economy
March 10, 2026
Aramco warns of oil market ‘catastrophe’ unless strait of Hormuz reopens soon
Saudi Arabian state oil firm calls crisis by far the biggest the region has seen but firm can reroute 70% of exports and tap crude held in storage
TL;DR
- Aramco warns of catastrophic consequences for oil markets if shipping in the Strait of Hormuz is blocked.
- The company expects to supply approximately 70% of its usual crude output by rerouting oil via an east-west pipeline to the Red Sea.
- Aramco is also tapping into crude held in storage outside the Gulf region to meet customer demands.
- Oil shipments have been blocked since US strikes on Iran, removing about 20 million barrels daily from the market.
- Oil prices fell on Tuesday following suggestions the war could end soon, but remain higher than before the conflict.
- G7 leaders have asked the energy watchdog to prepare scenarios for releasing emergency oil stockpiles.
- IEA member countries are required to hold at least 90 days of emergency crude supplies.
- Global oil reserves held by IEA members and China are substantial.
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