Al-Jasser to Asharq Al-Awsat: Saudi Arabia is a Vital Artery for Global Trade

One of the agreements signed at Jeddah Islamic Port. Asharq Al-Awsat
One of the agreements signed at Jeddah Islamic Port. Asharq Al-Awsat
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Al-Jasser to Asharq Al-Awsat: Saudi Arabia is a Vital Artery for Global Trade

One of the agreements signed at Jeddah Islamic Port. Asharq Al-Awsat
One of the agreements signed at Jeddah Islamic Port. Asharq Al-Awsat

Saudi Minister of Transport and Logistics Services Saleh Al-Jasser told Asharq Al-Awsat that the recent crisis involving the Strait of Hormuz demonstrated the Kingdom's strong infrastructure and substantial investments, many of which have been implemented in partnership with the private sector.

He said the crisis also highlighted the flexibility of Saudi Arabia's logistics system and its ability to respond to changing circumstances by redirecting trade flows as needed, stressing that the Kingdom serves as a vital artery for global trade.

His remarks came during the signing of several agreements at Jeddah Islamic Port, including the launch of Bahri Logistics' bonded storage zone. The facility belongs to Bahri Logistics, a business unit of Saudi shipping firm Bahri, and was inaugurated in cooperation with the Zakat, Tax and Customs Authority and the Saudi Ports Authority (Mawani).

Al-Jasser said Saudi Arabia has been undergoing a rapid logistics transformation since Crown Prince and Prime Minister Mohammed bin Salman launched the National Transport and Logistics Strategy.

He noted that the current regional crisis provides a real opportunity to assess the progress made since the strategy's launch, adding that it has clearly demonstrated the sector's enhanced preparedness.

Al-Jasser explained that before 2023, most of Saudi Arabia's trade activity was concentrated on the Kingdom's western coast, with approximately two-thirds of trade passing through eastern ports.

However, disruptions in the Red Sea during 2023 prompted the transfer of a significant share of Saudi trade to the eastern coast. With the emergence of the latest regional crisis, trade has now been redirected back to the western coast.

He stressed that this logistical flexibility benefits not only Saudi Arabia's own trade but also that of neighboring countries, adding that reforms implemented across the sector are now beginning to produce tangible results.

Commenting on the newly established truck logistics zone, Al-Jasser said it reflects the speed of response and the integrated coordination between the transport sector, customs authorities, and the private sector.

He explained that the sharp increase in the number of ships and trucks created the need for the facility, which is designed to improve logistics efficiency, particularly as operational capacity has expanded significantly.

The new zone will streamline truck entry and exit procedures, provide a safer and more organized environment for truck drivers, improve traffic management, and reduce congestion caused by the tens of thousands of trucks entering Jeddah Islamic Port each day.

Al-Jasser also announced the signing of seven contracts for new logistics zones at the port.

Among them is the largest overseas investment by Chinese company JD Logistics, which will establish operations inside the port.

Another agreement covers a logistics project in the Al-Khumrah area south of Jeddah, while five leading Saudi companies have also signed agreements to develop additional logistics zones.

He noted that the number of logistics zones across Saudi ports has now reached 34, supported by approximately SAR15 billion in private-sector investments.

Saudi Ports Authority (Mawani) President Suliman Al-Mazroua told Asharq Al-Awsat that additional investments are expected in the Al-Khumrah area as part of a major economic zone designed to attract further investment, noting that several promising opportunities are currently under development.

Al-Mazroua said the real value of logistics hubs lies not simply in serving as cargo transit points, but in the integrated services they provide, transforming Saudi ports into value-added platforms that enhance the competitiveness of global supply chains.

He explained that shipping companies increasingly choose to call at Jeddah Islamic Port because of the value-added services offered by its logistics centers, which remain the port's primary competitive advantage.

Al-Mazroua added that Jeddah Islamic Port has evolved beyond being merely a point of arrival and departure for ships. It has become a preferred destination for international shipping companies thanks to its advanced logistics infrastructure.

Saudi Arabia now operates 34 logistics centers, including 17 located within Jeddah Islamic Port itself, underscoring the port's central role in the Kingdom's national transport and logistics network.

