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His expert driving skills and the unflappable performance of the 863bhp Peugeot 208 T16 meant the route's record - previously set by New Zealander Rhys Millen - was obliterated by 90 seconds.
But the record-breaking run almost ended in disaster when a group of spectators decided to cross the track just after a blind bend.
The video below shows one spectator nonchalantly crossing the road despite the roar of the approaching Peugeot growing ever louder.
Just before Loeb hurtles around the blind bend - he averaged a speed of 87.47mph so we'd dread to think what he was doing at this point - a further three nutters scuttle across the course.
Loeb fires out of the sharp left and narrowly misses the crazy spectator by a yard or so as the crowd holds its breath in anticipation of a serious accident.
Watch the video below and check out more of Loeb's amazing record-breaking run HERE