Saudi Aramco reported a significant jump in second-quarter profit on Tuesday. The company's performance was boosted by the ongoing escalation of conflict across the Middle East, which severely disrupted shipping through the Strait of Hormuz.

For the period from April to June, the world's largest oil producer posted an adjusted net profit of 125.2 billion Saudi riyals ($33.4 billion), a 33% year-on-year increase, surpassing analysts' expectations of $31.59 billion. Major international oil giants have also recently reported sharply higher quarterly earnings, benefiting from the surge in fossil fuel prices driven by the US-Iran standoff.

The conflict, which has lasted for over five months, has been expanding its main battlefield. In recent days, it has drawn more Middle Eastern countries, including Iraq and Egypt, into the turmoil. To mitigate supply risks stemming from the Iran situation, Saudi Aramco utilized its 1,200-kilometer (746-mile) East-West pipeline, which bypasses the Strait of Hormuz and reaches the Red Sea, maintaining a maximum crude oil export capacity of 7 million barrels per day.

Key second-quarter operating data: Cash flow from operating activities was $25.4 billion. The gearing ratio stood at 6.2% at the end of June, compared to 4.8% at the end of the first quarter. Saudi Aramco stated it will continue to rely on the East-West pipeline to enhance supply flexibility.

In a statement, Saudi Aramco President and CEO Amin Nasser said, "Despite an unprecedented supply disruption at the Strait of Hormuz, we have continued to demonstrate our ability to maintain business continuity, leveraging our diversified asset portfolio and decades of long-term planning, including strategic infrastructure such as the East-West pipeline, storage facilities, and export terminals." He added, "While the regional environment is challenging, we have managed to stabilize production and export volumes while continuing to advance key projects."

The Saudi Aramco board declared a second-quarter base dividend of $21.9 billion, to be paid out over the next three months. The oil giant stated that the significant increase in second-quarter revenue was primarily driven by higher prices for crude oil, refined products, and chemicals, partially offset by a decline in sales volumes of crude oil, refined products, and chemicals.