RIYADH: Saudi Arabia’s leading petroleum company has warned that prolonged disruption in the Strait of Hormuz could severely affect global energy markets and delay recovery efforts until 2027.
The ongoing instability in the strategically important waterway has created an unprecedented shock to global energy supplies. He stated that if disruptions in the Strait of Hormuz continue for several more weeks, international oil markets may not return to normal conditions before 2027.
The Aramco CEO said that even if the Strait of Hormuz were reopened immediately, it would still take months for the global market to regain balance. He noted that the supply chain disruptions and uncertainty surrounding oil transportation have already caused significant pressure on energy-importing countries and global industries.
The Strait of Hormuz is considered one of the world’s most important oil transit routes, through which a major portion of global crude oil supplies passes daily.
Meanwhile, Iraq has announced extraordinary discounts on crude oil for buyers transporting shipments through the Strait of Hormuz. The move is being viewed as an effort to maintain oil exports and reassure international customers amid growing concerns over regional instability.
The Aramco chief further focused on the need for international cooperation to ensure stability in global energy routes and protect supply chains from further disruption. He stressed that maintaining uninterrupted energy flows remains essential for the stability of the world economy.
The latest developments have raised concerns among governments, investors, and energy companies worldwide, as fears continue to grow over the long-term impact of instability in the Gulf region on international oil markets and economic recovery efforts.
