Saudi Oil Pipeline Boosts Exports 37.4%, Trade Surplus Hits Highest Since 2022

Naval vessels at Yanbu port on the Red Sea (SPA) 
Naval vessels at Yanbu port on the Red Sea (SPA) 
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Saudi Oil Pipeline Boosts Exports 37.4%, Trade Surplus Hits Highest Since 2022

Naval vessels at Yanbu port on the Red Sea (SPA) 
Naval vessels at Yanbu port on the Red Sea (SPA) 

Saudi Arabia’s merchandise trade surplus surged to its highest level since 2022 in March, driven by strong momentum in oil exports, which rose 37.4%, while the East-West pipeline played a central role in improving the flexibility of crude flows to Red Sea ports, according to official data and an industry expert.

Strategic energy infrastructure helped the Kingdom improve export efficiency and diversify access points to global markets, the General Authority for Statistics said in its international merchandise trade bulletin published on Thursday.

The authority reported that the merchandise trade surplus jumped 218.9% year-on-year in March, marking its highest level since 2022, supported by robust growth in oil exports.

Mohammad al-Sabban, a former senior adviser to the Saudi oil minister, told Asharq Al-Awsat that the rise in the Kingdom’s oil exports in March demonstrated the success of long-term planning through the construction and rehabilitation of the East-West pipeline, which transports crude and petroleum products to the Red Sea port of Yanbu.

He noted that the pipeline had helped Saudi Arabia bypass risks linked to the Strait of Hormuz after remaining closed for extended periods in the past.

Al-Sabban added that the government built the pipeline in the mid-1980s in what proved to be a sound strategic decision, explaining that its current capacity has reached 7 million barrels per day.

He said the infrastructure had contributed to the 37.4% rise in oil exports, equivalent to around SAR100 billion ($26.66 billion), increasing the share of oil in total merchandise exports.

“Many countries have seen their exports shrink after the recent crisis, but with the East-West pipeline in place, the Kingdom was able to raise total merchandise exports,” he stated.

According to the statistics authority, the total value of Saudi merchandise exports reached about SAR115 billion ($30.66 billion) in March, up 21.5% from the same month in 2025.

The increase was driven mainly by a sharp rise in oil exports, which climbed 37.4% to SAR92.5 billion, raising their share of total exports to 80.3% from 71.0% a year earlier.

Non-oil exports, including re-exports, fell 17.3%, while national non-oil exports excluding re-exports declined 27.0% to SAR14 billion ($3.73 billion).

Re-exported goods rose 2.5%, supported by a 51.1% jump in exports of “machinery, electrical equipment and parts thereof,” which accounted for 62.4% of total re-exported goods.

Imports fell 24.8% year-on-year in March to SAR58 billion ($15.46 billion), the report showed.

The sharp decline in imports, combined with higher exports, increased the ratio of non-oil exports to imports to 39.3%, compared with 35.8% a year earlier.

The report indicated that “machinery, electrical equipment and parts thereof” remained the most influential category in non-oil exports, accounting for 27.4% of the total after rising 46.2%. The same category also ranked first among imports at 30.4%, despite an 11.9% decline.

China remained Saudi Arabia’s top trading partner, accounting for 14.1% of Saudi exports, followed by India at 13.7% and Japan at 9.5%. Exports to the Kingdom’s top 10 destinations represented 69.8% of total exports.

China also remained the Kingdom’s largest source of imports, accounting for 26.7% of the total, followed by the United States at 8.4% and the United Arab Emirates at 7.1%.

Jeddah Islamic Port remained the main entry point for imports into the Kingdom, handling 29.8% of total imports.

For non-oil exports, King Abdulaziz International Airport in Jeddah ranked as the leading export gateway with a 23.4% share, followed by Jeddah Islamic Port at 21.2% and the Al-Batha land crossing at 8.2% of Saudi non-oil merchandise exports.

