Saudi Aramco’s Second-Quarter Profit Jumps 33% as Iran Conflict Squeezes Oil Supply
Saudi Aramco said Tuesday that its second-quarter profit surged, beating market expectations, as the Iran conflict pushed up oil and gas prices. The world’s largest oil company reported adjusted net income of 125.2 billion Saudi riyals ($33.4 billion) for the April-to-June period, up 33% from a year earlier and above analysts’ expectation of $31.59 billion. Revenue rose sharply, driven mainly by higher prices for crude oil, refined products and petrochemicals. Lower sales volumes of crude, refined products and chemicals partly offset the price-related increase. The conflict has severely disrupted shipping through the Strait of Hormuz. To mitigate the wartime risk, Saudi Aramco has continued using its 1,200-kilometer (746-mile) East-West pipeline across the Arabian Peninsula to the Red Sea, allowing shipments to bypass the strait. The company has maintained peak crude exports of 7 million barrels per day. Saudi Aramco’s second-quarter operating highlights included $25.4 billion in cash flow from operating activities. Its leverage ratio was 6.2% at the end of June, compared with 4.8% at the end of the first quarter. The company said it has continued to use the East-West pipeline to improve the flexibility of its crude-supply allocation. A photo caption identified Saudi Aramco’s Ras Tanura refinery and crude terminal. Amin H. Nasser, Saudi Aramco’s president and chief executive, said in a statement: “Despite an unprecedented disruption to supplies through the Strait of Hormuz, we have continued to keep our business operating reliably, supported by a diversified asset base and decades of long-term planning, including strategic infrastructure such as the East-West pipeline, storage facilities and export terminals. With these assets, we have stabilized production and exports amid severe regional conditions while continuing to advance key projects.” Saudi Aramco’s board declared a base dividend of $21.9 billion for the second quarter, to be paid over the next three months. Nasser said the continuing geopolitical crisis was “further intensifying the largest crude-supply shock in history.” He said disruptions to crude transportation had created a global supply shortfall of more than 2.6 billion barrels for agriculture, semiconductors, autos, chemicals and manufacturing. On the earnings call, Nasser said the East-West pipeline and crude inventories around the world had helped ease the supply shock, narrowing the actual net supply shortfall to about 1.8 billion barrels. He warned that even if the Strait of Hormuz reopened immediately, it would take as long as 18 months to replenish depleted inventories at an average restocking pace of 2.1 million barrels per day. The conflict, which has lasted more than five months, has continued to spread, with more Middle Eastern countries, including Iraq and Egypt, recently becoming involved. The disruption comes amid an ongoing standoff between the United States and Iran and rising fossil-fuel prices, conditions that have also supported strong quarterly earnings reports from international oil majors. In the United States, President Donald Trump publicly criticized two major oil companies on Monday, accusing them of profiting excessively from the Iran conflict and higher fuel prices and again calling for lower domestic retail fuel prices. Trump told reporters at the White House: “They are making a fortune off the supply shortage, and I can’t accept it.” Exxon Mobil’s second-quarter profit doubled from a year earlier to $14.5 billion, while Chevron’s profit jumped nearly 400% to $12 billion, compared with $2.5 billion in the same period last year. A separate photo caption showed Nasser attending the World Economic Forum in Davos on Jan. 20, 2026.
The world’s largest oil company reported adjusted net income of 125.2 billion Saudi riyals ($33.4 billion) for the April-to-June period, up 33% from a year earlier and above analysts’ expectation of $31.59 billion. Revenue rose sharply, driven mainly by higher prices for crude oil, refined products and petrochemicals. Lower sales volumes of crude, refined products and chemicals partly offset the price-related increase.
The conflict has severely disrupted shipping through the Strait of Hormuz. To mitigate the wartime risk, Saudi Aramco has continued using its 1,200-kilometer (746-mile) East-West pipeline across the Arabian Peninsula to the Red Sea, allowing shipments to bypass the strait. The company has maintained peak crude exports of 7 million barrels per day.
Saudi Aramco’s second-quarter operating highlights included $25.4 billion in cash flow from operating activities. Its leverage ratio was 6.2% at the end of June, compared with 4.8% at the end of the first quarter. The company said it has continued to use the East-West pipeline to improve the flexibility of its crude-supply allocation.
A photo caption identified Saudi Aramco’s Ras Tanura refinery and crude terminal.
Amin H. Nasser, Saudi Aramco’s president and chief executive, said in a statement: “Despite an unprecedented disruption to supplies through the Strait of Hormuz, we have continued to keep our business operating reliably, supported by a diversified asset base and decades of long-term planning, including strategic infrastructure such as the East-West pipeline, storage facilities and export terminals. With these assets, we have stabilized production and exports amid severe regional conditions while continuing to advance key projects.”
Saudi Aramco’s board declared a base dividend of $21.9 billion for the second quarter, to be paid over the next three months.
Nasser said the continuing geopolitical crisis was “further intensifying the largest crude-supply shock in history.” He said disruptions to crude transportation had created a global supply shortfall of more than 2.6 billion barrels for agriculture, semiconductors, autos, chemicals and manufacturing.
On the earnings call, Nasser said the East-West pipeline and crude inventories around the world had helped ease the supply shock, narrowing the actual net supply shortfall to about 1.8 billion barrels. He warned that even if the Strait of Hormuz reopened immediately, it would take as long as 18 months to replenish depleted inventories at an average restocking pace of 2.1 million barrels per day.
The conflict, which has lasted more than five months, has continued to spread, with more Middle Eastern countries, including Iraq and Egypt, recently becoming involved. The disruption comes amid an ongoing standoff between the United States and Iran and rising fossil-fuel prices, conditions that have also supported strong quarterly earnings reports from international oil majors.
In the United States, President Donald Trump publicly criticized two major oil companies on Monday, accusing them of profiting excessively from the Iran conflict and higher fuel prices and again calling for lower domestic retail fuel prices. Trump told reporters at the White House: “They are making a fortune off the supply shortage, and I can’t accept it.”
Exxon Mobil’s second-quarter profit doubled from a year earlier to $14.5 billion, while Chevron’s profit jumped nearly 400% to $12 billion, compared with $2.5 billion in the same period last year.
A separate photo caption showed Nasser attending the World Economic Forum in Davos on Jan. 20, 2026.