Saudi Aramco, the world's largest oil exporter, posted a 25% rise in first-quarter net profit to $32.5bn (€27.6bn), beating market expectations as the Iran war disrupted global oil supplies and pushed prices higher. The state-owned giant's board approved a quarterly dividend of $21.9bn (€18.6bn), underscoring its financial strength despite the geopolitical turmoil.
The profit surge was driven by higher crude oil and fuel prices, though partially offset by lower sales volumes of crude, refined products, and chemicals. Brent crude traded above $103 a barrel on Monday, well above the roughly $70 level seen in late February before the conflict erupted, though below the peak of $126 reached during the early stages of the war.
Hormuz Disruption and Pipeline Response
The Iran war has severely disrupted shipping through the Strait of Hormuz, a narrow waterway that before the conflict carried about 20% of globally traded oil daily, along with large volumes of natural gas, fertiliser, and other petroleum products. Iran effectively took control of the strait after US and Israeli attacks on 28 February, and a subsequent US naval blockade further complicated passage.
In response, Aramco redirected some exports through its East-West Pipeline, which runs across Saudi Arabia to the Red Sea coast. The pipeline is now operating at its maximum capacity of 7 million barrels per day, compared with Aramco's total production of 11.1 million barrels per day in the fourth quarter of 2025. The company also relied on its domestic and international storage network to maintain supplies.
Aramco President and CEO Amin Nasser said the pipeline was "helping to mitigate the impact of a global energy shock and providing relief to customers." He added that "recent events have clearly demonstrated the vital contribution of oil and gas to energy security and the global economy, and are a stark reminder that reliable energy supply is critical."
The company stated that the disruption from the Iran war did not significantly affect its finances or operations. Nasser emphasised that Aramco remains focused on its strategic priorities, leveraging both domestic infrastructure and its global network to navigate the headwinds.
The conflict's impact on energy markets has been felt across Europe, where oil prices above $100 are feeding into higher fuel costs and inflationary pressures. European airlines, including Lufthansa, have warned that rising fuel costs will hit annual profits, while Shell and other major oil companies have also reported sharply higher earnings. The disruption at Hormuz has also raised concerns for global shipping, with Maersk reporting a 99% plunge in first-quarter profit as freight rates weigh and the strait's instability looms.
European policymakers are closely watching the situation, as the bloc seeks to diversify energy sources and reduce dependence on volatile regions. The crisis has also spurred new exploration, with Iraq discovering an 8.8 billion barrel oil field near the Saudi border, a development that could reshape regional supply dynamics.
Aramco's strong results come as the company continues to invest in both upstream and downstream capacity, aiming to maintain its position as a reliable supplier in an increasingly uncertain global energy landscape.
