Aramco CEO Warns Strait of Hormuz Disruption Could Delay Oil Market Recovery Until 2027
Saudi Aramco CEO Amin Nasser has issued a warning regarding the ongoing disruption in the Strait of Hormuz, stating that it could delay the normalization of the oil market until 2027. The disruption is a result of Iranian authorities blocking the waterway in response to U.S. and Israeli attacks on Iran, which began on February 28. This blockade has significantly reduced the number of vessels crossing the strait, from 70 per day to just 2 to 5, causing a loss of around 100 million barrels of oil weekly. Aramco has increased the capacity of its East-West Pipeline to 7 million barrels per day to divert oil to the Red Sea Port of Yanbu. Despite these efforts, Nasser emphasized that even if the strait were to reopen immediately, it would still take months for the market to stabilize. 
