The Saudi Arabian Oil Company announced Sunday that its first-quarter earnings surged 25% compared to the same period last year, reaching $32.5 billion through March 31. The state-controlled energy giant achieved this growth by maximizing use of its cross-country pipeline system to bypass troubled shipping lanes in the Strait of Hormuz amid ongoing conflict with Iran.
The company, commonly called Aramco, had previously seen its annual earnings drop 12% in 2025, making this quarterly rebound particularly significant for the world’s biggest oil producer.
“Aramco’s first-quarter performance reflects strong resilience and operational flexibility in a complex geopolitical environment,” stated company President and CEO Amin H. Nasser. He noted that their East-West Pipeline, which carries crude oil from Saudi Arabia’s eastern production areas to Red Sea ports, is now functioning at its full 7 million barrel-per-day capacity. Nasser described the pipeline as “helping to mitigate the impact of a global energy shock and providing relief to customers.”
Despite this operational success, the pipeline cannot fully compensate for the lost shipping capacity through the Strait of Hormuz. Under normal circumstances, approximately 20% of globally traded oil passes through this strategic waterway daily, along with substantial volumes of natural gas, fertilizers, and other petroleum-based products.
Iran gained effective control over this crucial shipping route following U.S. and Israeli military actions on February 28, while a subsequent U.S. naval blockade has further complicated maritime traffic in the area.
“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,” Nasser explained. “Despite these headwinds, Aramco remains focused on its strategic priorities and is leveraging both its domestic infrastructure and its global network to navigate disruption.”
