Shares of Saudi Aramco surged almost 2% on Monday, March 9, to its 52-week high, extending gains after a 4% rally in the previous session as the escalation of the war pushed crude prices sharply higher amid fears of significant disruptions to energy supply from the Middle East and boosted sentiment for energy producers.
The stock climbed as much as 1.7% in today’s deals to its year high of 27.4 SAR. The stock has rallied nearly 6% in 2 sessions. In the previous session, shares of the state-backed oil giant rose as much as 4.9% intraday before trimming gains to close 4.1% higher. The rally marked the stock’s strongest performance since April 2023.
The rally in Aramco shares came after Brent crude, the global oil benchmark, surged more than 25% to nearly $120 per barrel amid growing geopolitical tensions and concerns that oil shipments from the Persian Gulf could be disrupted.
Crude oil price today
Global crude prices surged as the conflict expanded across the region, raising fears that oil production and shipping could face severe disruptions.
Earlier on Monday, jumped to $119.50 per barrel before easing slightly to trade around $112.98. Meanwhile, West Texas Intermediate (WTI) — the US benchmark crude — climbed to $119.48 per barrel before retreating to $110.17.
The sharp rise in oil prices reflects growing concerns that the conflict could disrupt supply from the Persian Gulf, a region responsible for a large share of the world’s energy exports.
One of the biggest concerns for global energy markets is the Strait of Hormuz, a narrow waterway that serves as a crucial shipping route for oil and gas.
According to independent research firm Rystad Energy, around 15 million barrels of crude oil — roughly 20% of the world’s supply — pass through the Strait of Hormuz every day.
However, tanker movements through the strait have slowed significantly due to fears of Iranian missile and drone attacks, creating a potential bottleneck for global oil shipments.
The waterway connects major oil exporters including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran, making it one of the most strategically important energy routes in the world.
Middle East tensions intensify supply risks
have become increasingly volatile as the conflict spreads to key oil-producing nations.
Several Gulf countries have already begun adjusting output. Iraq, Kuwait and the UAE have reduced oil production, partly because export capacity has been constrained as storage facilities fill up due to shipping disruptions.
At the same time, oil and gas infrastructure across the region has been targeted in attacks since the conflict began, further intensifying concerns about supply shortages.
Iran launched additional attacks on Israel and several Gulf states on Monday, just hours after Iranian state television reported that Mojtaba Khamenei, son of the country’s late supreme leader and long viewed as a possible successor, had been formally named the next supreme leader.
Saudi Arabia has also issued strong warnings to Tehran, saying Iran would be the “biggest loser” if it continued attacking Arab countries.
The warning followed a fresh drone strike targeting the massive Shaybah oil field in Saudi Arabia, a key energy installation near the Abu Dhabi border.
Aramco infrastructure under pressure
Saudi Aramco, the world’s largest producer, has already faced disruptions as several of its facilities have come under attack. Drones were intercepted near the Shaybah oil field, while another strike on Saturday caused minor damage at the company’s Berri facility, according to reports.
The two fields together have the capacity to produce about 1.5 million barrels of oil per day. Meanwhile, Aramco’s Ras Tanura refinery, the largest refinery in Saudi Arabia, was forced to halt operations last week following a drone strike in the area.
To avoid potential disruptions in the Strait of Hormuz, Aramco has begun rerouting oil shipments through Red Sea export facilities on Saudi Arabia’s western coast. Last week, Aramco also raised the price of its main crude grade for Asian buyers for April delivery, marking the largest increase since August 2022 amid the escalating geopolitical turmoil.
(With inputs from Bloomberg)