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Saudi Aramco on Tuesday reported a 12.1 percent decline in net income in 2025 as higher supply, U.S. tariffs, and other economic headwinds weighed on revenues.

The Middle East war could be disastrous for oil markets, and it is vital to reopen the Strait of Hormuz shipping route, Saudi Aramco's CEO and president Amin H. Nasser said on Tuesday.

"There would be catastrophic consequences for the world's oil markets the longer the disruption goes on, and the more drastic the consequences for the global economy," he told a media call.

"It's absolutely critical that shipping resumes in the Strait of Hormuz," Nasser added.

The world's biggest oil exporter said in a statement that net income in 2025 reached $93.38 billion, compared to $106.24 billion in 2024.

Stripping out exceptional items, adjusted net income was $104.65 billion in 2025 compared to $110.29 billion in 2024, a slide of 5.1 percent.

However, Nasser said in a statement, "Following another year of record oil demand in 2025, we believe ongoing investments in our operations position us well for the future."

Throughout 2025, the oil alliance OPEC+, of which Saudi Arabia is a key member, oversaw an increase in production, eroding prices.

The Aramco report was released as the 11-day-old Middle East war destabilizes energy supplies, triggering wild swings in crude prices.

Iran has fired at energy installations across the Gulf, including Aramco's sprawling Ras Tanura facility, which halted some operations after being targeted by drones.

The massive complex on the Gulf Coast is home to one of the Middle East's largest refineries and is a cornerstone of the Saudi energy sector. Saudi oil fields have also been targeted in Iran's reprisal attacks.

Elsewhere, Bahrain's Al Ma'ameer oil facility was also hit on Monday, causing a fire and damage, with the country's state-owned energy firm, Bapco, declaring force majeure.

Energy producers in Qatar and Kuwait earlier made similar declarations, which are a warning that events beyond their control may lead them to miss export targets.

The fighting has also largely halted maritime traffic in the strategic Strait of Hormuz, where roughly 20 percent of global oil supplies are shipped out of the Gulf.

Gulf countries have borne much of Tehran's military response after the U.S. and Israel launched a massive aerial campaign against Iran on February 28.

AFP