Saudi Arabia’s oil company Saudi Aramco, the world’s largest oil exporter, warned on Tuesday that the ongoing Iran war could have “catastrophic consequences” for global oil markets if shipping disruptions in the Strait of Hormuz continued.“There would be catastrophic consequences for the world’s oil markets and the longer the disruption goes on, the more drastic the consequences for the global economy,” Aramco chief executive Amin Nasser said, as quoted by Reuters.
He said the disruption had already affected shipping and insurance sectors and could also impact industries such as aviation, agriculture and automobiles.Nasser said global oil inventories were already at a five-year low and warned that the crisis could lead to faster drawdowns if shipments through the strait did not resume.The comments came after Aramco reported a 12 per cent fall in its annual profit, mainly due to lower crude prices. The company also said it planned to repurchase up to $3 billion worth of shares in its first share buyback.Earlier, an Iranian drone attack targeted the Ras Tanura refinery in Saudi Arabia, one of the world’s largest oil export facilities owned by Aramco. Videos shared online showed thick black smoke rising from the site. The company said the refinery was temporarily shut down after the strike.Nasser also confirmed that a small fire broke out last week at Aramco’s Ras Tanura Refinery, the company’s largest refinery in the country, following an attack. He said the fire was quickly brought under control and the refinery was now in the process of restarting.Earlier on Tuesday, Iran’s paramilitary Islamic Revolutionary Guard Corps said it would not allow “one litre of oil” to be shipped from the Middle East if attacks by the United States and Israel continued.Responding to the threat, US President Donald Trump warned that the United States would strike Iran much harder if it blocked oil exports from the region.
