Saudi Aramco CEO warns oil markets may not recover until 2027 due to Hormuz disruptions

The CEO of Saudi Arabia’s state-owned oil company is warning that the energy sector will take time to recover from the Iran war’s impact on supply as oil output was slashed due to the ongoing disruptions to shipping in the Strait of Hormuz.

Saudi Aramco CEO Amin Nasser said on an earnings call Monday that the global energy market has lost about 1 billion barrels of oil supply during the crisis, though efforts to reroute shipments to avoid using the Strait of Hormuz and releases from countries’ strategic petroleum reserves have eased some of the supply issues.

“The energy supply shock that began in the first quarter is the largest the world has ever experienced,” Nasser said.

He said that the world is now losing about 100 million barrels of oil supply per week as long as the Strait of Hormuz remains largely closed to tanker traffic. If the disruption continues for