 



Gold Extends Gains After US, Iran Reach Peace Deal

Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)
Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)
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Gold Extends Gains After US, Iran Reach Peace Deal

Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)
Gold bars of various values are stored in a safe deposit room in Munich, Germany, January 28, 2026. (Reuters)

Gold rose more than 2% on Monday after US and Iran officials said they had reached an initial agreement to end their war, pushing oil prices lower and easing concerns about inflation and higher interest rates.

Spot gold climbed 2.5% to $4,322.87 per ounce by 0312 GMT, hitting its highest level since June 9 and extending gains for a third straight session. US gold futures ‌for August delivery ‌rose 2.5% to $4,344.80.

US and Iranian officials said on ‌Sunday ⁠they had agreed ⁠on a framework to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz.

The pact will be officially signed on Friday in Switzerland, Pakistani Prime Minister Shehbaz Sharif said in a post on X.

The US dollar fell to a 10-day low, making greenback-priced bullion cheaper for other currency holders, while oil prices slipped more than 4%.

"Lower ⁠oil prices and a softer dollar, stemming from ‌reduced geopolitical risk and the anticipated reopening ‌of the Strait of Hormuz, are helping to calm inflation expectations," said Tim Waterer, ‌chief market analyst at KCM Trade.

"This combination is providing the ‌precious metal with its best tailwind in recent weeks, though sustainability will depend on how durable the peace agreement proves to be."

Gold prices have fallen about 20% since the start of the US-Israeli war against Iran in late February. The ‌effective closure of the Strait of Hormuz has led to a sharp increase in global oil prices, stoking ⁠inflation concerns ⁠and raising expectations of interest rates staying higher for longer.

Bullion loses appeal in a high-interest-rate environment as it is a non-yielding asset.

Markets have scaled back expectations for a US rate hike in December to 48% after the peace deal, down from 69% last week, according to the CME FedWatch tool.

Investors now await the Federal Reserve policy decision and remarks, the first under Chair Kevin Warsh, on Wednesday, with rates widely expected to remain unchanged.

"Currency debasement concerns, fiscal risks and ongoing geopolitical fragmentation continue to underpin long-term demand (for gold). A moderation in energy-led inflation could help these themes regain traction," OCBC said in a note.

Spot silver rose 3.6% to $70.39 per ounce, platinum gained 3.3% to $1,773.70 and palladium climbed 3.3% to $1,324.75.


Oil Slips $4 as US, Iran Reach Peace Deal to Reopen Strait of Hormuz

A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US, February 18, 2025. (Reuters)
A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US, February 18, 2025. (Reuters)
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Oil Slips $4 as US, Iran Reach Peace Deal to Reopen Strait of Hormuz

A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US, February 18, 2025. (Reuters)
A pump jack operates near a crude oil reserve in the Permian Basin oil field near Midland, Texas, US, February 18, 2025. (Reuters)

Oil prices slipped to their lowest since March on Monday after US President Donald Trump and Iran's deputy foreign minister said they had reached an initial deal to end the war and to resume traffic through the Strait of Hormuz.

Brent crude futures fell $4.08, or 4.7%, to $83.25 a barrel by 0415 GMT and US West Texas Intermediate was at $80.53, down $4.35, or 5.1%. Both contracts fell to their lowest levels since March 10 on Monday after tumbling more than 3% on Friday.

The US and Iran ‌will sign a ‌memorandum of understanding in Switzerland on Friday, said the prime ‌minister ⁠of Pakistan, whose country ⁠has served as a mediator. Trump said on Sunday that the Strait of Hormuz would be open "toll free" and that a US naval blockade of Iranian ports would also end.

Iran's semi-official Mehr news agency said the draft deal called for reopening the Strait of Hormuz within 30 days under Iranian arrangements.

"The geopolitical risk premium that had been built into crude is now being unwound quite aggressively as traders price in the prospect of restored oil ⁠flows," said Tim Waterer, chief market analyst at KCM Trade.

The ‌world has lost millions of barrels of oil ‌and gas supply since the war closed the Strait of Hormuz, a chokepoint for a fifth of ‌the world's oil and liquefied natural gas supplies, for more than three months.

