Saudi Aramco reported a 25% increase in first-quarter profits as ongoing regional conflict disrupted shipping through the Strait of Hormuz, forcing the oil giant to adapt its export strategies.

The company ramped up use of its East-West pipeline, which runs across Saudi Arabia and allows exports to bypass the strategic Strait of Hormuz. The pipeline reached full capacity during the quarter as Aramco sought to maintain oil flows amid heightened risks in the waterway.

Regional tensions have significantly impacted maritime traffic, with a bulk carrier near Qatar reportedly struck by an unknown projectile according to the United Kingdom Maritime Trade Operations. The disruptions have affected multiple energy companies, with Qatar recently sending its first liquefied natural gas shipment through the Strait of Hormuz since the conflict began.

The shipping disruptions have created ripple effects across global trade routes. The Panama Canal has seen revenues increase by up to 15% as ships seek alternative routes to avoid the affected Middle Eastern waterways.

Aramco indicated that reopening normal Hormuz shipping routes would not provide an immediate solution to current export challenges. The company has emphasized that war-driven oil price increases helped offset some negative impacts from export route disruptions during the quarter.

The Strait of Hormuz is a critical chokepoint for global energy supplies, with roughly one-third of all seaborne oil passing through the narrow waterway between Iran and the Arabian Peninsula.