Saudi Aramco Posts 25% Profit Jump Amid Strait of Hormuz Disruption
AOL.com reported Sunday that Saudi Aramco CEO Amin Nasser warned of prolonged disruption to global oil markets as the company simultaneously posted a sharp earnings recovery. Aramco’s first-quarter profit climbed 25% to $32.5 billion, lifted by higher crude prices and an emergency rerouting of exports away from the troubled Strait of Hormuz.
Hormuz Closure Forces a Costly Workaround
Nasser confirmed that Aramco’s East-West Pipeline is now running at its maximum throughput of 7 million barrels per day. The artery cuts across Saudi Arabia from its eastern oil fields to the Red Sea, bypassing the strait entirely. Nasser said the route is “helping to mitigate the impact of a global energy shock.” The pipeline’s capacity, however, represents well under two-thirds of the company’s typical daily output. Aramco produced approximately 11.1 million barrels per day in the final quarter of 2025.
A Waterway That Moves a Fifth of Global Oil
The Strait of Hormuz has long been one of the most consequential chokepoints in global energy. Before hostilities broke out, roughly 20% of the world’s daily traded oil transited the waterway, alongside significant volumes of liquefied natural gas, fertilizers, and other petroleum products. Iran effectively assumed control of the strait after U.S. and Israeli forces struck the country on February 28. A subsequent U.S. naval blockade has further complicated access for commercial shipping.
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Brent Crude Pulls Back From War Highs
Brent crude, the international benchmark, traded around $103.91 per barrel on Sunday, a gain of roughly 2.6% on the day. That remains sharply elevated against the approximately $70 level recorded in late February before conflict began. At the peak of market panic, prices exceeded $119 per barrel. The partial retreat reflects both demand concerns and limited progress in restoring supply routes.
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Aramco’s Warning Clouds the Outlook
Despite the earnings rebound, Nasser’s language was cautious. He described the crisis as a “stark reminder” that dependable energy supply underpins the entire global economy. The comments carry added weight given that Aramco reported a 12% drop in full-year 2025 profit before the conflict began. The company said it is drawing on both its domestic infrastructure and its broader international network to manage the ongoing shock. Investors will be watching whether the pipeline workaround and elevated prices can sustain margins through the second quarter if the strait remains effectively closed.
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