Saudi Aramco cautioned that extended shipping interruptions in the Strait of Hormuz could severely destabilize global oil markets. The warning comes as the ongoing conflict in Iran continues to impact critical shipping routes, raising concerns among investors about supply security and wider economic consequences.
Aramco’s Chief Executive Amin Nasser stated that sustained disruption in shipping traffic through the Strait of Hormuz endangers not only oil markets, but could also create ripple effects across multiple industries—including shipping, insurance, aviation, agriculture, and automotive sectors. He pointed to worldwide oil stocks currently sitting at a five-year low, stressing that continued logistical hurdles would result in an accelerated drawdown of inventories.
Nasser emphasized the need to restore maritime operations in the strait promptly, warning that ongoing instability would only deepen the impact on the global economy.
Last week, Aramco’s largest domestic refinery at Ras Tanura was briefly affected by a minor fire following an attack. Nasser noted the incident was quickly managed, with operations now being restored.
The heightened tensions follow comments from Iran’s Revolutionary Guards, who declared they would block the export of oil from the Middle East if military attacks from the U.S. and Israel persisted. In response, President Donald Trump stated the United States would escalate its actions against Iran should such blockades occur.
Meanwhile, Aramco reported a full-year adjusted net income of $104.7 billion, characterizing the performance as strong despite fluctuating oil prices throughout the year.
For the fourth quarter, adjusted profit reached $25.1 billion, narrowly surpassing the consensus estimate of $24.8 billion collected by the company. In addition, Aramco revealed plans to initiate a share buyback program of up to $3 billion.
