Saudi Aramco Restarts Oil Loading at Ras Tanura After 4-Month Halt

Saudi Aramco has resumed oil loading operations at its strategic Ras Tanura terminal on the Gulf coast, ending an almost four-month suspension caused by regional conflict. Shipping data from LSEG confirms that the facility is once again active, marking a significant milestone in the kingdom's efforts to restore normalcy to global energy flows following the recent interim peace deal between the US and Iran.

On Friday, operations saw oil loaded onto two Very Large Crude Carriers (VLCCs) at the terminal, with a third vessel waiting nearby. Each of these massive tankers is capable of carrying approximately two million barrels of oil, underscoring the scale of the export capacity now coming back online. Ras Tanura, home to one of the world's largest oil export terminals and refining facilities, typically handles a significant share of Saudi crude exports destined for markets in Europe, China, Japan, and South Korea.

The halt in operations was not voluntary but forced by severe geopolitical disruption. In early March, operations at the refinery were briefly halted after a fire broke out following a drone attack. More critically, the subsequent blocking of the Strait of Hormuz during the war between Iran, the US, and Israel prevented ships from entering or leaving the Gulf. This closure caused cumulative oil supply losses from Middle Eastern producers to exceed 1.3 billion barrels, according to the International Energy Agency (IEA). Hydrocarbon flows through the vital waterway plummeted from roughly 20 million barrels per day (bpd) pre-conflict to an average of just 2.7 million bpd in March, April, and May.

In response to the blockade, the kingdom pivoted its strategy, diverting all exports to the Red Sea port of Yanbu via the East-West pipeline. This alternative route proved critical; exports from Yanbu surged from two million bpd before the outbreak of war to more than five million bpd by early June. The kingdom also boosted deliveries using stocks held overseas to meet client commitments, predominantly in Asian markets.

The return to Ras Tanura comes as many Gulf producers rapidly increase output and exports following the announcement of the interim deal to halt the war. While diplomatic talks between Tehran and Washington continue, market analysts warn that the situation remains highly unpredictable.

"Despite the preliminary agreement, there are major strains in large parts of the market and uncertainty over how the peace talks will play out," IEA analysts noted this week. Tensions flared recently when a cargo ship was attacked while attempting to pass through the strait near the Omani coast. The incident led to a pause in the operation to escort ships through the strait, reigniting concerns about the durability of the ceasefire.

Disputes over safe passage protocols persist, with two US officials stating that Iran fired on the ship, while Iranian officials maintained that vessels refusing to sail on routes designated by Tehran would not be guaranteed safety.