Consequences for global oil markets could be 'catastrophic' if Hormuz closure continues, Aramco chief says

Aramco's CEO warned that a prolonged closure of the Strait of Hormuz could have 'catastrophic' consequences for global oil markets, remarks made after the company released its 2025 results. A sustained disruption would tighten seaborne oil supply, raise crude price risk premia and pressure energy-intensive sectors and inflation — review oil exposure, energy positions and potential hedges.

Analysis

Aramco's CEO warned that a prolonged closure of the Strait of Hormuz could have 'catastrophic' consequences for global oil markets, remarks made after the company released its 2025 results. A sustained disruption would tighten seaborne oil supply, raise crude price risk premia and pressure energy-intensive sectors and inflation — review oil exposure, energy positions and potential hedges.