Saudi Aramco is currently unable to export oil from the Gulf region as the ongoing conflict in the Middle East disrupts shipping, according to a statement from the company’s CEO, Amin H. Nasser, on Tuesday. The disruption represents the most serious crisis faced by the region’s oil and gas sector in recent years, Nasser said.
Speaking during a media call following the release of Aramco’s 2025 financial results, Nasser warned that prolonged conflict could have “catastrophic consequences” for global oil markets. He noted that global inventories were already at a five-year low and that the crisis would accelerate their depletion. “There would be catastrophic consequences for the world’s oil markets the longer the disruption goes on, and the more drastic the consequences for the global economy,” Nasser stated. He estimated that approximately 180 million barrels of supply had already been disrupted.
Despite the inability to export from the Gulf, Aramco is meeting the majority of its customers’ needs, Nasser explained, by drawing on global inventories and utilizing the East-West pipeline. The pipeline, which transports crude to the Red Sea port of Yanbu, is expected to reach its full capacity of 7 million barrels per day in the coming days as customers reroute shipments. Aramco is currently directing close to 2 million barrels per day of the pipeline’s capacity to domestic refineries, which are net exporters of products.
Nasser indicated that even with the increased capacity of the East-West pipeline, approximately 350 million barrels of supply would be removed from the market. He emphasized the critical importance of resuming shipping through the Strait of Hormuz, noting that the majority of spare capacity is located in the region. “With the current geopolitical crisis, global inventories… would spot downwards at a faster rate,” he said.
A small fire at Aramco’s Ras Tanura refinery, the company’s largest domestically, was quickly extinguished last week following an attack, Nasser confirmed. The refinery is currently undergoing a restart.
Aramco reported a 12 percent drop in annual profit on Tuesday, primarily attributed to lower crude prices. The company also announced its first-ever share buyback program, valued at up to $3 billion.
The warnings from Aramco’s CEO come amid escalating tensions in the Middle East, with ongoing Iranian drone and missile attacks on Gulf states in response to U.S. And Israeli strikes. U.S. President Donald Trump has stated the U.S. Would respond forcefully to any attempts to halt oil flows through the Strait of Hormuz, but the situation remains volatile.
