New Delhi, May 12, 2026 — Saudi Aramco CEO Amin Nasser warned that continued disruptions in the Strait of Hormuz could prevent a meaningful recovery in global oil markets until well into 2027.
Speaking after Aramco reported a 25% rise in first-quarter net profit, Nasser described the current supply shock as among the largest in energy history. He said roughly one billion barrels of oil have been lost over the past two months and that—even if shipping lanes reopened immediately—the market would need months to rebalance because of the scale of the shortfall.
“Our objective is simple: keep energy flowing, even when the system is under strain,” Nasser said, stressing that restoring transit is not the same as restoring market balance. He pointed to already low global inventories and years of underinvestment in capacity as factors that compound the recovery challenge.
The disruptions stem from Iran’s blockade of the Strait of Hormuz amid wider geopolitical tensions connected to the US–Israel conflict, which has restricted ship movements and pushed prices higher. To reduce pressure on global supplies, Aramco has been rerouting crude via its East–West Pipeline to the Red Sea, a measure Nasser called a “critical lifeline.”
Nasser also reiterated that Asia remains a strategic priority for Aramco and continues to underpin much of global oil demand, even as company logistics adapt to altered shipping patterns.
Separately, some commentary has linked recent appeals by India’s prime minister for reduced fuel use and increased work-from-home measures to the broader market situation; however, there is no official confirmation connecting those appeals to potential US sanctions or Russian oil import issues. Observers have also suggested the United States might press trade or sanctions topics during current discussions with India. An American delegation is expected to visit India this week for trade talks, adding to speculation about how diplomatic and trade negotiations could influence energy flows.
In sum, Aramco’s message is that the immediate logistical fixes do not erase the depletion of supplies, and that a full market normalisation could take many months — possibly extending into 2027 — if disruptions around the Strait of Hormuz persist.
