THIS MORNING: Saudi crude exports to US hit zero in July for first time since 1985

Good morning, friends. Saudi Arabia is playing a long game as it looks toward 2034, overhauling its footballing DNA to turn global attention into a self-sustaining powerhouse. Elsewhere, the retail sector is signaling confidence in Madinah’s long-term growth as Apparel Group locks in 24 brands for KEC's Multaqa AlMadinah Mall.

BUT FIRST- A fire broke out at Aramco’s Jazan refinery early yesterday, which the Houthis claimed they targeted with a drone. The militant group said that the strike was in retaliation for Saudi Arabia’s breach of the Arab country’s airspace with drones in Saada and Hajjah, military spokesperson Yahya Saree said on X. The fire was later extinguished, with no injuries reported, the Energy Ministry said on X.

The Houthis are escalating their attacks: The attacks follow recent Houthi shelling in Najran, which led to the injury of 11 civilians, with the group also claiming a strike on a Saudi base in eastern Yemen. Jazan was also struck last month, damaging the refinery’s gasification complex and tank farm. Aramco CEO Amin Nasser said last week that those recent attacks led to some production interruptions but had no material operational impact.

Destination Sahel Issue III drops this week, and we’re diving into how the North Coast is adapting to a changing market.

Developers are recalibrating as buyer behavior shifts, luxury retail is carving out a bigger piece of Sahel’s economy, and the wellness and sports scene has become a summer destination on its own.

In this issue, we get into what’s actually changing on the ground, from how developers are adjusting their pitch to where to shop and how to stay active this season.

Coming straight to your inbox on Wednesday, 12 August.

US-bound crude exports fall to zero

Saudi crude exports to the US fell to zero throughout July, the first full month without Saudi shipments since 1985, Bloomberg reports, citing preliminary Energy Information Administration data. The drop marks a sharp reversal from 1Q this year, when US refiners were taking an average of more than 500k bbl / d of Saudi oil, roughly 15.5 mn barrels a month.

A second disruption layered on top of Hormuz is behind the shift. The Kingdom had been routing crude west through the East-West pipeline to Yanbu to sidestep the strait, but last month’s Houthi threats against vessels calling at Saudi ports in the Red Sea made that bypass commercially risky for Western firms, closing off both routes at once.

Venezuela is the clearest beneficiary: US imports of Venezuelan crude rose to 18.2 mn barrels for the month, roughly 586k bbl / d, from a monthly average of around 15.2 mn barrels in 2Q.

The halt may prove temporary: Saudi shipments to the US are expected to recover to around 300k bbl / d in August, Bloomberg adds, citing Kpler data.

Aramco reduces Arab Light crude price

Aramco cut its Arab Light crude price for Asian buyers by USD 0.5 per barrel for September, dropping USD 2 below the regional benchmark and marking the fifth-lowest price set by Saudi Arabia since 2000, Bloomberg reports, citing a price list. The cut comes as some GCC producers continue to move crude through Hormuz ahead of an anticipated agreement to reopen the waterway, while Saudi shipments through the strait remain muted.

The final price paid by refiners may differ from the official price, with additional pipeline and logistics costs for supplies routed through Yanbu or Egypt’s Sidi Kerir. Aramco also raised prices for its Arab Medium and Arab Heavy crude grades for Asia, although those barrels are mainly theoretical, as they are typically shipped through Hormuz, while cutting prices across all grades for buyers in the US, Northwest Europe, and the Mediterranean. CEO Amin Nasser previously said that Aramco maintained crude exports at around 5 mn bbl / d, about 70% of normal levels.

REMEMBER- Iran and Oman are reportedly nearing an agreement on a new shipping route through the Strait of Hormuz, but reopening the waterway would depend on several conditions, including an end to the US naval blockade and sanctions, the withdrawal of regional troops, payment of war reparations, and the unfreezing of Iranian assets.

Ladun, Armah are making the jump to TASI

Ladun Investment got Tadawul’s approval to transfer its shares from Nomu to the main market effective 9 August, it said in an announcement. The company has SAR 500 mn in capital divided into 500 mn shares.

The timeline: Ladun will continue trading on Nomu until the end of the 10-session period for publishing its transfer document. Trading will then be suspended for up to five sessions as the transfer takes effect, with TASI to announce the listing date on the main market once procedures are completed.

REMEMBER- The company re-submitted its application to transfer from the Nomu parallel market to the main market last month, after hitting the brakes on its move late last year.

ALSO- Armah Sports received the Saudi Exchange’s approval to transfer from the Nomu parallel market to the main market, according to an announcement. The company has capital of SAR 328.6 mn, divided into 32.9 mn shares, and also submitted its application to transfer last month.

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The big story abroad

Today’s front pages are led by geopolitical developments on two fronts rather than corporate news. Here are the latest regional headlines, followed by highlights in the business press:

Hormuz resolution stalls: While Oman and Iran have yet to reach an agreement on transit through Hormuz, US President Donald Trump signaled a patient approach, saying Washington can afford to wait out the conflict as the Islamic Republic faces deepening economic woes. Trump indicated that Iran’s rising inflation and dwindling funds will put pressure on Tehran at the negotiating table.

Tehran reiterated that it will not engage in direct talks with the US, with Foreign Minister Abbas Araghchi citing Washington’s violations of the interim truce reached in July. Meanwhile, Iran’s top security official, Mohammad Bagher Zolghadr, has resigned and been replaced by fellow veteran and Revolutionary Guard commander Mohsen Rezaei.

On the Hamas-Israel front: Israeli Prime Minister Benjamin Netanyahu rejected a 15-point US-backed framework to disarm Hamas, pushing back at the suggestion that the IDF withdraw from Gaza. Hamas offered only conditional approval of the roadmap, tying weapon handovers to Israeli withdrawals and Palestinian statehood.

Asia’s carmakers swoop in on US market: With the conflict with Iran keeping fuel prices elevated, Asian carmakers Toyota and Hyundai have capitalized on surging US demand for hybrid vehicles, recording y-o-y sales increases of 22% and 62% respectively in July, according to data from RBC Capital Markets. Toyota, Hyundai, and Honda account for 86% of the US hybrid market, with Ford pickups making up most of the remainder.

China shifts strategy to fund tech scene: Chinese tech companies raised around USD 217 bn via IPOs and bond sales over the past two years, less than a sixth of the amount secured by US giants like Amazon and Alphabet, according to Bloomberg data. Tapping capital markets instead of relying solely on subsidies marks a shift for Beijing, unlocking USD 25 tn in household savings and providing local firms with low-cost funding.