Saudi Arabia’s state oil company has warned of ‘catastrophic consequences’ for the world’s oil markets if the Middle East war continues to choke exports, as three commercial ships were attacked in the Strait of Hormuz. The waterway is a chokepoint in the global oil trade, where roughly 20 per cent of the world’s oil would ordinarily pass through daily. But as a result of the roiling war, oil shipments have been largely blocked from using the shipping artery. And Iran said on Tuesday it would not allow ‘one litre of oil’ to be shipped from the Middle East if US and Israeli attacks continue.
Amin Nasser, the CEO of Aramco, said: ‘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.’ He admitted that while his firm, the world’s single biggest exporter of oil, was meeting most of its customers’ needs for now, this was only possible by tapping into storage facilities outside the Gulf. Nasser said that these stores cannot be used for ‘an extended period of time, but for the time being, we are capitalising on it.’ The CEO said: ‘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.’
