Aramco CEO says war could have ‘catastrophic consequences’ on oil markets

RIYADH: The head of energy giant Saudi Aramco on Tuesday warned the Middle East war could have “catastrophic consequences” on oil markets, while Qatar warned of global economic repercussions following attacks on energy infrastructure.

The oil-rich Gulf has borne the brunt of Iran’s attacks in response to US-Israeli strikes that sparked the Middle East war, with Tehran targeting US assets but also civilian infrastructure, including energy facilities and airports.

Aramco CEO and president Amin H. Nasser said it was vital to reopen the Strait of Hormuz, which normally carries about 20 percent of global oil supplies but has been closed by the ongoing war.

Oil prices have swung wildly over supply disruptions, rocketing 30 percent on Monday before plunging again on comments from US President Donald Trump that the war may soon end.

“The disruption has caused a severe chain reaction in not only shipping and insurance but there’s also a drastic domino effect on aviation, agriculture, automotive and other industries,” Nasser told a media call to announce Aramco’s 2025 earnings.

“There would be catastrophic consequences for the world’s oil markets the longer the disruption goes on, and the more drastic the consequences for the global economy.

“While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.”

The Iranian attacks have already forced state-owned QatarEnergy, one of the world’s largest producers of liquefied natural gas, to halt production last week and declare force majeure.

Energy producers in Kuwait made similar declarations, which are a warning that events beyond their control may lead them to miss export targets.

Qatar’s foreign ministry spokesman Majed al-Ansari warned that attacks on energy facilities “on both sides, are a dangerous precedent… it will cause repercussions throughout the world”.

He also condemned Iranian attacks on civilian infrastructure in Qatar and the wider Gulf.

Nasser was speaking as Aramco reported a 12.1 percent decline in net income in 2025 after higher supply, US tariffs and other economic headwinds weighed on revenues.

The Saudi giant, which launched a record initial public offering in 2019, also announced a first-ever share buyback programme of up to $3 billion over 18 months.

“It’s absolutely critical that shipping resumes in the Strait of Hormuz,” Nasser said.

Abu Dhabi attack

Aramco, the world’s biggest oil exporter and one of its most valuable companies, reported 2025 net income of $93.38 billion, down from $106.24 billion in 2024.

Stripping out exceptional items, adjusted net income was $104.65 billion in 2025 compared to $110.29 billion in 2024, a slide of 5.1 percent. Throughout last year, the oil alliance OPEC+ — of which Saudi Arabia is a key member — oversaw an increase in production, eroding prices.

The Middle East war has now severely destabilised supplies. Iran has fired at energy installations across the Gulf, including Aramco’s sprawling Ras Tanura facility, which halted some operations.

The massive complex on the Gulf coast is home to one of the Middle East’s largest refineries and is a cornerstone of the Saudi energy sector. Saudi oil fields have also been targeted.

On Tuesday, a drone attack caused a fire in an industrial zone in the emirate of Abu Dhabi that houses oil and energy infrastructure.

“Authorities in the Emirate of Abu Dhabi are responding to a fire at a facility within the Ruwais Industrial City, caused by a drone attack. No injuries have been reported so far,” the Abu Dhabi media office said in a statement on X.