Saudi Aramco warns of massive oil loss as Strait of Hormuz stays closed

Chief Executive Amin Nasser said the world is losing more than 100 million barrels of oil each week while the Strait of Hormuz remains shut, with daily losses of about 11 million barrels of liquid hydrocarbons. Oil flows through the strait have fallen to under 10 % of pre‑Iran‑war levels, preventing roughly 2.6 billion barrels from reaching vital sectors. The Saudi East‑West pipeline and global stockpiles have limited the net shortfall to about 1.8 billion barrels. At the crisis peak, Asian crude imports fell by around six million barrels per day, and replenishing the depleted stocks would take roughly 18 months at a rate of 2.1 million barrels per day even if the strait reopened.

Nasser emphasized that Aramco will continue exporting about five million barrels per day and that recent Red Sea attacks have not materially affected its volumes. The company is preparing emergency plans tied to the Red Sea, including possible expansion of the East‑West pipeline and use of alternative routes such as Bab al‑Mandab, the Suez Canal, the Sumed pipeline and the strait itself. While July attacks on facilities could cause interruptions, Aramco claims it can restore operations six times faster than peers.

In its second‑quarter results, Aramco reported a 42 % year‑on‑year profit rise to 121.5 billion riyals, with revenue up 19 % to 450.77 billion riyals, driven by higher prices for refined products, chemicals and crude oil.