Aramco Warns Global Oil Market Faces ‘Catastrophic’ Shock if Strait of Hormuz Remains Closed
Saudi energy giant urges swift reopening of vital maritime chokepoint as war-related disruptions threaten nearly a fifth of global oil supply.
Saudi Aramco has warned that global oil markets could face catastrophic consequences if shipping through the Strait of Hormuz does not resume soon, as the escalating regional conflict continues to disrupt one of the world’s most important energy routes.
The company’s chief executive, Amin Nasser, said the prolonged shutdown of tanker traffic through the narrow waterway could trigger severe shocks across global energy markets and the wider economy.
The strait, located between Iran and Oman, normally carries roughly one fifth of the world’s oil supply, making it a critical artery for international trade.
Disruptions linked to the conflict have effectively halted large volumes of oil shipments from the Persian Gulf, removing an estimated twenty million barrels per day from global supply chains and sending shockwaves through energy markets.
Despite the disruption, Saudi Arabia has sought to stabilize exports by redirecting crude through alternative infrastructure.
Saudi Aramco has moved to route oil across the kingdom via its East–West pipeline, transporting crude from fields in the Eastern Province to the Red Sea port of Yanbu so that tankers can bypass the Gulf.
The pipeline system allows Saudi Arabia to maintain a substantial share of its exports even during periods of maritime disruption, and the company has indicated it could restore around seventy percent of shipments within days through this route.
Nevertheless, Aramco executives warn that such measures can only mitigate part of the impact if the crisis persists.
The company described the current situation as one of the most severe disruptions faced by the region’s oil and gas industry, noting that emergency reserves and rerouted shipments can provide only temporary relief.
Energy markets have already experienced sharp volatility since the conflict intensified.
Oil prices briefly surged above one hundred dollars per barrel amid fears of supply shortages before retreating after signals that diplomatic efforts and military developments could lead to de-escalation.
Governments and international energy agencies are closely monitoring the crisis and considering contingency measures to maintain supply stability.
Strategic reserves held by major economies could be released if disruptions continue, though no coordinated action has yet been announced.
Saudi Arabia, the world’s largest oil exporter, has emphasized its commitment to maintaining reliable supply for global markets.
Officials say restoring normal shipping through the Strait of Hormuz remains essential for stabilizing energy flows and preventing wider economic disruption.
With the conflict still unfolding, industry leaders warn that the longer the strait remains restricted, the greater the risk that energy markets could face prolonged instability affecting economies around the world.