20% of World’s Oil at Risk as Aramco Warns of Hormuz Crisis

Saudi Aramco, one of the world’s largest oil producers, has warned that global energy markets could face “catastrophic consequences” if the strategic Strait of Hormuz remains blocked amid escalating tensions in the Middle East.

The warning was issued by Aramco’s Chief Executive Officer, Amin Nasser, who said any prolonged disruption to shipments through the narrow waterway would severely affect global oil supplies and trigger significant volatility in energy markets.

The Strait of Hormuz is regarded as one of the most critical oil transit routes in the world, with about one-fifth of global oil consumption passing through the channel daily. A sustained blockade, analysts warn, could remove millions of barrels of crude from international markets, sending prices sharply higher and disrupting global trade.

The warning comes as tensions escalate between Iran and the United States following threats from Iran’s Revolutionary Guards to halt oil exports from the region if attacks by the U.S. and Israel continues.

Energy experts say such a move could trigger one of the most severe supply disruptions in decades, with ripple effects across industries including aviation, shipping, manufacturing, and agriculture.

Despite the growing uncertainty, Saudi Aramco said it is exploring alternative supply routes and using its infrastructure, including pipelines connecting the Persian Gulf to the Red Sea, to ensure the continued flow of oil to global markets.

However, market analysts caution that these alternatives may only partially offset the impact if the Strait of Hormuz remains closed for an extended period.