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Global energy markets are entering a critical phase as ongoing disruptions around the Strait of Hormuz continue to tighten oil supplies and increase pressure on economies worldwide.
Saudi Aramco CEO Amin Nasser warned that the global market is effectively losing nearly 100 million barrels of oil supply every week while shipping activity through the Strait of Hormuz remains disrupted. He described the current situation as one of the largest energy supply shocks the world has ever experienced.
Speaking during an earnings call, Nasser said the market is currently surviving through “demand rationing,” where countries and industries are being forced to reduce energy consumption due to limited available supply and rising costs.
According to him, the imbalance between oil futures markets and physical oil prices is becoming increasingly visible. While Brent crude futures are trading around $105 per barrel, the actual price paid by buyers in some regions is reportedly much higher due to supply shortages and logistical pressure.
Energy analysts noted that several Asian economies, which rely heavily on Gulf oil exports, are already experiencing tighter access to supplies and elevated import costs. Meanwhile, Western economies, particularly the United States, have so far avoided direct fuel rationing despite higher energy prices.
Nasser also warned that global oil inventories stored on land and at sea are being rapidly depleted. These reserves have acted as the market’s primary safety buffer since the beginning of the crisis, but available stockpiles are now falling to increasingly sensitive levels.
Earlier in the conflict, the International Energy Agency coordinated the release of approximately 400 million barrels from emergency reserves to stabilize markets. China also reportedly reduced oil imports significantly to manage domestic demand and conserve supply.
Despite those measures, industry experts believe the market could approach a major tipping point if normal shipping operations through the Strait of Hormuz are not restored within the coming months.
JP Morgan analysts recently warned that prolonged disruption could push global oil inventories toward operational minimum levels, potentially triggering stronger demand destruction, higher inflationary pressure, and increased economic instability across multiple regions.
Saudi Arabia has managed to maintain part of its export capacity by using its East-West pipeline network connected to the Red Sea port of Yanbu. Amin Nasser described the pipeline as a critical energy lifeline, currently operating near its five-million-barrel-per-day capacity.
The kingdom is also continuing exports of refined petroleum products through Red Sea routes, helping offset some of the pressure caused by instability around Hormuz.
The Strait of Hormuz remains one of the world’s most strategically important energy corridors, carrying a major share of global oil and LNG shipments. Any prolonged disruption in the region is expected to have direct consequences for oil prices, inflation, supply chains, financial markets, and global economic growth.
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The profits of the top 100 listed companies in the Middle East, according to Forbes, saw a slight decline last year, with total net profit decreasing by 1.2 percent to reach $237.4 billion, and the market value of the companies on the list fell by 3.6 percent to $3.5 trillion starting from April 2025.