The newly inaugurated bonded logistics zone is Bahri's first fully integrated logistics facility of its kind. It offers a range of advanced logistics solutions that support Saudi Arabia's ambition to establish itself as a global logistics hub capable of attracting cargo, facilitating international trade, and strengthening global supply chains.



Trump Pauses 50% Tariffs on Canadian Goods for Three Days

This aerial view shows a Capital Southern Transportation, Inc. truck passing over the Peace Bridge between Canada and the US in Fort Erie, Ontario, on August 18, 2026. (AFP)
This aerial view shows a Capital Southern Transportation, Inc. truck passing over the Peace Bridge between Canada and the US in Fort Erie, Ontario, on August 18, 2026. (AFP)
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Trump Pauses 50% Tariffs on Canadian Goods for Three Days

This aerial view shows a Capital Southern Transportation, Inc. truck passing over the Peace Bridge between Canada and the US in Fort Erie, Ontario, on August 18, 2026. (AFP)
This aerial view shows a Capital Southern Transportation, Inc. truck passing over the Peace Bridge between Canada and the US in Fort Erie, Ontario, on August 18, 2026. (AFP)

US President Donald Trump paused the planned rollout of punishing new tariffs on Canadian goods late Tuesday, as both sides indicated they were close to a broader trade agreement after weeks of talks.

Trump announced the three-day reprieve from 50-percent duties on select goods just hours before a midnight deadline.

The delay was "based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!" Trump wrote on his Truth Social platform.

Canadian Prime Minister Mark Carney was less definitive, saying "substantial progress has been made" towards a comprehensive trade deal, but "there is important work still to be done."

Ottawa and Washington have held intense negotiations on revising their existing deal, the United States-Canada-Mexico Agreement (USMCA), which Trump signed and praised during his first term but now says needs to change.

The US Trade Representative's office said on X that the pact between Washington and Ottawa is set to "include comprehensive market access for all American goods, economic security commitments, digital trade alignment" and other provisions.

A proclamation by Trump to pause the duties added that the suspension came about as "Canada has expressed a commitment to remove the discriminations or unreasonable and unequal impositions at issue."

Carney said the prospective deal aims to "address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers and families."

- 'Discriminatory treatment' -

Trump had signed orders for the 50-percent duties last month, with the White House alleging "discriminatory treatment" by Canada against US automobile and dairy products.

The new tariffs would cover products such as wine, hockey sticks and cement.

They target around 5.5 percent of Canada's exports to the United States, worth about $20 billion, Oxford Economics estimates.

While this only poses a "modest" negative risk to Canada's economy, Oxford Economics said in a recent report that the duties would "affect central Canada's manufacturing sector much more severely."

Canadian negotiators have been in Washington to push for a deal to avoid the new tariffs and also secure relief on Trump's sector-specific duties, which have battered Canada's auto, steel, lumber and aluminum industries.

Ottawa reportedly offered concessions like pressuring provinces to put some US beverages back on their shelves.

Without going into details, Trump added in his Truth Social post: "The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave!"

Trump has previously called for the revival of the controversial project opposed by environmental activists, which was blocked under his predecessor Biden.

- Political concerns -

"It's not unusual for a trade negotiation to go right up to the deadline," former US commerce official Christopher Padilla told AFP.

He expects that the Trump administration threatened new tariffs to try and win early concessions from Canada as the countries negotiate new terms for the USMCA.

Oxford Economics anticipates that manufacturers who stand to be most impacted include those in the cement, paper, printing, wood, clothing and electronic equipment sectors.

With the US Supreme Court striking down many of Trump's global tariffs earlier this year, the president had tapped an untested legal provision for the new duties targeting Canada.

The US duties will not apply to Canadian energy, potash or goods already facing sector-specific tariffs, but are set to hit products covered by the USMCA.

Trump's trade envoy Jamieson Greer previously said the tariffs aimed to "hold Canada accountable" for its retaliation against the United States.


