Aramco CEO warns of ‘catastrophic consequences’ for oil markets amid Hormuz disruption

The disruption in the Strait of Hormuz could have “catastrophic consequences” for global oil markets if it persists, the chief executive of Saudi Aramco warned while discussing the company’s fourth-quarter and full-year 2025 results.

Speaking during the earnings call, Amin H. Nasser described the situation as the most serious crisis the region’s oil and gas industry has faced, highlighting 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 warning comes as tensions in the Middle East raise concerns about the security of the Strait of Hormuz, one of the world’s most critical oil transit routes.

Why is the Strait of Hormuz so critical for global oil supply?

The Strait of Hormuz is a narrow waterway connecting the Persian Gulf to the Arabian Sea and is widely regarded as the world’s most important energy chokepoint.

Around a fifth of the world’s oil consumption typically passes through the route each day, including shipments from major producers such as Saudi Arabia, the UAE, Kuwait and Iraq.

Any disruption to tanker traffic can therefore tighten global oil supplies and trigger volatility in energy markets.

Nasser said the ongoing tensions represent the “biggest crisis the region’s oil and gas industry has faced”, stressing the scale of the potential impact on the global energy system.

How is Aramco managing oil exports amid the disruption?

Despite the challenges, Aramco said it is taking steps to ensure that supplies to customers continue.

The company is using its East-West pipeline to transport crude oil from fields in eastern Saudi Arabia to the Red Sea port of Yanbu. The route allows shipments to bypass the Strait of Hormuz entirely.

While the pipeline provides an important alternative export channel, analysts note that its capacity cannot fully replace the volumes that normally transit through the strait.

How did Aramco perform financially in 2025?

Aramco’s warning came alongside the release of its financial results for the year ended December 31, 2025.

The company reported net profit of about $93 billion for calendar year 2025, down from roughly $121 billion in 2024, as lower crude prices and weaker refining and chemicals margins weighed on earnings.

Revenue also fell, with total sales declining about 7.2% year-on-year to roughly $415 billion as lower crude and chemical prices weighed on the company’s topline.

Even with the decline, Aramco remains among the world’s most profitable companies and continues to generate substantial cash flows.

For energy markets, however, the immediate focus may lie less on the company’s earnings and more on the trajectory of the geopolitical tensions in the region.