Aramco's East-West Pipeline hits 7 mn barrels/day as Hormuz stays shut
Synopsis
Saudi Aramco's East-West Pipeline is now running at full capacity of 7 million barrels per day — a direct response to the Hormuz closure triggered by the Iran war. With profits up 25%, oil above $100 a barrel, and CEO Amin Nasser warning of market disruption until 2027, the global energy order is being redrawn in real time.
Key Takeaways
Aramco's East-West Pipeline has hit maximum capacity of 7.0 million barrels per day to bypass the closed Strait of Hormuz .
The company reported a net profit of $32.5 billion for Q1, up 25% from $26 billion a year earlier.
Global oil prices have surpassed $100 per barrel , boosting Aramco's earnings.
Nasser warned that about 1 billion barrels of oil have been lost from the market.
Nasser cautioned that trade disruption could persist until 2027 if the Strait of Hormuz remains closed.
The Samref refinery in Yanbu suffered an aerial strike, underscoring risks to alternative export routes.
Saudi Aramco's East-West Pipeline has reached its maximum capacity of 7.0 million barrels of oil per day, emerging as a critical alternative to the Strait of Hormuz after the Iran war disrupted normal ship movement through the vital waterway. Aramco president and CEO Amin H. Nasser disclosed the development on Sunday, as the company simultaneously reported a sharp jump in quarterly earnings.
Record Pipeline Capacity and Profit Surge
The world's top oil exporter posted a net profit of $32.5 billion for the three months ending 31 March, up from $26 billion in the same period last year — a 25% increase. The earnings jump was driven by a combination of higher export volumes through the pipeline and a surge in global oil prices, which have crossed the $100 per barrel mark.
Point of View
But it also exposes the fragility of the global energy architecture. A single geopolitical flashpoint — the Hormuz closure — has forced the world's largest oil exporter to run a decades-old pipeline at absolute maximum, while one of its refineries takes aerial fire. The $100-plus oil price and a 25% profit jump may look like a windfall, but the loss of 1 billion barrels from global markets is a supply shock with cascading consequences for import-dependent economies, including India. Nasser's 2027 warning is not a negotiating posture — it is a structural forecast that energy planners in New Delhi and elsewhere should be treating as a base case.
NationPress
12 May 2026
Frequently Asked Questions
Why is Aramco using its East-West Pipeline instead of the Strait of Hormuz?
The Strait of Hormuz has been closed to normal ship movement following the Iran war, forcing Aramco to reroute crude exports through its East-West Pipeline to the Red Sea. The pipeline has now reached its maximum capacity of 7.0 million barrels per day.
What were Aramco's profits in Q1 2025?
Aramco posted a net profit of $32.5 billion for the first quarter ending 31 March, up 25% from $26 billion in the same period the previous year. The increase was driven by higher export volumes and oil prices crossing $100 per barrel.
How long could the oil market disruption last?
CEO Amin H. Nasser warned that if trade through the Strait of Hormuz remains curtailed, the market may not normalise until 2027. He also noted that approximately 1 billion barrels of oil have already been lost from global markets.
What is the Samref refinery incident?
The Samref refinery in Yanbu, which lies along Aramco's alternative Red Sea export route, was struck in an aerial attack. The incident highlights the security risks facing Aramco's rerouted export infrastructure.
How does the Hormuz closure affect India?
India, as a major oil importer heavily reliant on Gulf crude, is directly exposed to supply constraints and elevated prices caused by the Hormuz closure. Oil prices above $100 per barrel raise India's import bill significantly and could widen the current account deficit.
