Saudi Arabia's Aramco, the world's top oil exporter, said today that there would be "catastrophic consequences" for the world's oil markets if the Iran war continues to disrupt shipping in the Strait of Hormuz.
The disruption has not only upended the shipping and insurance sectors but also promises to have drastic domino effects on aviation, agriculture, automotive and other industries, Aramco CEO Amin Nasser told reporters on an earnings call.
Nasser noted global inventories of oil were at a five-year low and said the crisis will lead to drawdowns at a faster rate, adding that it was critical that shipping in the strait resumed.
"There would be catastrophic consequences for the world's oil markets and the longer the disruption goes on, and the more drastic the consequences for the global economy," he said.
Nasser also said a small fire from an attack last week on Aramco's Ras Tanura refinery, its largest domestically, was quickly extinguished and brought under control, adding that the refinery was in the process of being restarted.
Iran's Revolutionary Guards said today they would not allow "one litre of oil" to be shipped from the Middle East if US and Israeli attacks continue, prompting a warning from President Donald Trump that the US would hit Iran much harder if it blocked exports from the vital energy-producing region.
His comments come after Aramco reported a 12% drop in annual profit mainly due to lower crude prices. It also announced it would repurchase up to $3 billion worth of shares in its first-ever buyback.
The buyback programme will be conducted over the next 18 months. Until now, the company has relied on its massive dividend payouts to reward shareholders.
The results come at a highly volatile time for global oil markets as the US-Israeli war on Iran has led to a near-closure of the Strait of Hormuz and has forced several regional producers to curb output.
Brent crude, which surged to near $120 yesterday, is trading around $93 today.
Aramco reported $93.4 billion in net income for 2025, below an LSEG consensus estimate of $95.6 billion.
For the fourth quarter, net profit tumbled 20.5% to nearly $17.8 billion on higher operating costs, marking its 12th consecutive quarter of year-on-year profit decline.
Aramco confirmed paying a base dividend of $21.1 billion for the fourth quarter and $219m in performance-linked dividends, a mechanism calculated based on free cash flow introduced following bumper profits in 2022 following the Ukraine war.
Total dividends paid for the year were $85.5 billion, down from $124 billion in 2024.
Aramco has long been a cash cow for the Saudi state, which relies on fossil fuels for more than half of government revenues. The kingdom directly holds nearly 81.5% of the company and its sovereign investor, the Public Investment Fund, holds another 16%.
Total revenue for the year fell 7.2% to $415.8 billion, on weaker prices for crude oil, as well as refined and chemical products.
The company's gearing ratio - a measure of indebtedness - dropped to 3.8% at the end of 2025, down from 4.5% at the end of 2024.
