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Saudi Aramco posted a sharp rise in first-quarter profit Sunday, beating market expectations as the Saudi oil giant relied heavily on its East-West pipeline to keep crude flowing during the escalating conflict involving Iran and the Strait of Hormuz.
The company reported adjusted net income of $33.6 billion for the first three months of 2026, up 26% from the same period a year earlier. Earnings also climbed 34% from the previous quarter, driven by surging oil prices and supply disruptions across the Gulf.
Analysts had forecast quarterly profit of roughly $31.2 billion.
Aramco said its East-West pipeline reached full operating capacity of seven million barrels per day during the quarter, allowing the company to bypass the Strait of Hormuz, where shipping traffic has been severely disrupted since Iran's blockade intensified earlier this year.
"Our East-West Pipeline has proven itself to be a critical supply artery during this global energy shock," Chief Executive Amin Nasser said in a statement.
The conflict has rattled energy markets and raised concerns over long-term supply shortages. Nearly a billion barrels of oil supply have been affected by the closure of the strategic waterway, according to industry estimates.
Brent crude settled above $101 a barrel Friday after renewed missile strikes between Iran and the United Arab Emirates, alongside U.S. military action targeting Iranian tankers accused of breaching naval restrictions.
Aramco's quarterly revenue rose nearly 7% year-on-year to $115.5 billion. The company also approved a base dividend of $21.9 billion, marking a 3.5% increase from last year.
Saudi Arabia continues to rely heavily on Aramco's payouts to support domestic spending plans and major state-backed investment projects.
Nasser warned that even if shipping routes through the strait reopened immediately, global oil markets would take months to stabilize.
