Aramco warns of severe impact on oil markets if Hormuz Strait remains closed

Riyadh — Saudi Aramco has cautioned that the global oil market could face "catastrophic consequences" if the Strait of Hormuz remains blocked, following recent threats from Iran's Islamic Revolutionary Guard Corps (IRGC) amid ongoing tensions in the Middle East.

According to a statement from Aramco, the company expressed deep concern over the potential disruption to oil shipments through the strategic waterway. The Strait of Hormuz is a crucial passage for a significant portion of the world's oil supply, and any prolonged closure could have far-reaching effects on global energy markets.

The warning comes after the IRGC declared that it would not permit "one litre of oil" to be exported from the region if US-Israeli military actions continue. The IRGC's statement underscored the heightened risk of escalation in the area, which has already seen increased military activity and threats to shipping lanes.

Aramco emphasized the importance of maintaining open and secure shipping routes through the Strait of Hormuz, highlighting the potential for severe disruptions to both regional and international economies if the situation deteriorates further. The company called on all parties to exercise restraint and seek diplomatic solutions to avoid further instability.

The Strait of Hormuz, located between Oman and Iran, is one of the world's most important maritime chokepoints, with a large percentage of global oil exports passing through it daily. Recent developments have raised concerns among energy producers and consumers alike about the security of supply and the possibility of price volatility.

As tensions persist, stakeholders in the global energy sector are closely monitoring the situation, with Aramco's warning serving as a stark reminder of the potential consequences of continued conflict in the region.