Global Oil Market Loses Over 2.6 Billion Barrels Amid U.S.-Iran Conflict

The global oil market has lost more than 2.6 billion barrels of oil since the U.S.-Iran conflict began in February, according to Aramco CEO Amin Nasser. This is equivalent to nearly a month's worth of normal global crude production, highlighting the scale of disruption caused by the closure of the major oil chokepoint, the Strait of Hormuz.

Nasser warned that global inventories are running low despite emergency measures to cushion the blow. He noted that it would take up to 18 months at an average rate of 2.1 million barrels a day to replenish depleted inventories if the Strait were to open today.

Aramco, the world's top oil exporter, reported a 44% increase in net profit to $32.69 billion for the three months ending June 30, as it benefited from higher prices for crude oil and refined products, while rerouting shipments away from Hormuz.

The supply disruption could widen after Iran-aligned Houthi forces announced a blockade of Saudi Arabia's oil industry last month, adding pressure to Red Sea shipping. Nasser said recent attacks on facilities had caused some production interruptions but that Aramco could restore operations quickly.