Aramco profit drops 12% as Hormuz disruption threat grows

Saudi Aramco reported a 12% decline in annual profit for 2025, as lower oil prices weighed on earnings even before the latest regional escalation pushed energy markets into crisis mode. The company said net income fell to $93.4 billion in 2025, down from $106.2 billion a year earlier. Revenue also declined 7.2% to $415.8 billion. The results came at an unusually tense moment for the global oil industry. Aramco, the world’s largest oil exporter, released its earnings as conflict-linked disruption around the Strait of Hormuz intensified concern over crude flows, tanker traffic, and spare production capacity. Amin Nasser warns of severe supply consequences Aramco chief executive Amin Nasser said prolonged disruption in the region could have “catastrophic consequences” for global oil markets if traffic through the Strait of Hormuz does not normalize. Reuters reported that Nasser described the current disruption as the worst crisis the region’s oil and gas sector has faced, while warning that the consequences would stretch beyond energy into industries such as aviation, agriculture, and automotive manufacturing. Reuters also reported that Aramco estimates the disruption has already affected roughly 180 million barrels, according to Nasser’s remarks carried by market coverage of the company’s briefing. At the same time, he said the kingdom’s East-West pipeline, which can move crude to the Red Sea, is expected to operate at its full capacity of about 7 million barrels per day within days as customers reroute shipments. “The consequences for global oil markets could be catastrophic” if disruption through Hormuz persists, Nasser said, according to Reuters. East-West pipeline offers relief, but not a full solution The East-West pipeline is central to Saudi Arabia’s contingency planning because it allows crude to bypass the Gulf and move directly to the Red Sea export terminal at Yanbu. That route helps Aramco maintain part of its supply commitments, but it does not fully offs