In this photo illustration, the Saudi Aramco logo is displayed on a mobile phone screen. The Saudi Aramco logo is displayed in Brussels, Belgium, March 2, 2026, as prices fluctuate amid escalating conflicts involving Iran and concerns about global supply disruptions. (Photo by Jonathan Raa/NurPhoto via Getty Images)
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Saudi Aramco on Sunday reported a 26% increase in first-quarter profit from a year earlier, beating analyst expectations, as a key pipeline bypassing the blocked Strait of Hormuz reached full capacity.
The Saudi energy giant told CNBC in a statement that its adjusted net profit for the first quarter of 2026 was $33.6 billion, compared with $26.6 billion a year earlier. The first-quarter number was a 34% increase from the previous quarter’s $25.1 billion profit.
Analysts had expected first-quarter adjusted net income to be $31.2 billion, Aramco said.
“Our East-West pipeline has reached its peak production capacity of 7 million barrels of oil per day and has proven to be a critical supply artery, mitigating the impact of global energy shocks and providing relief to customers affected by shipping constraints in the Strait of Hormuz,” Aramco CEO Amin Nasser said in a statement.
Nearly a billion barrels of oil have been lost as a result of Iran’s blockade of the Strait of Hormuz, and with sea lanes remaining closed, the shortage is worsening by the day.
Oil prices rose on Friday after Iran fired another missile at the United Arab Emirates and the United States attacked two Iranian tankers as they tried to evade a naval blockade.
Brent crude oil futures, the international standard, rose about 1% to close at $101.29 per barrel. US West Texas Intermediate futures settled slightly higher at $95.42 per barrel.
Brent crude oil prices rose 95% in the first quarter and are up 67% year-to-date.
Brent crude oil, year to date
CEOs of major oil and gas companies have told investors on earnings calls over the past two weeks that the world’s energy system will be drastically changed as a result of the Iran war.
Olivier Le Pouche, CEO of oilfield services giant SLB, said the disruption showed the fragility of the global energy system.
Aramco reported a gearing ratio of 4.8% at the end of the first quarter.
Aramco said its board of directors approved a basic dividend of $21.9 billion for the first quarter, an increase of 3.5% from the same period last year.
– CNBC’s Dan Murphy and Spencer Kimball contributed to this article.
