Saudi Aramco’s chief executive has warned that ongoing Middle East hostilities pose a severe threat to global oil supplies, with the closure of the Strait of Hormuz risking “catastrophic consequences” for markets and the world economy.
Amin H. Nasser said the Strait, a critical chokepoint for approximately 20 per cent of global oil shipments, must be reopened immediately. His comments follow Iranian attacks on energy and civilian infrastructure across the Gulf region, which have disrupted production and exports. These strikes are part of a broader conflict that began with US-Israeli actions and Iran’s subsequent retaliation.
The disruption has triggered a “drastic domino effect” beyond the energy sector, impacting shipping, insurance, aviation, agriculture, and automotive industries, Nasser stated during a call to announce Aramco’s 2025 financial results. Oil prices have exhibited extreme volatility, surging 30 per cent before receding on speculation about a potential end to the conflict.
Qatar, a major LNG exporter, has already halted production at some facilities and invoked force majeure, a legal clause citing events beyond its control. Kuwaiti energy firms have made similar declarations. Qatar’s foreign ministry spokesperson warned that attacks on energy infrastructure set a “dangerous precedent” with worldwide repercussions, while also condemning strikes on civilian targets in the Gulf.
Nasser’s stark assessment came as Aramco reported a 12.1 per cent decline in annual net income for 2025, citing higher production from the OPEC+ alliance, US tariffs, and economic pressures. Net income for the year was $93.38 billion, down from $106.24 billion in 2024. Despite the earnings dip, the company announced its inaugural share buyback programme, worth up to $3 billion over 18 months.
The physical damage is tangible. Aramco’s key Ras Tanura refining complex has seen operations partially halted, and Saudi oil fields have been targeted. An attack on Monday caused a fire at Bahrain’s Al-Ma’ameer oil facility. On Tuesday, a drone strike ignited a fire in Abu Dhabi’s Ruwais Industrial City, though authorities reported no injuries and did not confirm damage to energy infrastructure.
The situation underscores the vulnerability of global energy flows. The Strait of Hormuz’s prolonged closure would amplify the current crisis, transforming a regional conflict into a worldwide economic emergency, according to industry leaders. Diplomatic efforts to secure the waterway and de-escalate are now critically urgent for energy security.
