What Hormuz crisis? Saudi Aramco’s new oil route moves 7 million barrels daily – here’s how

Saudi Aramco has redirected more crude oil flows through its East-West pipeline after disruptions due to conflict between the United States and Iran and uncertainty in the Strait of Hormuz. The company is now exporting around 7 million barrels of oil per day via the Red Sea route.

New Delhi: Saudi Arabia’s state-run oil giant Aramco has adjusted its export system as tensions involving Iran and the United States continue to affect shipping routes through the Strait of Hormuz. Moving a large share of its crude toward the Red Sea instead of relying only on the narrow maritime passage, the company has increased its use of the East-West pipeline to maintain smooth oil movement.

Aramco’s President and CEO Amin H. Nasser said on May 17 that the 1,200-kilometre East-West pipeline, also known as the Petroline, is operating at full capacity. He explained that the pipeline is now handling close to 7 million barrels of crude oil every day, making it an important route in the company’s export network.

The pipeline carries crude from oil fields in eastern Saudi Arabia to terminals on the Red Sea coast. From there, tankers transport the oil to international markets, reducing dependence on Hormuz.

Pipeline becomes major route for exports

The East-West pipeline has taken on a larger role as shipping through the maritime chokepoint has become uncertain at different points. With this system, Aramco has been able to continue its export flow without major interruptions. The route has become an important backup channel in international energy movement, especially during periods of instability in the Gulf region.

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The company has also reported financial gains driven by higher oil prices in the international market. Aramco said that increased pipeline usage and stronger crude prices helped improve its quarterly performance, with profits rising by 25 percent.

Strong profit growth in recent quarter

Aramco, one of the world’s largest oil exporters, recorded a net profit of $32.5 billion for the quarter ending March 31. This is higher than $26 billion reported during the same period last year. The rise has been driven by both higher international oil prices and smoother export movement through alternative routes such as the East-West pipeline.

The company said the change in logistics helped it manage demand even as shipping risks persisted in important maritime corridors.

Warning on long-term supply risks

Despite the improved performance, Nasser has warned that continued disruption in the Strait of Hormuz could create long-term challenges for the oil market. He said that if the situation is unstable, international oil supply chains could face disruption in the coming years, especially by 2027.

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He also pointed out that nearly 1 billion barrels of oil have already been affected in terms of market flow due to disruptions and changing trade routes.

Even with these concerns, Aramco is relying on its pipeline network and Red Sea export routes to keep supply moving. The company continues to balance production and logistics as it adjusts to changing conditions in international energy markets.