Saudi Aramco CEO Amin H. Nasser has warned that ongoing disruptions to shipping through the Strait of Hormuz could have “catastrophic consequences” for global oil markets, as tensions in the Middle East threaten one of the world’s most vital energy transit routes.
Speaking during the release of Aramco’s 2025 financial results, Nasser described the current situation as the “biggest crisis the region's oil and gas industry has faced,” emphasizing the risks to global energy supply chains. He cautioned that unless tanker movements through the Strait of Hormuz resume normally, international oil markets could face severe disruption.
The Strait of Hormuz, a narrow waterway linking the Persian Gulf to the Arabian Sea, handles roughly 20% of the world’s daily oil consumption, including exports from Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq. Any interruption in shipping through this route can tighten global supply and trigger sharp volatility in crude prices, analysts say.
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Despite the challenges, Aramco is taking steps to maintain exports. The company is increasingly relying on its East-West pipeline, which moves crude from eastern Saudi oil fields to Yanbu on the Red Sea, bypassing the Strait of Hormuz. While the pipeline provides an alternative route, its capacity cannot fully replace the large volumes that typically transit the strait.
On the financial front, Aramco reported a net profit of about $93 billion for 2025, down from roughly $121 billion in 2024, as lower crude prices and weaker refining and chemical margins affected earnings. Total sales declined by approximately 7.2% year-on-year to $415 billion. Despite the drop, Aramco remains one of the world’s most profitable companies with robust cash flows.
Analysts note that while Aramco’s earnings performance is important, the immediate focus for energy markets is the evolution of geopolitical tensions in the region and the potential impact on global oil supply, particularly if disruptions in the Strait of Hormuz persist.
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