Saudi Crown Prince Salman bin Abdulaziz al-Saud speaks during the opening session of the Gulf Cooperation Council in Jeddah, Saudi Arabia, May 14, 2014. REUTERS/Mandel Ngan/Pool
Saudi Crown Prince Salman bin Abdulaziz al-Saud speaks during the opening session of the Gulf Cooperation Council in Jeddah, Saudi Arabia, May 14, 2014. REUTERS/Mandel Ngan/Pool REUTERS/Mandel Ngan/Pool

How would next leader of the oil-rich Kingdom of Saudi Arabia respond to oil prices and the Islamic State problem is now being speculated following the hospitalization of King Abdullah bin Adulaziz on Wednesday.

YouTube/Mindreader

While office palace announcement is that it is just for medical checks, The Times says the Gulf region is jittery since the king is in his 90s, although his exact age in unknown.

Reuters cited its source as saying that the king was hospitalised for breathing difficulties although his condition is stable now. Prior to his confinement, the royal had undergone surgeries the past few years for herniated disc.

Minutes after news of his confinement was known, .TASI, the stock market of Saudi Arabia tumbled down 5 percent, although it eventually recovered to 3 percent lower.

King Abdullah named in June 2012 Prince Salman, his half-brother who is younger than him by 13 years as his heir after the king's son, Crown Prince Nayef bin Abdulaziz died. In early 2014, he named Prince Muqrin bin Abdulaziz as deputy crown prince.

Although the line of succession is clear and predictable, Bilal Saab, the senior fellow for Middle East security at the Atlantic Council, admits it is the market that reacts in unpredictable ways.

He pointed out the situation is more chaotic in Oman because its sultan, Qaboos bin Said Al Said, has no formal succession plan and political chaos is one scenario being painted should the sultan die.

To contact the writer, email: v.hernandez@ibtimes.com.au