Global Energy Shock From Iran War May Extend Till 2027: Saudi Aramco Chief

Saudi Arabia has used the East-West pipeline at its maximum capacity of 7 million barrels per day to deliver oil despite the Hormuz blockade.

Iran's attacks during the war targeted civilian energy infrastructure in Saudi Arabia, including facilities in Riyadh, the Eastern Province and Yanbu.

"The energy supply shock that began in the first quarter is the largest the world has ever experienced," said Amin H. Nasser. He noted that even if the Strait of Hormuz opens immediately, it will take months to rebalance; if opening is delayed by a few weeks, normalisation could last into 2027.

Aramco announced a net profit rise of more than 25% in the first quarter of 2026 compared to the same period last year, fueled by higher oil prices as exports remain blocked in the Strait of Hormuz.

US President Donald Trump rejected Tehran's response to Washington's proposal as 'totally unacceptable'.

US-Iran talks failed to produce a lasting deal following a truce reached in April 2026.

Losses were partly offset by flows bypassing Hormuz, the release of strategic government petroleum reserves, and the East-West pipeline, which Saudi Arabia has used at up to 7 million barrels per day.

The market faced an unprecedented loss of about a billion barrels of oil, with Nasser citing roughly 880 million barrels. If disruptions continue at the current rate, the market could lose about 100 million barrels per week while the Strait remains closed.

Crude prices jumped to more than $100 a barrel in March as Iran's shutdown of the Strait of Hormuz sparked a global energy crisis.

The energy supply shock began in the first quarter of 2026, with crude prices around the mid-$60s per barrel in early February as the crisis began to unfold.