Saudi Aramco Brushes off War Damage

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Major oil companies are posting runaway profits on the back of a geopolitical risk premium that pushed the price of oil well above $100 per barrel. Saudi Aramco is no different, saying the war didn't take much of a toll.

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Far More than Just Surviving the War

Saudi Aramco downplayed the impact of the war in the Middle East just as reports suggest the U.S. military is running low on missiles amid a pause in fighting.

"Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by capitalizing on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West Pipeline, storage capacity, and export terminals," said Amin Nasser, the president and chief executive officer at Saudi Aramco.

Industrial Info Resources data show the East-West pipeline, which can avoid the Strait of Hormuz, is running at its full rate of around 7 million barrels per day (bpd).

Meanwhile, the United Arab Emirates is pressing for a new crude oil pipeline, dubbed West-East. The emirates can already ship about 1.5 million bpd through the Habshan - Fujairah Crude Oil Pipeline (ADCOP), though Abu Dhabi Crown Prince Khaled bin Mohamed bin Zayed al-Nahyan said he wanted the Abu Dhabi National Oil Company (ADNOC) to accelerate development of the new project. Readers can learn more from a pipeline profile.

Nasser's comments followed July attacks on key Saudi infrastructure. Saudi Aramco was forced to shut down its Jazan refinery last month, after running it at reduced rates following a missile attack on July 25. Attacks also occurred at Saudi Arabia's Yanbu and Abqaiq industrial complexes.

"Certain facilities of the company were targeted and the impact was not material operationally or financially," the chief executive officer said in a conference called transcribed by the Bloomberg news agency. "The same thing applies for July. No material impact on our capabilities, even with the July attacks."

Riding on higher crude oil prices, Aramco posted net income for the six-month period ending June 30 of $67.1 billion, compared to $52 billion during the same period last year. It realized a crude oil price of $90.1 per barrel during the period, compared to $71.50 per barrel on average during the first half of 2025.

On Tuesday, the price for West Texas Intermediate, the U.S. benchmark for the price of oil, was down sharply before the open on Wall Street to trade near $78 per barrel. It averaged $102 per barrel on average in May.

Others have followed similar patterns as Aramco, with Shell recently turning in its best quarterly performance in five years.

Revenue Up, but Economies Remain Under Pressure

The recent market downturn follows a report Tuesday from the Reuters news agency that U.S. military forces are running out of precision, long-range missiles. Elsewhere, information from the United Kingdom Maritime Operations Center shows four straight days of incidents in regional waters. The latest was in waters off Oman on Monday, where a cargo vessel reported being struck by an "unknown projectile."

But even with a lull in full-scale fighting and downturn in commodity prices, concerns are plenty for the economy. The Institute for Supply Management reported the U.S. manufacturing sector expanded for the seventh consecutive month, but survey respondents were otherwise downbeat.

One respondent said the increased cost of shipping through the Middle East was taking a toll, while another said ongoing tariffs were somewhat troubling.

"Geopolitical risk, especially in the Middle East, pertaining to commodity and energy markets remains a concern," another added.

By the Numbers

• $90 realized oil price for Saudi Aramco
• 7 million barrels per day from Saudi pipeline that can avoid the Strait of Hormuz

Key Takeaways

• Energy risks remain even amid a pause in fighting
• Attacks continue in Middle East waters

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