Saudi Aramco reports bumper profits as it bypasses Strait of Hormuz

Saudi Aramco reports bumper profits as it bypasses Strait of Hormuz Saudi Aramco said on Tuesday its profits surged 33 percent in the second quarter of this year, as the kingdom benefited from the US-Israeli war on Iran, which drove up energy prices, while its oil pipeline allowed it to bypass the Strait of Hormuz. The state-owned Saudi Arabian oil giant’s adjusted net income rose to $33.4bn from $25.2bn a year ago. The second quarter runs from early April to the end of June. The US and Iran reached a ceasefire in April that was extended in June, but fighting has continued to rage, keeping energy prices inflated. Iran is attempting to assert its control over the Strait of Hormuz and has attacked dozens of vessels trying to transit the strait via Oman’s territorial waters. The US has bombarded Iran, and in response, Tehran has targeted Gulf states, particularly Kuwait and Bahrain. The war drove Brent, the international benchmark, up above $100 per barrel in May and then again in July. Prices for refined products, like diesel, jet fuel, and gasoline, are up substantially. Iraq, Kuwait, Bahrain, and Qatar have all had to cancel or massively curb energy shipments. Aramco chief executive Amin Nasser speaks during the annual Future Investment Initiative conference in Riyadh, Saudi Arabia, on 29 October 2024 (Fayez Nureldine/AFP)