Aramco CEO Says Strait of Hormuz Closure Has Triggered Historic Global Oil Supply Shock

Saudi oil giant Aramco’s President and CEO, Amin Nasser, says the closure of the Strait of Hormuz has caused what he described as the “largest oil supply shock in history,” with global markets losing more than 2.6 billion barrels of oil since the waterway was closed. Speaking to Saudi broadcaster Al Arabiya after the company’s quarterly earnings announcement, Nasser warned that the disruption is having far-reaching consequences beyond the energy sector.

According to Nasser, the prolonged interruption of maritime traffic through the strategic chokepoint is also threatening global food security, highlighting the wider economic impact of disrupted supply chains. The Strait of Hormuz is one of the world’s most critical shipping routes for crude oil and petroleum exports.

Iran has established a designated official maritime transit route through the Strait of Hormuz, saying the measure regulates legal shipping under a memorandum of understanding signed with the United States in June. Tehran says the agreement was intended to end tensions following the latest round of American-Israeli military actions against Iran between February 28 and April 7. Iranian authorities have accused Washington of attempting to undermine the official route by facilitating transit through what they describe as an illegal passage along the Omani coastline, while maintaining that the strait will remain closed until US interference in maritime traffic ceases.