The world’s largest oil exporter has warned of ‘catastrophic consequences’ for global energy markets if the Iran conflict continues to disrupt shipping through the Strait of Hormuz. Amin Nasser, CEO of Saudi Aramco, told journalists that the Middle East’s energy industry is confronting the worst crisis in its history, according to an analysis published by Sky News.
Shipping Halted, Exports Disrupted
Oil production has been disrupted, and deliveries through the narrow waterway off Iran’s southern coast have come to a standstill following Iranian attacks. The Islamic Revolutionary Guard Corps (IRGC) has declared it will not allow a single litre of oil to pass through the strait until U.S. and Israeli strikes against Iran cease.
Markets on Edge Amid Volatility
Brent crude is currently trading near $90 per barrel — a dip following statements from former U.S. President Donald Trump that raised hopes of a short-lived conflict. Yet markets remain highly volatile, with deep concerns that the Strait of Hormuz — which normally handles roughly one-fifth of the world’s oil and natural gas supplies — could remain closed for an extended period.
Unprecedented Supply Shock
Energy analysts at Wood Mackenzie warned on Tuesday (10 March 2026) that Brent crude — which briefly neared $120 per barrel on Monday — could climb even higher.
‘With 15 million barrels per day from the Gulf suddenly withdrawn from the market, global oil demand would need to fall sharply to restore balance — a process that could push prices toward $150 per barrel,’ the analysis stated. ‘The scale of this disruption is unprecedented. Gulf countries collectively produce 20 million barrels per day, and 15 million barrels per day in exports have effectively vanished from the global market. The industry has never faced a supply loss of this magnitude.’
Recovery Will Take Time
‘When the conflict ends, restarting the supply chain won’t be quick,’ added Simon Flowers, chairman of Wood Mackenzie. ‘Barrels of refined products stored at refineries or ports can be shipped relatively fast. But if production facilities remain shut for an extended period, returning output to full capacity could take weeks — or longer.’