Aramco CEO Warns of Catastrophic Global Oil Market Collapse if Strait of Hormuz Shipping Blockade Persists

Saudi Aramco’s Amin Nasser warns of a global economic crisis if the Strait of Hormuz remains blocked, as the company reports a 12% profit drop for 2025.

By: AXL Media

Published: Mar 10, 2026, 4:42 AM EDT

Source: The information in this article was sourced from APA

The Growing Risk of a Global Energy Breakdown

Saudi Aramco, the world’s leading oil exporter, issued a stark warning today regarding the potential for a total collapse of international energy markets. Speaking during an annual earnings call, CEO Amin Nasser stated that the "catastrophic consequences" of the ongoing Iran war would extend far beyond the energy sector if shipping through the Strait of Hormuz is not immediately resumed. Nasser emphasized that the blockade has already paralyzed the shipping and insurance industries, but the "domino effects" are now threatening to destabilize global aviation, agriculture, and automotive manufacturing. The warning comes as the Strait, which handles approximately one-fifth of the world's daily oil and LNG supply, remains a primary flashpoint in the conflict between the U.S.-Israeli coalition and Tehran.

Inventory Levels Hit Critical Five-Year Lows

The timing of the shipping disruption is particularly dangerous due to the current state of global reserves. Nasser noted that international oil inventories have already plummeted to a five-year low, leaving the market with almost no buffer to absorb prolonged supply shocks. Without the consistent flow of crude through the Persian Gulf, the world is facing an accelerated drawdown of these remaining stocks. The Aramco chief argued that the longer the disruption continues, the more "drastic" the permanent damage to the global economy will become. This supply crunch has already seen Brent crude prices surge toward the $120 mark earlier this week before volatile trading saw a slight retreat following rumors of a potential G7 strategic reserve release.

Recovery Efforts at the Ras Tanura Refinery

Domestically, Aramco is working to restore its primary refining capacity following direct military interference. Nasser confirmed that a small fire broke out at the Ras Tanura refinery—Saudi Arabia’s largest domestic processing facility—following a drone attack last week. While the blaze was quickly contained by emergency crews and resulted in only minor shrapnel damage, the facility was temporarily shut down as a security precaution. The CEO stated that the refinery is currently in the process of being restarted, but the incident has underscored the vulnerability of Saudi energy infrastructure to the escalating drone and missile volleys currently characterizing the regional wa...