The Iran war could have “catastrophic consequences” for global oil markets, Saudi Aramco CEO Amin Nasser has said, after the company’s profits dipped last year amid low oil prices.
Iran has largely closed the Strait of Hormuz, where around 20% of global oil flows would usually transit. Saudi Arabia has started cutting its oil output and is working to boost exports through an alternative Red Sea route, Bloomberg reported.
“There would be catastrophic consequences for the world’s oil market the longer the disruption goes on, and the more drastic the consequences for the global economy,” said Nasser. “While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.”
“Global spare capacity is mostly concentrated in this region, so it is absolutely critical that shipping resumes in the Strait of Hormuz.”
Iranian drones struck Aramco’s Ras Tanura oil refinery last week, causing a fire that temporarily halted its operations. The refinery is Saudi Arabia’s largest, with a capacity of more than 500,000 barrels each day.
Brent crude prices spiked to a high of over US$119 per barrel on Monday, but have since declined as U.S. President Donald Trump claimed the war was “very complete, pretty much”. Defense Secretary Pete Hegseth then said that today’s strikes on Iran would be the most aggressive yet.
Aramco’s income fell in 2025, it said. Adjusted net income was $25.06 billion last quarter, down from $25.55 billion year-over-year but above company-compiled estimates of $24.8 billion.
Full-year adjusted net income sank from $110.30 billion to $104.65 billion.
The average realised crude oil price was $64.10 per barrel last quarter, falling sharply from $70.10 in 2025’s third quarter. OPEC+ members raised output by around 2.9 million barrels per day during 2025.
The company also announced a share buyback of up to $3 billion across the next 18 months.
Saudi Aramco (TADAWUL: 2222) shares closed 0.8% lower at SAR26.90 (US$7.17). Its market capitalisation is SAR6.51 trillion (US$1.7 trillion).
