He had started the day 10th overall, but fell back to 14th.
“It was a dangerous stage, with lots of difficult dunes. Several kilometres before the neutralised section, we got completely lost with Nasser and other drivers,” said Peterhansel.
“Some drivers got there at the right time, when we eventually found the right way and gained a lot of time. In the end, it’s a good stage for my teammate Carlos ... whilst we have got a bit closer to Nasser, even if we are still in third position.”
SA's Giniel de Villiers was third on the day and is sixth overall, one hour and three minutes off the lead.
In the motorcycle category, American Ricky Brabec finished the stage second and extended his lead on a Honda. He now leads Chilean Pablo Quintanilla by 25 minutes.
Australian Toby Price, the defending champion, dropped to fourth overall and 28 minutes off the lead.
The rally, being held in the Middle East for the first time, ends in Qiddiya on Friday.