A prolonged closure of the Strait has become a distinct risk over the past few days, raising questions as to how global energy markets and economies would cope.
Another reversal in the narrative around the conflict’s duration could also prove costly. Nasser noted that global oil inventories are already at their lowest level in five years, meaning prolonged production interruptions would accelerate stock drawdowns and leave consuming nations with less buffer against further shocks.
Should the conflict indeed pause and the Strait of Hormuz reopen, Aramco could be able to resume its global shipments “in a matter of days,” Nasser said. But that is only true as long as the company’s stores remain well-stocked, which won’t be the case if Trump’s prediction of a swift end to hostilities doesn’t come to pass.
“While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced,” Nasser said.
