Aramco warns of oil market ‘catastrophe’ unless strait of Hormuz reopens soon

Aramco warned of potential "catastrophic consequences" for global oil markets if the Strait of Hormuz remains blocked due to the ongoing US-Israeli conflict with Iran. The disruption, which began 11 days ago, has halted approximately 20 million barrels of oil daily, causing prices to surge. While Aramco aims to maintain 70% of its usual crude exports by utilizing a pipeline to the Red Sea, the company's CEO emphasized the severe economic repercussions of a prolonged blockage. The Strait of Hormuz typically sees 100 tankers daily, carrying a fifth of the world's oil and liquefied natural gas, but traffic has significantly decreased due to threats. Aramco is currently meeting customer needs by tapping into stored reserves outside the Gulf region, but these are not sustainable long-term.

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