Investors ‌are also watching cautiously how quickly Middle Eastern producers can resume oil production and exports following damage from the war and whether more ships will enter the region.

"While these uncertainties suggest upside risks to our forecast for Brent oil futures to reach $80/bbl by the end of the year, it's worth ‌noting that oil flows through the Strait of Hormuz just needs to reach 60-70% of pre-war levels to return oil markets ⁠to pre-war oversupply ⁠expectations," Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia, said in a note.

Iran's deputy foreign minister, Kazem Gharibabadi, said a more expansive agreement would be negotiated during a 60-day ceasefire period.

E4 nations, which include the UK, France, Germany and Italy, said on Sunday the countries were prepared to lift sanctions on Iran in response to steps on its nuclear program.

"Beyond the immediate price reaction, attention will now shift toward the pace of actual supply normalization and compliance with the agreement," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

"While the conflict may have come to an end and oil flows through the Strait of Hormuz may gradually return to normal, the damage already done cannot be reversed overnight. This includes not only any physical damage to oil infrastructure but also the economic strain endured by oil importing economies that have faced elevated energy costs for months."


Riyadh Air Launches First Domestic Service to Jeddah

The launch marks a key step in the carrier's strategy to expand its destination network from the Saudi capital. SPA
The launch marks a key step in the carrier's strategy to expand its destination network from the Saudi capital. SPA
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Riyadh Air Launches First Domestic Service to Jeddah

The launch marks a key step in the carrier's strategy to expand its destination network from the Saudi capital. SPA
The launch marks a key step in the carrier's strategy to expand its destination network from the Saudi capital. SPA

Riyadh Air, Saudi Arabia's new national carrier, launched on Sunday its first domestic flight from Riyadh to King Abdulaziz International Airport in Jeddah.

The move is part of Riyadh Air's plans to expand its domestic network through daily flights between Riyadh and Jeddah and strengthen connectivity between major destinations across the Kingdom.

The inaugural flight arrived from King Khalid International Airport in Riyadh with Minister of Hajj and Umrah Tawfig Al-Rabiah, President of the General Authority of Civil Aviation Abdulaziz Al-Duailej, Riyadh Air board member Raid Ismail, and several aviation-sector leaders on board.

They were received by Chairman of the Board of Directors of Jeddah Airports Company (JEDCO) Raed Al-Mudaiheem, JEDCO CEO Mazen Johar, and representatives of government and security agencies operating at the airport.

The launch marks a key step in the carrier's strategy to expand its destination network from the Saudi capital. The inaugural flight departed King Khalid International Airport (RUH) at 9:00 a.m. and landed at King Abdulaziz International Airport (JED) at 10:50 a.m.

Riyadh Air launched the route with two daily flights. Frequencies will increase to three daily flights from June 18 and four daily flights from July 2.

The route is being launched amid strong demand growth. According to aviation analytics firm OAG, the Riyadh-Jeddah route ranked as the world's fifth-busiest domestic air route in 2025, with 9.8 million seats.

By operating the service, Riyadh Air supports national strategies by providing additional seat capacity that contributes to the growth of the Kingdom's tourism, business, and economic sectors.

Riyadh Air CEO Tony Douglas said the launch of flights to Jeddah marks an important milestone in the airline's journey toward building a broad network connecting Saudi Arabia with the world. He noted that the route serves a large segment of business and leisure travelers and supports the goals of Saudi Vision 2030 to develop the aviation sector and strengthen air connectivity.

JEDCO CEO Mazen Johar said the new service reflects integration among the components of the Kingdom's aviation ecosystem and contributes to expanding travel options and enhancing passenger services. He added that King Abdulaziz International Airport served more than 14.8 million passengers through nearly 84,000 flights during the first quarter of 2026, reflecting continued growth in operational activity.

The new flights support Riyadh Air's goal of reaching more than 100 destinations worldwide. The route also facilitates business travel, tourism, and Hajj and Umrah traffic while reinforcing Riyadh's position as a major international air-connectivity hub.