The disruption of shipping through the Strait of Hormuz could have “catastrophic consequences” for global oil markets if it continues, the chief executive of Saudi Aramco Amin H. Nasser warned while discussing the company's latest financial results.
According to media reports, speaking during the earnings call, Aramco CEO Amin H. Nasser described the situation as the most serious crisis the region's oil and gas industry has faced, underlining the risks to global energy supply chains.
“If shipping through the Strait of Hormuz does not resume normally, the consequences for global oil markets could be catastrophic,” Nasser said.
The remarks come as escalating tensions in the Middle East raise concerns over the security of the Strait of Hormuz, one of the world's most critical oil transit routes.
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Why the Strait of Hormuz matters
The Strait of Hormuz is a narrow waterway linking the Persian Gulf to the Arabian Sea, and is widely regarded as the most important energy chokepoint globally.
Roughly 20% of the world's daily oil consumption typically passes through the route, including shipments from major producers such as Saudi Arabia, United Arab Emirates, Kuwait, and Iraq.
Any interruption to tanker movements through the strait can quickly tighten global supply and trigger volatility in crude prices.
Nasser said the current tensions represent the “biggest crisis the region's oil and gas industry has faced,” highlighting the scale of potential disruption to the global energy system.
How Aramco is maintaining exports
Despite the challenges, Aramco said it is taking steps to maintain oil supplies to customers.
The company is using its East-West pipeline, which transports crude from oil fields in eastern Saudi Arabia to the Yanbu on the Red Sea. This route allows shipments to bypass the Strait of Hormuz altogether. However, analysts note that while the pipeline provides an important alternative export route, its capacity cannot fully replace the large volumes that typically move through the strait.
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Aramco's financial performance in 2025
The warning from Aramco's CEO came alongside the release of the company's financial results for the year ended December 31, 2025. Aramco reported net profit of about $93 billion for 2025, down from roughly $121 billion in 2024, as lower crude prices and weaker margins in refining and chemicals weighed on earnings.
Media reports said that revenue also declined, with total sales falling about 7.2% year-on-year to roughly $415 billion, reflecting softer crude and chemical prices.
Despite the decline, Aramco remains one of the world's most profitable companies and continues to generate strong cash flows. For energy markets, however, the immediate focus may be less on Aramco's earnings and more on how geopolitical tensions in the region evolve in the coming weeks.
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