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Aramco Net Income Rises 26% After Crude Reroute, Hormuz Threat

5/12/2026

Summary

Aramco Reroutes Crude

Saudi Aramco redirected crude to Yanbu within eight days of the war, reaching 7 million bpd.
First-quarter adjusted net income rose 26 % to 126 billion riyals ($33.6 billion).
Production fell to about 7.4 million bpd in March-April, while export volumes rose to under 4 million bpd in April via Yanbu.
Nasser warned the Hormuz shutdown cuts ~100 million barrels weekly, keeping oil above $100 a barrel and Aramco can add full 12 million-bpd capacity in under three weeks.

Summary

Nasser Warns

Nasser warned that if the Strait of Hormuz stays closed past mid-June, the oil market may not normalize until 2027.
Over 600 tankers are stranded in the Gulf, about 240 outside Hormuz.
The market loses roughly 100 million barrels weekly, a total over 1 billion, while strategic reserves are being tapped.
Aramco raised east-west pipeline throughput to 7 million barrels per day.

History

Historical Context

The 1973 oil embargo, launched by OPEC in October 1973, slashed Saudi crude output by 5 million barrels per day, triggering a global price shock. President Richard Nixon’s administration recorded a 70 % rise in U.S. gasoline prices, while the United Nations noted a $12-per-barrel average price surge. Today, Saudi Aramco’s rapid rerouting of 7 million barrels per day through Yanbu mirrors the 1973 strategy of compensating lost Hormuz shipments to sustain market stability. The precedent shows that large-scale production shifts can temporarily cushion price spikes, yet prolonged closures may force reserves depletion and delay market normalization until 2027.

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Aramco Reroutes Crude

Saudi Aramco redirected crude to Yanbu within eight days of the war, reaching 7 million bpd.
First-quarter adjusted net income rose 26 % to 126 billion riyals ($33.6 billion).
Production fell to about 7.4 million bpd in March-April, while export volumes rose to under 4 million bpd in April via Yanbu.
Nasser warned the Hormuz shutdown cuts ~100 million barrels weekly, keeping oil above $100 a barrel and Aramco can add full 12 million-bpd capacity in under three weeks.

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