(Credit: Brigitte Lacombe)

The Metropolitan Opera has announced that the Saudi Arabian government has withdrawn from funding arrangement that would have provided up to $200 million to the company over eight years.

Per The New York Times, Saudi officials told Met General Manager Peter Gelb revealed that the decision was the result of economic damage caused by the war in Iran and the blockading of oil through the Strait of Hormuz.

The arrangement, originally announced in late 2025, would have seen the Met travel to Saudi Arabia for a three-week residency each February at the Royal Diriyah Opera House near Riyadh. Now, the Met faces a $30 million shortfall that must be addressed before the close of its fiscal year on July 31. The original agreement was framed as a memorandum of understanding and never legally committed the Saudis to the full funding arrangement.

“This is something we had been working on for several years,” Gelb said, per the NY Times. “It’s a very significant disappointment. We are determined to find a sustainable path forward.”

The news is the latest blow for the company which has struggled financially over the past few years. Gelb’s attempts to stop the bleeding have included digging into the endowment several times as well as resorting to layoffs, temporary salary cuts, and a reduced performance schedule for next season. The Met will stage 17 operas next season, compared to 25 in recent pre-pandemic years. The company also recently announced a partnership with champagne brand Perrier-Jouët.

The Met also holds a $62 million line of credit due in February 2027. The company is also expecting to receive a bequest in excess of $100 million but that money is at least a year away.

The NY Times report also notes that Gelb will aim to pursue similar residency arrangements with other countries. He also confirmed plans to sell naming rights to the Metropolitan Opera House as well as a private buyer for its two Marc Chagall murals, with the condition that they remain on display during the opera season.