Saudi oil giant Aramco reported a sharp rise in first-quarter earnings on Sunday as geopolitical tensions in West Asia, including the US and Iran, continued to drive volatility in global energy markets. The company said disruptions caused by the ongoing Iran war boosted crude prices and strengthened its financial performance during the quarter. The state-owned energy major, headquartered in Dhahran, announced that its profit jumped 25 per cent compared to the same period last year.
The increase came as oil supply concerns intensified following disruptions around the Strait of Hormuz, one of the world’s most critical shipping routes for crude exports.
Global benchmark Brent crude also moved higher on Sunday, climbing 2.58 per cent to $103.91 per barrel. Although prices remain below the wartime highs of more than $119 per barrel, crude continues to trade significantly above the nearly $70 levels seen before the conflict escalated in late February.
The Iran war has heavily affected shipping movements through the Strait of Hormuz, forcing energy companies to adjust transportation routes and export strategies. Aramco said it managed to reroute a portion of its oil exports through alternative infrastructure in order to avoid disruptions in the strategically important waterway.
The company relied heavily on its East-West Pipeline, a major energy corridor that transports crude from Saudi Arabia’s eastern oil fields to ports on the Red Sea. This allowed exports to continue despite instability in the Gulf region. The ongoing conflict has raised concerns among global markets about the possibility of prolonged supply disruptions, which could continue to support elevated oil prices in the months ahead.
Aramco Pipeline Operating At Full Capacity
Aramco President and CEO Amin Nasser highlighted the importance of the company’s domestic pipeline network in stabilising exports during the crisis. According to Nasser, the East-West Pipeline is currently functioning at maximum operational levels, carrying nearly 7 million barrels of oil per day across Saudi Arabia.
Nasser said the pipeline is “helping to mitigate the impact of a global energy shock and providing relief to customers.”
Energy analysts believe the pipeline has become increasingly important as shipping risks in the Gulf region remain elevated. The infrastructure has helped Saudi Arabia maintain steady crude deliveries despite mounting geopolitical uncertainty.
