Aramco sees ‘catastrophic consequences’ for oil markets if Hormuz strait remains blocked

Saudi Arabia’s Aramco, the world’s top oil exporter, said on Tuesday there would be “catastrophic consequences” for the world’s oil markets if the Iran war continues to disrupt shipping in the Strait of Hormuz. Oil shipments have been largely blocked from using the shipping artery, where normally roughly 20% of the world’s oil would pass through daily. Iran’s Revolutionary Guards said on Tuesday they would not allow “one litre of oil” to be shipped from the Middle East if U.S.

and Israeli attacks continue. FILE – Aramco’s President and CEO Amin Nasser attends the 56th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 20, 2026. [File photo: Reuters/Denis Balibouse] “There would be catastrophic consequences for the world’s oil markets and the longer the disruption goes on … the more drastic the consequences for the global economy,” Aramco CEO Amin Nasser told reporters on an earnings call.

“While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.” The crisis has not only upended the shipping and insurance sectors, but it also promises to have drastic domino effects on aviation, agriculture, automotive and other industries, he added. Global crude benchmark Brent, which rocketed to a more than three-year high of nearly $120 a barrel on Monday, was trading around $92 on Tuesday following comments by U.S. President Donald Trump predicting the war could end soon.

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Trump, however, warned that the U.S. would hit Iran much harder if it blocked exports from the vital energy-producing region. He has also said the U.S.

Navy could escort ships in the Gulf to guarantee safe passage. But the Navy’s capacity to do that is unclear, with some vessels already engaged in strikes against Iran and shooting down its missiles. Asked about U.S.

Navy escorts and whether they were possible on the scale required, Nasser said there are sizable volumes involved, adding that Aramco’s customers assume the risk of delivery. “Of course, we would support any actions or measures that would help to deliver our products to our customers, to the global market,” he said.

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