Saudi Arabia Reroutes Arab Light Crude Exports via Yanbu Amid Hormuz Disruptions, Pressuring Gold Prices Lower Despite Geopolitical Tensions.

Saudi Arabia has launched a tender to sell 2 million barrels of its flagship Arab Light crude for loading this month from the Red Sea port of Yanbu, marking its fourth such offering amid efforts to reroute supplies away from the disrupted Persian Gulf and the Strait of Hormuz. By shifting onshore Arab Light volumes through the 7 million bpd Petroline pipeline to Yanbu, the kingdom has boosted exports from the western terminal to around 2.47 million bpd—a dramatic 330% increase from pre-conflict levels—while supertanker traffic shows 27 vessels heading to Yanbu compared to far fewer at other nearby ports. Although the pipeline has substantial capacity, Yanbu's terminal loading is constrained to roughly 3 million bpd at most. This pivot follows requests to Asian clients for April nominations, with Arab Light now exclusively loading from Yanbu, and recent successful passages of Saudi crude tankers (including one carrying 1 million barrels to India) through the Strait of Hormuz after Iranian approvals highlight ongoing logistical adaptations in a tense regional environment.