DHAHRAN, Saudi Arabia — The Saudi Arabian Oil Company, known as Aramco, said Sunday its first-quarter net income surged 25% to $32.5 billion, lifted by oil prices that remain elevated because of the Iran war. The company, the world’s largest oil producer by both reserves and production volume, credited a decision last quarter to re-route exports from the contested Strait of Hormuz to a Red Sea pipeline that now runs at full throttle.
The Dhahran-based company was helped by a Brent crude price that climbed 2.58% Sunday to $103.91 a barrel — well above its pre-war range of about $70 in late February, before the United States and Israel launched a military strike on Iran on Feb. 28. The broader conflict has choked shipments through the Strait of Hormuz, through which roughly one-fifth of the world’s traded oil flowed daily before the war hit, and which Iran effectively controls now.
Aramco President and CEO Amin Nasser said the enterprise’s East-West Pipeline — a major domestic artery connecting the company’s eastern oil fields with export terminals on the Red Sea — is now operating at its 7-million-barrel-per-day capacity. “The pipeline is helping to mitigate the impact of a global energy shock and providing relief to customers,” Nasser said.
Even so, Aramco’s total output is nearly twice that volume — 11.1 million barrels per day in the fourth quarter of 2025 — meaning the pipeline alone cannot replace all of the exports stranded in the strait. The company did not disclose how many barrels are still being shipped via the Hormuz route.
Before the war the company was coming off a down year: Aramco reported a 12% decline in annual profits in 2025. Its Q1 rebound came as it also benefited from insurance-flagged tankers and other costly work‑arounds, as insurers are reluctant to cover vessels transiting the conflict zone.
“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 said in a statement accompanied by the quarterly numbers. “Despite these headwinds, Aramco remains focused on its strategic priorities and is leveraging both its domestic infrastructure and its global network to navigate disruption.”
The company said the Red Sea pipeline, as well as other adaptations, have allowed it to manage the crisis, but industry trackers have warned that continued war could keep oil prices elevated. Global standard Brent last peaked above $119 a barrel, and some analysts suggest the market is still not pricing in a prolonged stoppage at the Strait of Hormuz.