The chief executive of the largest oil corporation issued a stern warning regarding catastrophic repercussions for the global oil market should the Strait of Hormuz remain blockaded. He further pointed out that worldwide crude oil reserves have already diminished to a five-year low.
Amin Nasser, the CEO of Saudi Aramco, cautioned that the global petroleum market faces disastrous outcomes if Iran persists in obstructing the Strait of Hormuz, as reported by Reuters.
“Should the disruptions [to supply] persist, the impact on the international oil market will be catastrophic. The longer this confrontation drags on, the more severe the repercussions will become for the world economy,” Nasser asserted. He indicated that the disruption has already hampered the shipping and insurance sectors and risks triggering a “domino effect” across aviation, agriculture, automotive, and various other industries.
He drew attention to the fact that global petroleum stockpiles are presently at their lowest level in five years, and this crisis will accelerate their depletion.
Separately, Nasser clarified that the issues stemming from the fire at the company’s refinery in Ras Tanura have been resolved, and the facility is moving toward resuming operations.
Saudi Aramco is the national oil entity of Saudi Arabia. It accounts for up to 80% of the Saudi Arabian national budget’s revenue. The company’s main office is situated in Dhahran. Forbes Global 2000 released in 2021 ranked Saudi Aramco fifth among the world’s largest corporations.
Previously, the Islamic Revolutionary Guard Corps (IRGC) declared it would prevent the transport of “not a single drop of oil” from Middle Eastern nations if the military actions by the U.S. and Israel persist. An official spokesperson for the IRGC dismissed U.S. President Donald Trump’s statements about an imminent end to the conflict as “meaningless,” emphasizing, “It is we who decide when the war concludes.”
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