Saudi Aramco is adjusting its export operations in response to the ongoing conflict involving Iran, offering Asian buyers the option to take crude oil shipments from either its Gulf terminal at Ras Tanura or the Red Sea port of Yanbu. The move comes as shipping through the Strait of Hormuz—the critical channel connecting the Gulf to international waters—remains largely halted due to the conflict, forcing the world’s largest oil exporter to modify its logistics and maintain delivery commitments.
According to multiple sources, Aramco has extended the deadline for buyers to submit their nominations for April-loading cargoes until Friday, a delay from the usual schedule when allocations for Asia are released around the 10th of each month. Asian buyers typically monitor these nominations closely, as they provide a clear indicator of crude demand in the region, which is the world’s largest importer of oil. The dual-terminal approach reflects both a contingency strategy and an effort to ensure that shipments continue flowing despite disruptions in the Gulf.
The Red Sea option at Yanbu, however, is available only for Arab Light crude, a popular grade in the Asian market. By expanding shipments to Yanbu, Aramco is leveraging its existing infrastructure to bypass the Strait of Hormuz, which has become a bottleneck for exports since the escalation of hostilities. Data from LSEG shows that average Yanbu loadings rose to 2.2 million barrels per day during the first nine days of March, up from 1.1 million barrels per day in February, reflecting the scale of the operational shift.
Before the war began, Saudi Arabia was exporting approximately 6 million barrels per day through the Strait of Hormuz, highlighting the significant logistical challenge created by the conflict. The interruption of maritime traffic in the southern Gulf has prompted energy producers to rely more heavily on inland pipelines and alternative ports to maintain supply to global markets. For Aramco, the use of Yanbu as an alternative shipping point is part of a broader effort to secure deliveries to Asian customers while minimizing the risks associated with traversing conflict-affected areas.
Industry observers note that the deadline extension for nominations and the introduction of dual-terminal options signal heightened caution on Aramco’s part, as uncertainty over the duration of the Strait of Hormuz closure remains high. Asian refiners, who depend on consistent supplies of Arab Light and other Middle Eastern crudes, are being given additional flexibility to plan shipments in a volatile environment. This approach ensures that Aramco can balance output adjustments with the need to meet contractual obligations to key customers, despite the logistical challenges posed by the crisis.
The broader implications for global oil markets are significant. With the Strait of Hormuz disrupted, analysts warn that regional instability could create supply gaps that may drive price volatility internationally. The combination of pipeline rerouting, dual-terminal options, and extended nomination deadlines demonstrates the complex operational planning required to maintain exports during geopolitical conflict.
Saudi Aramco declined to comment on the specific production levels associated with the April-loading nominations. However, the company’s CEO has previously warned that the ongoing war could have catastrophic consequences for global oil markets, reinforcing the urgency of these adjustments. By actively managing shipments through Ras Tanura and Yanbu, Aramco is attempting to mitigate the impact of maritime disruptions, preserve customer relationships, and maintain stability in its export volumes amid one of the most challenging operational periods in recent history.
This strategy underscores the increasing importance of flexible infrastructure and contingency planning in global energy logistics, especially as geopolitical risks continue to shape supply routes and international trade flows.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem