Aramco Chief Warns Prolonged Closure of Strait of Hormuz Could Trigger Catastrophe

Saudi Aramco CEO Amin Nasser warned that ongoing disruptions to oil shipments through the Strait of Hormuz, controlled by Iran, could have catastrophic effects on global markets, Reuters reports.

Photo: commons.wikimedia.org by Cpl. Gary Jayne III, https://creativecommons.org/public-domain/pdm/

Strait of Hormuz

Largest Oil Crisis in History?

"The longer the disruption lasts… the more severe the consequences for the global economy will be,” Nasser said, describing the situation as the largest crisis the oil industry has faced.

He emphasized that any measures, including US Navy escort operations previously announced by Washington, that can help resume exports would be welcome.

"The only way to restore shipments is to end the fighting,” another high-ranking Gulf energy official added.

Production Cuts in Gulf States

Meanwhile, leading oil producers in the Middle East have already reduced production by 20-25 percent compared to February levels. According to Reuters:

• Iraq's output fell by 2.9 million barrels per day
• Saudi Arabia reduced production by 2-2.5 million barrels per day
• UAE production dropped by 500-800 thousand barrels per day

The cuts have intensified concerns over global energy security amid ongoing regional tensions.