Aramco's East-West Pipeline Hits Full Capacity Amid Strait of Hormuz Crisis
Aramco's East-West Pipeline Hits Full Capacity Amid Strait of Hormuz Crisis
Aramco's East-West Pipeline Hits Full Capacity Amid Strait of Hormuz Crisis
Aramco has boosted its oil exports by maximising the use of its East-West Pipeline. The move comes as tensions in the Strait of Hormuz disrupt global supply routes. Despite a drop in annual profits, the company’s first-quarter earnings have surged by 25%.
Before the recent conflict in Iran, around 20% of the world’s traded oil passed through the Strait of Hormuz each day. Now, Iran’s control over the waterway—following U.S. and Israeli strikes and a naval blockade—has forced major changes in oil transport.
To counter the disruption, Aramco has ramped up operations on its East-West Pipeline. The pipeline is now running at full capacity, moving 7 million barrels of oil daily. This increase has helped stabilise supply for customers facing global energy shocks. Financially, the company saw a 12% decline in annual profits for 2025. However, its first-quarter results showed a sharp turnaround, with earnings climbing to $32.5 billion—a 25% rise compared to the same period last year. CEO Amin H. Nasser highlighted the pipeline’s role in easing pressure on markets during the crisis.
The East-West Pipeline is now a critical tool for Aramco as it navigates supply chain challenges. With the Strait of Hormuz under Iranian control, the company’s ability to maintain high export levels helps offset wider market instability. The latest financial figures reflect both the strain of geopolitical tensions and the impact of strategic adjustments.
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