Aramco Reports 25% Profit Increase Amid Geopolitical Tensions Affecting Oil Supply
Saudi Arabia's Aramco, the world's largest oil company, announced a 25% increase in its first-quarter profits, attributed to the strategic shift of oil exports to its East-West Pipeline. This move was necessitated by disruptions in the Strait of Hormuz due to ongoing geopolitical tensions, particularly the Iran war. The East-West Pipeline, which runs from Saudi Arabia's Eastern oil fields to the Red Sea, is now operating at full capacity, handling 7 million barrels of oil per day. Despite this, the pipeline's capacity is only a fraction of Aramco's typical production, which was 11.1 million barrels per day in the last quarter of 2025. The disruption in the Strait of Hormuz, a critical waterway through which 20% of the world's traded oil flows, has significantly impacted global oil supply and prices. 
