Business
Saudi Aramco Warns Iran Conflict Threatens Global Oil
Saudi Aramco warns the Iran conflict could disrupt global oil supply, pushing prices higher and impacting shipping, aviation, and global trade
11 March 2026: Saudi Aramco has issued a stark warning that the ongoing Iran conflict could trigger far-reaching disruptions in global oil markets and ripple through the world economy if tanker traffic through the Strait of Hormuz remains blocked.
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Aramco Chief Executive Officer Amin Nasser described the situation as unprecedented for the region’s energy sector during an earnings call on Tuesday, noting that the narrow shipping corridor normally transports roughly 20% of global daily oil supplies.
“There would be catastrophic consequences for the world’s oil markets, and the longer the disruption goes on, the more drastic the consequences for the global economy,” Nasser said.
The crisis is already affecting sectors beyond energy, including shipping, aviation, agriculture, and automotive manufacturing, as higher fuel costs and supply chain interruptions ripple worldwide.
Oil prices surged sharply at the start of the week, with Brent Crude nearing $120 per barrel, before easing to around $92 after former U.S. President Donald Trump suggested a resolution could be possible.
Trump added that the United States would respond decisively if Iran halts oil exports and indicated that the U.S. Navy might escort commercial vessels through the Gulf.
Aramco confirmed that exports from Gulf terminals are currently constrained, forcing the company to rely on stored oil and alternative routes, including the East-West pipeline to the Red Sea port of Yanbu, which can transport up to seven million barrels per day.
Despite these measures, Nasser warned that disruptions could still remove approximately 350 million barrels from global markets, a particularly acute concern given five-year-low global oil inventories.
The company also reported a small fire at its Ras Tanura refinery, Saudi Arabia’s largest, caused by an attack last week. The blaze was quickly contained, and the facility is in the process of restarting operations.
Despite geopolitical pressures, Aramco released its latest financial results, showing a 12% drop in annual profit attributed largely to earlier crude price declines.
The company also announced a $3 billion share buyback, its first ever, to return value to shareholders.
Analysts warn that the Iran conflict underscores the world’s reliance on Middle Eastern oil flows and the strategic vulnerability of the Strait of Hormuz.
Also read: Saudi Arabia Condemns UAE-Backed Advance in Yemen
Industry leaders stress that diplomatic solutions remain the most effective way to restore stability and safeguard global energy supply.
TotalEnergies and Nigerian independent energy company AMNI International have taken the Final Investment Decision on the $800 million Ima Gas Project, more than five decades after the gas field was discovered.
The Ima Gas Project, located in shallow waters across Oil Mining Leases 112 and 117 near Bonny Island, Rivers State, is expected to begin production in 2028 and reach a plateau of 350 million cubic feet of gas per day.
The development is expected to play a major role in supplying feed gas to Nigeria LNG, with the Ima field projected to provide about one-third of the additional gas required for the ongoing Train 7 expansion.
Train 7 is expected to increase Nigeria LNG’s liquefaction capacity from 22 million tonnes per annum to 30 million tonnes per annum, strengthening Nigeria’s capacity to process and export liquefied natural gas.
The Ima field was discovered in 1973 but remained undeveloped for more than 50 years. The Final Investment Decision provides the commercial and financial basis for finally developing the long-dormant resource.
Under the development plan, TotalEnergies will operate the project with a 40 per cent interest, while AMNI will hold the remaining 60 per cent.
The field will be developed using a single offshore platform connected to Nigeria LNG’s facility on Bonny Island through a 22-kilometre pipeline.
TotalEnergies said its investment in the project is more than $600 million, while the Federal Government described the overall Final Investment Decision as an $800 million investment.
At the FID signing ceremony in Abuja, TotalEnergies Exploration and Production Nigeria Managing Director, Mathieu Bouyer, described the decision as the culmination of a development process that had stretched across several decades.
He said the project reflected increased confidence in Nigeria’s investment environment and highlighted reforms targeting the non-associated gas sector as part of the factors that helped make the development commercially viable.
President Bola Tinubu welcomed the investment, saying the project demonstrated the potential of reforms introduced to reduce the cost and time required to develop oil and gas projects.
The President said the government had introduced incentives aimed specifically at unlocking onshore and shallow-water gas projects that had remained undeveloped for years.
He said the Ima development would create opportunities for Nigerian businesses, engineers, technicians and contractors, while generating jobs, economic activity in host communities and additional export earnings.
The project is also expected to have a strong Nigerian content component. TotalEnergies said all key contractors for the development would be Nigerian companies, while about 60 per cent of the workforce during the development phase is expected to come from host communities.
The development will incorporate measures aimed at reducing emissions. TotalEnergies said the platform would receive electricity from shore, operate without routine flaring and use permanent methane detection and monitoring systems.
The Federal Government said the project is part of efforts to turn Nigeria’s large natural gas reserves into productive assets capable of supporting industrialisation, energy supply, jobs and export earnings.
Special Adviser to the President on Energy, Olu Verheijen, said the Ima development illustrated the importance of creating commercial and investment conditions that allow previously stranded resources to be developed.
The government also noted that Nigerian financial institutions arranged 77 per cent of the project’s financing, further highlighting the participation of domestic financial institutions in the development.
For Nigeria LNG, the project comes as the company continues work on the Train 7 expansion, which is designed to increase the Bonny Island plant’s liquefaction capacity and strengthen the country’s position in the global LNG market.
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