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Saudi Aramco reported a significant increase in its second-quarter profit on Tuesday, driven by higher oil and gas prices stemming from the conflict with Iran, with results exceeding market expectations. The oil giant stated that the revenue surge was primarily due to higher prices for crude oil, refined products, and petrochemicals. In response to the Iran conflict, Saudi Aramco activated its 1,200-kilometer (746-mile) East-West pipeline to the Red Sea, bypassing the Strait of Hormuz for transportation.
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Major disruptions to shipping through the Strait of Hormuz, caused by widespread conflict in the Middle East, prompted Saudi Aramco to announce a sharp rise in its second-quarter profit on Tuesday. The world's largest oil company posted an adjusted net profit of 125.2 billion Saudi riyals ($33.4 billion) for the April-to-June period, a 33% increase year-over-year, surpassing analyst expectations of $31.59 billion. As the ongoing standoff between the U.S. and Iran pushes fossil fuel prices higher, major international oil companies are also reporting strong quarterly earnings. The conflict, now in its fifth month, continues to expand, with more Middle Eastern nations, including Iraq and Egypt, recently drawn in. Saudi Aramco has leveraged its 1,200-kilometer East-West pipeline across the Arabian Peninsula to reach the Red Sea, bypassing the Strait of Hormuz and maintaining a peak crude oil export capacity of 7 million barrels per day to manage shipping risks associated with the Iran conflict.
Key second-quarter financial highlights
Second-quarter operating cash flow reached $25.4 billion. The company's leverage ratio was 6.2% at the end of June, up from 4.8% at the end of the first quarter. The company continues to utilize its East-West pipeline, enhancing flexibility in crude oil supply. Saudi Aramco President and CEO Amin Nasser stated in a release, "Despite unprecedented supply disruptions in the Strait of Hormuz, our diversified asset portfolio and decades of long-term planning, including strategic infrastructure like the East-West pipeline, storage facilities, and export terminals, have allowed us to maintain stable operations. Leveraging this setup, we have sustained production and exports amidst a severe regional situation while continuing to advance key projects."
Further insights
Saudi Aramco's board declared a second-quarter base dividend of $21.9 billion, to be paid over the next three months. The oil giant said its second-quarter revenue growth was primarily driven by higher prices for crude oil, refined products, and chemicals, partially offset by lower sales volumes of these products. At the World Economic Forum in Davos on January 20, 2026, Nasser noted that the ongoing geopolitical crisis is "exacerbating the largest crude oil supply shock in history." With significant volumes of oil transport blocked, the global supply gap for crude oil to agriculture, semiconductors, automotive, chemicals, and manufacturing has exceeded 2.6 billion barrels. During an earnings call, Nasser mentioned that the East-West pipeline and global crude oil inventories have effectively mitigated the supply shock, reducing the actual net supply gap to about 1.8 billion barrels. He also warned that even if the Strait of Hormuz were to resume operations immediately, it would take up to 18 months to replenish depleted inventories, based on an average restocking rate of 2.1 million barrels per day.
Trump's stance: U.S. oil giants 'earning too much'
In the United States, President Donald Trump on Monday publicly criticized major oil companies Exxon Mobil and Chevron for profiting excessively from the Iran conflict and rising fuel prices, once again calling for a reduction in domestic retail gasoline prices. Trump told reporters at the White House, "They are making a fortune from the supply shortage, and I cannot accept that." Exxon Mobil's second-quarter profit doubled year-over-year to $14.5 billion, while Chevron's profit surged nearly 400% to $12 billion, compared to just $2.5 billion in the same period last year.