco, according to sources with knowledge of the situation, decided to move forward with preparations for an Initial Public Offering (IPO) of its energy trading division, which would be one of the biggest share sales this year.

The biggest oil company in the world has, since May, appointed three Wall Street firms to be primary advisors, according to Bloomberg News. The goal is to work towards a listing, either by the end of the year or early in 2023, in Riyadh.

Sources claim that the IPO, which Aramco is now broadening to include additional banks in, may value the unit at more than $30 billion.

Given market fluctuation, however, especially in a case of a deteriorating market economy, the IPO may be postponed or even canceled. As of yet, there has been no final decision, the sources claim.

Although weakening economies and increasing interest rates have impacted the global IPO market, Saudi Arabia still has a strong demand for deals. However, the diplomatic spat that recently emerged between Saudi Arabia and the US could threaten the financial stability of the Gulf.

Increasing tensions with the US

It is worth noting that earlier in October, the 13-nation OPEC+ and its 10 allies infuriated the White House by resolving to cut output by two million barrels per day beginning in November, fueling fears that oil prices may spike.

"I'm not going to get into what I'd consider and what I have in mind. But there will be -- there will be consequences," US President Joe Biden told CNN.

Biden would not specify which choices were being evaluated, although the White House had previously stated that Biden was reassessing connections between allies.

"I think the president's been very clear that this is a relationship that we need to continue to re-evaluate, that we need to be willing to revisit," US National Security Council spokesman John Kirby told CNN, adding that "Certainly in light of the OPEC decision, I think that's where he is."

Saudi Arabian Foreign Minister Adel Al-Jubeir denied all allegations that OPEC+'s decision was directed at the US and stated that its aim was to stabilize the global market amid a slowing economy.

Furthermore, earlier today, Saudi Arabia reaffirmed interest in joining BRICS to which a Beijing-based international relations expert commented saying that "joining BRICS will also protect Saudi Arabia's own energy interests in a substantive way, rather than being a card to be used by others."

Read more: Saudi Arabia seeking to join BRICS threatens US' "Oil for Security"