Oil Extends Climb on Prolonged Hormuz Export Uncertainty

An automated oil drilling rig operated by ExxonMobil in Midland, Texas, US, August 17, 2026. REUTERS/Sheila Dang
An automated oil drilling rig operated by ExxonMobil in Midland, Texas, US, August 17, 2026. REUTERS/Sheila Dang
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Oil Extends Climb on Prolonged Hormuz Export Uncertainty

An automated oil drilling rig operated by ExxonMobil in Midland, Texas, US, August 17, 2026. REUTERS/Sheila Dang
An automated oil drilling rig operated by ExxonMobil in Midland, Texas, US, August 17, 2026. REUTERS/Sheila Dang

Oil prices climbed for a fourth straight day on Wednesday as investors weighed conflicting messages from Tehran and Washington on whether the Strait of Hormuz is open to ships.

Brent crude futures climbed 69 cents, or 0.8%, to $91.71 by 0415 GMT, while US West Texas Intermediate crude futures were up 76 cents, or 0.9%, to $85.70 a barrel, Reuters reported.

Both contracts closed on Tuesday at their highest in more than three weeks as hopes of peace between the US and Iran faded.

US President Donald Trump said on Tuesday no talks were taking place with Iran ⁠and insisted the ⁠Strait of Hormuz was open, contradicting Iran's assertion that the critical waterway remained shut to shipping.

A temporary ceasefire agreement expired on Monday and a senior Iranian official told Reuters that his country was moving to a "fully offensive" military posture due to the diplomatic stalemate, though there were no reports of fresh strikes by either side on Tuesday.

"The shipping risks are increasing again as attacks from Iran ⁠and Houthis remain prevalent in both key chokepoints, keeping oil prices supported in the near term," said June Goh, senior oil market analyst at Sparta Commodities, referring to the Strait of Hormuz and Bab el-Mandeb strait.

Shipping through Hormuz slowed, data showed on Wednesday, as most shipowners avoided the key waterway due to a lack of clear signaling on its reopening from a blockade.

"However, Gulf producers are finding alternative export routes to bring oil out to the Gulf of Oman," said Goh. "If sustainable, this could help increase shut-in production from these two producers."

To avoid the Strait of Hormuz, Iraq's cabinet approved mechanisms for exporting Iraqi ⁠crude through specialized international ⁠and local companies and via multiple export outlets, the government said on Tuesday.

The contracts under the new mechanism will run for three months starting September 1, according to a statement issued after the cabinet meeting.

In the US, crude oil and distillate inventories fell, while gasoline stocks rose last week, market sources said, citing data from the American Petroleum Institute.

Official inventory numbers from the US Energy Information Administration are due at 10:30 a.m. ET (1430 GMT), with analysts polled by Reuters expecting crude stocks fell by about 600,000 barrels in the week ended August 14.


Iraq Approves Three-Month Mechanism to Export Crude via Local, International Firms

The Zubair Oil Field in Basra, Iraq, April 6, 2026. (Reuters)
The Zubair Oil Field in Basra, Iraq, April 6, 2026. (Reuters)
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Iraq Approves Three-Month Mechanism to Export Crude via Local, International Firms

The Zubair Oil Field in Basra, Iraq, April 6, 2026. (Reuters)
The Zubair Oil Field in Basra, Iraq, April 6, 2026. (Reuters)

Iraq's cabinet approved mechanisms for exporting Iraqi crude through specialized international and local companies and via multiple export outlets, the government said on Tuesday.

The contracts under the new mechanism will run for three months starting September 1, according to a statement issued after the cabinet meeting.

Iraq ‌is seeking ‌to diversify its oil ‌export ⁠channels and maintain flexibility ⁠in marketing its crude amid the Iran war and the closure of the Strait of Hormuz, which has disrupted regional oil flows and created uncertainty around shipping routes.

Iraq ⁠has worked to develop ‌alternative export ‌routes in addition to its traditional southern terminals, ‌including routes through Türkiye and Syria, ‌as it seeks to reduce reliance on Gulf shipping routes.

Iraq is OPEC's second-largest oil producer and relies heavily on ‌crude exports for state revenue. Most of its exports are ⁠shipped ⁠from terminals in the southern Gulf, leaving the country particularly exposed to disruptions in the Strait of Hormuz.

The government did not immediately provide details on the companies to be selected, the volumes to be exported under the mechanism, or the specific export outlets covered by the contracts.