Saudi Aramco Q1 profit jumps 26% as East-West pipeline runs full

Saudi Aramco reported a 26% rise in first-quarter net profit, beating analyst forecasts as its East-West pipeline carrying crude from the kingdom's Eastern Province to Red Sea export terminals operated at full nameplate capacity for the first time. The state-owned producer said the link absorbed cargoes that would otherwise have transited the Strait of Hormuz.

Since the Iran war began, tanker traffic through the strait has been intermittently disrupted, sending Brent prices into wide swings. Aramco executives told investors that rerouted barrels kept Asian and European refiners supplied without interruption, even as insurance premiums for Gulf shipping climbed.

The company maintained its quarterly dividend and signalled that second-quarter output could rise further if hostilities ease. Analysts cautioned that the trajectory of talks between Washington and Tehran will continue to dictate near-term oil pricing more than corporate fundamentals.