Saudi Arabia’s Aramco warns of ‘catastrophic consequences’ if Strait of Hormuz remains blocked

Saudi Arabia’s Aramco 2222.SE, the world’s top oil exporter, said on Tuesday there would be “catastrophic consequences” for the world’s oil markets if the Iran war continues to disrupt shipping in the Strait of Hormuz.

“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 CEO Amin Nasser told reporters on an earnings call.

“While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced.”

The crisis has not only upended the shipping and insurance sectors but also promises to have drastic domino effects on aviation, agriculture, automotive and other industries, he added.

This comes as oil shipments have been largely blocked from traversing through the shipping artery, where normally roughly 20% of the world’s oil would pass through daily. Iran’s Revolutionary Guards said on Tuesday they would not allow “one litre of oil” to be shipped from the Middle East if U.S. and “Israeli” attacks continue.

Global crude benchmark Brent LCOc1, which rocketed to a more than three-year high of nearly $120 a barrel on Monday, was trading around $92 on Tuesday following comments by U.S. President Donald Trump predicting the war could end soon.