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Global Oil at Risk as Aramco Boss Warns Iran Conflict Could Be ‘Catastrophic’

Published by Samuel Ayomide on March 10th, 2026.

The President and Chief Executive Officer of Saudi Aramco, Amin H. Nasser, has warned that the ongoing conflict involving Iran could have devastating consequences for global oil markets if disruptions to supply routes continue.

Speaking on Tuesday during a media briefing to announce the company’s 2025 financial performance, Nasser described the current situation in the Middle East as one of the most serious challenges ever faced by the region’s oil and gas industry.

He emphasized that the reopening of the Strait of Hormuz is crucial to restoring stability in global energy markets. The strategic waterway normally carries about 20 percent of the world’s oil shipments but has been largely disrupted due to the escalating conflict.

According to Nasser, the ongoing crisis is already affecting multiple sectors beyond the energy industry.

“The disruption has triggered a chain reaction that is impacting shipping, insurance, aviation, agriculture, automotive production, and several other industries,” he said. “If the situation continues for a prolonged period, it could lead to severe consequences for global oil markets and the broader world economy.”

Oil prices have experienced sharp fluctuations amid concerns about supply shortages. Prices surged by roughly 30 percent earlier in the week before retreating following remarks by Donald Trump suggesting that the conflict might soon come to an end.

The current tensions escalated after the United States and Israel carried out airstrikes against Iranian targets on February 28. In response, Iran launched a series of drone and missile attacks targeting Gulf states allied with Washington.

Several energy facilities across the region have since come under attack. Among them is Aramco’s major oil complex in Ras Tanura, where operations were partially halted following strikes on nearby energy infrastructure.

In Bahrain, an oil installation in Al Ma’ameer was also struck, resulting in a fire and damage to the facility. The country’s state-owned energy firm, Bapco, subsequently declared force majeure, indicating that unforeseen circumstances could prevent it from meeting supply commitments.

Energy producers in Qatar and Kuwait have issued similar warnings as the regional conflict continues to threaten oil production and export operations.

Amid the geopolitical tensions, Aramco also reported a decline in its annual earnings. The company posted a net income of $93.38 billion in 2025, representing a 12.1 percent drop compared to $106.24 billion recorded in 2024.

Adjusted net income for the year stood at $104.65 billion, down from $110.29 billion in the previous year.

The company attributed the drop to higher global supply levels, economic headwinds, and falling oil prices influenced partly by increased production within the OPEC+ alliance.

Despite the decline in profits, Aramco announced plans to launch its first-ever share buyback programme, valued at up to $3 billion over the next 18 months, as part of efforts to strengthen shareholder value.

Nasser reiterated that restoring safe passage through the Strait of Hormuz remains essential to stabilizing energy markets and preventing further shocks to the global economy.