Amir Muhammad Khan
RIYADH: The Middle East conflict has triggered what Saudi oil giant Saudi Aramco describes as the world’s largest energy shock, with recovery in global markets likely to extend into 2027 even if the Strait of Hormuz blockade is lifted soon, the company’s chief executive has warned investors.
A day earlier, Aramco reported a more than 25% rise in net profit for the first quarter of 2026 compared with the same period last year, driven by higher oil prices as exports remain constrained due to disruptions in the Strait of Hormuz. “The energy supply shock that began in the first quarter is the largest the world has ever experienced,” said Aramco president and chief executive Amin H Nasser.
He added that even if the Strait of Hormuz reopened immediately, global oil markets would still require months to rebalance. If the disruption were to continue for several more weeks, he warned, normalization could stretch into 2027.
Crude oil prices surged during the first quarter, rising from the mid-$60s in early February to more than $100 per barrel by March, as the shutdown of the key maritime route by Iran triggered a global energy crisis.
Nasser said the market had experienced an “unprecedented supply loss” of around a billion barrels, estimating the figure at roughly 880 million barrels. He warned that if disruptions continue at the current pace, global supply would decline by about 100 million barrels for each week the Strait of Hormuz remains closed.
