It looks like the Iran war may dangerously destabilise the global oil market. The Iran war threatens “catastrophic consequences” for the global oil market, the CEO of Saudi oil giant Aramco has warned.
“There will be catastrophic consequences for the world’s oil market. The longer the disruption goes on and the more drastic the consequences for the global economy,” Amin Nasser said, adding that it was “by far the biggest crisis” faced by the region’s oil and gas industry.
Nasser told an earnings call on Tuesday that the war had caused “a severe chain reaction” and “a drastic domino effect” beyond shipping, “on aviation, agriculture, automotive, and other industries.”
“Our disciplined capital allocation, combined with lower‑cost and highly reliable operations, drove strong financial performance in a year marked by price volatility,” Nasser said in the earnings release.
Speaking after Saudi Aramco reported full-year 2025 earnings that beat analysts’ estimate, Nasser warned: “With the current geopolitical crisis, global inventories, which are already at a five-year low, would see downwards at a faster rate.
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“Global spare capacity is mostly concentrated in this region, so it is absolutely critical that shipping resumes in the Strait of Hormuz.”
What is Aramco?
Saudi Aramco is the national petroleum and natural gas company of Saudi Arabia and one of the largest energy companies in the world. Founded in 1933 as a partnership between the Saudi government and American oil companies, it later became fully owned by the Saudi state and was renamed Saudi Aramco in 1988.
The company is responsible for exploring, producing, refining, and exporting oil and natural gas. It manages some of the largest proven crude oil reserves globally and plays a central role in the global energy market. Because of its massive production capacity and reserves, Saudi Aramco is often considered one of the most valuable companies in the world.
Headquartered in Dhahran, the company operates vast oil fields, refineries, pipelines, and petrochemical facilities both inside and outside Saudi Arabia. In 2019, Saudi Aramco went public through a historic stock market listing on the Tadawul, which briefly made it the world’s most valuable publicly traded company.
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Today, Saudi Aramco remains a key driver of Saudi Arabia’s economy and supposedly a major supplier of energy worldwide.
The situation in Iran highlights how geopolitical tensions can ripple through the global economy, particularly in sectors as interconnected as energy. Conflicts in major oil-producing regions can create uncertainty in supply chains, disrupt trade routes, and affect industries far beyond the immediate area, including aviation, agriculture, and manufacturing. These disruptions often amplify volatility in commodity prices and create challenges for both producers and consumers worldwide.
Such crises underscore the importance of resilient infrastructure and contingency planning.
Countries and companies that rely on energy imports may face sudden shortages or price spikes, emphasizing the need for diversified energy sources, strategic reserves, and efficient logistics. Similarly, energy producers must maintain disciplined operations, financial flexibility, and rapid response capabilities to navigate unforeseen disruptions without undermining long-term stability.