Saudi Aramco warns Hormuz disruption could devastate oil markets

Saudi Aramco warned that continued disruption to shipping in the Strait of Hormuz could have “catastrophic consequences” for global oil markets as the conflict involving Iran intensifies.

Speaking during an earnings call, Aramco CEO Amin H. Nasser said the war has already disrupted shipping and insurance sectors and could trigger wider impacts across industries such as aviation, agriculture and automotive manufacturing, News.Az reports, citing Reuters.

Nasser noted that global oil inventories are currently at a five-year low, warning that the ongoing crisis could accelerate the drawdown of reserves.

He stressed the importance of restoring normal shipping operations in the strategic waterway.

“There would be catastrophic consequences for the world’s oil markets the longer the disruption continues, with increasingly severe impacts on the global economy,” Nasser said.

He also confirmed that a small fire caused by an attack last week at Aramco’s Ras Tanura Refinery — the company’s largest domestic refinery — was quickly extinguished and brought under control. The facility is currently being restarted.

Earlier on Tuesday, Iran’s Islamic Revolutionary Guard Corps warned it would not allow “one litre of oil” to be exported from the Middle East if US and Israeli attacks continue. In response, US President Donald Trump warned that Washington would respond forcefully if Iran blocked oil shipments from the region.

Aramco also reported a 12 percent drop in annual profit, largely due to lower crude prices, and announced plans to repurchase up to $3 billion worth of shares in its first-ever buyback.

News.Az 

By Nijat Babayev