Aramco CEO Amin Nasser warns the prolonged closure of the Strait of Hormuz could trigger a catastrophic global oil market crisis.
Aramco: ‘the gravest crisis the region’s oil industry has ever faced’
The prolonged closure of the Strait of Hormuz could have catastrophic consequences for global oil markets. This was stated by Amin Nasser, CEO of the Saudi state oil company Aramco, during a press conference following the publication of its 2025 results.
The Iranian Revolutionary Guard Corps stated that “not a single liter of oil” would transit from the Middle East if attacks by the United States and Israel were to continue. “The longer the disruption lasts, the heavier the repercussions for the global economy,” the Aramco CEO said. “While we have faced several disruptions in the past, this is by far the gravest crisis the region’s oil and gas industry has ever experienced.”
Nasser explained that the crisis has had a very negative effect on shipments and insurance. Brent crude had surged to over three-year highs on Monday, March 9, nearing 120 dollars a barrel, before falling to $92 after Trump’s impromptu statement about the possible end of hostilities with Iran.
Trump warned that the United States is ready to hit the country much harder if Tehran continues to block exports through the Strait of Hormuz. The President also stated that the US Navy could escort cargo ships in the Gulf to ensure their safe passage. However, almost all US naval units are already engaged in offensive operations against Iran or in missile defense for the US fleet and its allies in the region.
Aramco and production cuts
Saudi Arabia has accelerated shipments from the Red Sea, but analysts explain that this would not be enough to offset the closure of Gulf routes. According to sources close to Aramco cited by Bloomberg, Saudi Arabia has already cut daily production by a volume ranging between 2 and 2.5 million barrels. Specifically, Saudi Aramco is said to have reduced activity at two major fields, Safaniya and Zuluf, to avoid saturating storage tanks, given that sea exports are almost entirely paralyzed.
Other countries in the region have also reduced output due to the inability to ship crude oil: the United Arab Emirates by 500,000-800,000 barrels per day; Kuwait by 500,000 barrels; and Iraq by 2.9 million barrels. It is worth noting that restoring production levels is not a rapid operation.
Facing the risk of a global energy crisis and a surge in inflation, G7 Finance Ministers and the International Energy Agency are considering a coordinated release of strategic emergency oil reserves to stabilize markets.
