Saudi Aramco warns the Iran conflict could disrupt global oil supply, pushing prices higher and impacting shipping, aviation, and global trade

11 March 2026: Saudi Aramco has issued a stark warning that the ongoing Iran conflict could trigger far-reaching disruptions in global oil markets and ripple through the world economy if tanker traffic through the Strait of Hormuz remains blocked.

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Aramco Chief Executive Officer Amin Nasser described the situation as unprecedented for the region’s energy sector during an earnings call on Tuesday, noting that the narrow shipping corridor normally transports roughly 20% of global daily oil supplies.

“There would be catastrophic consequences for the world’s oil markets, and the longer the disruption goes on, the more drastic the consequences for the global economy,” Nasser said.

The crisis is already affecting sectors beyond energy, including shipping, aviation, agriculture, and automotive manufacturing, as higher fuel costs and supply chain interruptions ripple worldwide.

Oil prices surged sharply at the start of the week, with Brent Crude nearing $120 per barrel, before easing to around $92 after former U.S. President Donald Trump suggested a resolution could be possible.

Trump added that the United States would respond decisively if Iran halts oil exports and indicated that the U.S. Navy might escort commercial vessels through the Gulf.

Aramco confirmed that exports from Gulf terminals are currently constrained, forcing the company to rely on stored oil and alternative routes, including the East-West pipeline to the Red Sea port of Yanbu, which can transport up to seven million barrels per day.

Despite these measures, Nasser warned that disruptions could still remove approximately 350 million barrels from global markets, a particularly acute concern given five-year-low global oil inventories.

The company also reported a small fire at its Ras Tanura refinery, Saudi Arabia’s largest, caused by an attack last week. The blaze was quickly contained, and the facility is in the process of restarting operations.

Despite geopolitical pressures, Aramco released its latest financial results, showing a 12% drop in annual profit attributed largely to earlier crude price declines.

The company also announced a $3 billion share buyback, its first ever, to return value to shareholders.

Analysts warn that the Iran conflict underscores the world’s reliance on Middle Eastern oil flows and the strategic vulnerability of the Strait of Hormuz.

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Industry leaders stress that diplomatic solutions remain the most effective way to restore stability and safeguard global energy supply.