Saudi Aramco's president and chief executive has warned of “catastrophic consequences” for global oil markets if the Strait of Hormuz disruption continues.
The world's largest oil exporter said it was rerouting crude exports through a pipeline to its Red Sea terminal.
“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,” Amin Nasser told reporters over an earnings call on Tuesday.
He added that the East-West Pipeline is the only export route available. Aramco is using it to pipe its flagship Arab Light and Extra Light grades to buyers.
The pipeline, which spans the Arabian Peninsula, has a total capacity of five million bpd. In 2019, Aramco converted some natural gas liquid pipelines to temporarily transport seven million bpd of crude.
Mr Nasser confirmed that the pipeline was currently handling seven million bpd of the country’s crude destined for export markets. “We are doing our best to meet the majority of our customers' requirements under the current circumstances,” he said.
His comments came as Aramco reported that net income attributable to shareholders fell by 11.6 per cent annually to 348.04 billion Saudi riyals ($92.81 billion) mainly due to “the impact of lower revenue and other income related to sales”.
This was partially offset by lower operating costs and lower income taxes and zakat driven by lower taxable income, the company said in statement to the Tadawul, where its shares trade.
The company also raised its quarterly base dividend by 3.5 per cent to $21.9 billion, marking the fourth consecutive annual increase.
Ras Tanura, Saudi Arabia's largest refinery, remains shut after two separate drone strikes last week. Drones were also intercepted over the Shaybah field near the Abu Dhabi border over the weekend. The offshore Berri field sustained minor damage on Saturday. Shaybah and Berri have a combined capacity of around 1.5 million barrels per day.
Mr Nasser said Aramco has contingency plans in place to ensure continued customer delivery, including using global storage hubs.
While the Strait of Hormuz has not been officially closed, attacks on tankers and high insurance costs have halted traffic. Iran's Islamic Revolutionary Guards Corps said on Tuesday that it would not allow “one litre of oil” to be shipped from the region if the US and Israel continued their strikes on Iran. The warning followed US President Donald Trump's comments that the conflict might be heading for de-escalation.
Eight supertankers have loaded from Red Sea facilities this month, putting shipments on pace for a record, according to tanker tracking data compiled by Bloomberg.
Pakistan, which relies on oil imports from the Middle East, has requested that cargoes are dispatched from the Red Sea terminal at Yanbu. Because of recent events, Aramco has also raised its main crude grade price for Asian buyers in April by the most since August 2022.
Oil touched nearly $120 a barrel on Monday before easing after Mr Trump said the conflict might end soon. The UAE and Kuwait, which depend on the Strait of Hormuz to sell crude, have also begun reducing output as the disruption widens.
Aramco’s 2025 fourth-quarter net income fell more than 20 per cent annually to 66.6 billion riyals, as average realised oil prices during the period slipped to $64.10 per barrel from $73.1 per barrel. Aramco shares rose 2 per cent in Riyadh on early trade.
