Saudi Aramco reports profit decline and warns of Strait of Hormuz disruption

Saudi Aramco announced on Tuesday that its net profit for 2025 fell by 12.1% to $93.38 billion, down from $106.24 billion in 2024. CEO Amin Nasser attributed the decline to increased oil supply, US tariffs, and various economic obstacles. During an earnings call, Nasser warned that the ongoing disruption of shipping in the Strait of Hormuz, caused by conflict with Iran, could have catastrophic consequences for global markets. He noted that global oil reserves are at their lowest level in five years and face rapid depletion if the transit route remains blocked. The disruption is expected to negatively impact sectors including aviation, agriculture, and automotive industries. Additionally, Nasser confirmed that a recent drone attack caused a minor fire at the Ras Tanura refinery, which was quickly extinguished and is currently undergoing a restart. The company emphasized that the reopening of the Strait is critical to avoid broader economic fallout.