Saudi Aramco Posts Higher Profits as Iran War Reshapes Gulf Oil Flows

Saudi Aramco posted stronger quarterly profits despite the ongoing US-Iran conflict, AOL.com reported Sunday, with the kingdom’s east-west pipeline allowing the oil giant to keep exports flowing. The Strait of Hormuz remains effectively impassable, making overland routes critical to the global crude supply.

Brent Crude Climbs as Hormuz Stays Shut

Oil prices continued their upward march this week. Brent crude traded above $111 a barrel, up sharply from roughly $109 at Monday’s London equity close. Qatar has warned of a possible “frozen conflict” scenario in the Gulf. Peace negotiations between Washington and Tehran appear stalled, leaving shipping lanes through the strait severely disrupted.

The closed waterway has made pipeline infrastructure the decisive factor separating producers who can export from those who cannot. Aramco’s ability to route oil westward across Saudi Arabia has emerged as a significant operational advantage.

Also Read: BP Posts Surprise Profit Jump as Oil Prices Surge on Gulf Crisis

UAE Departure Adds New Pressure to OPEC

The wider energy landscape shifted further this week after the United Arab Emirates announced it would exit OPEC and OPEC+ next month, ending nearly six decades of membership. The UAE cited a need to meet long-term global energy demand following heavy investment to expand its own production capacity.

Analysts were divided on the immediate impact. Michael Brown at Pepperstone described the timing as the real surprise, noting that the substance of the move had long been anticipated. He argued that with the Hormuz strait still closed, the fundamental bottleneck remains shipping rather than production capacity. The UAE’s ability to actually raise output in the current environment is, in his words, somewhere between difficult and impossible.

Saul Kavonic, head of energy research at MST Financial, told the BBC the departure signals a deeper structural fracture. He called it the beginning of the end for OPEC, noting the bloc loses roughly 15% of its capacity along with one of its historically most compliant members.

Also Read: Qatar Warns of Frozen Conflict Risk as US-Iran Talks Stall

BP Benefits, But Broader Markets Wobble

Aramco’s results land alongside a strong earnings beat from BP, which saw first-quarter underlying profit more than double year-on-year to $3.2 billion. The London-based major far exceeded analyst consensus of $2.67 billion, driven directly by elevated crude prices.

Equity markets were more mixed. London’s FTSE 100 edged marginally higher, while European indices in Paris and Frankfurt both closed lower. US tech stocks faced heavier pressure, with the Nasdaq falling 1.4% on separate concerns about AI revenue growth at major technology firms.

Treasury yields crept upward, with the US 10-year note reaching 4.36%. Sterling softened slightly against the dollar, trading near $1.3505.

Read Next: Gulf Conflict Pushes Brent Above $110 as Hormuz Shipping Collapses