Aramco shares rise against background of Iran conflict

• Share price up 4% on Sunday
• Market cap of SAR6.3trn
• Earnings call due this week

Shares in state oil company Saudi Aramco closed at their highest since March 2025 on Sunday on the back of spiking oil prices caused by the US-Israel and Iran conflict, which entered its second week.

The stock closed 4 percent higher at SAR 26.94 on the Saudi Exchange (Tadawul) after touching SAR 27.14 during trading on Sunday. 

The shares are up 13 percent so far this year, implying a market capitalisation of SAR6.3 trillion.

The oil major is due to announce its 2025 results on Tuesday.

Aramco is viewed as a beneficiary of the ongoing conflict with Iran. Oil prices rose to their highest since July 2022, surging on Monday morning as the war has forced Middle Eastern producers to halt or reduce production after the Strait of Hormuz was effectively closed.

Brent crude contracts rose to $114.43 per barrel, while West Texas Intermediate traded around $110.40, after both rose above $90 a barrel at Friday’s close of trading.

Iraq and Kuwait announced oil output cuts after Qatar halted production of liquefied natural gas (LNG) and associated products last week.

Analysts predict the UAE and Saudi Arabia will also have to cut output soon as they run out of oil storage.

However, the UAE state-owned Adnoc confirmed that its operations continue despite regional developments, the Wam news agency reported.  

“Business units are assessing the situation on a product-by-product and transaction-by-transaction basis, considering the ongoing disruption that is affecting shipping through the Strait of Hormuz,” the company said.

Adnoc said onshore operations continue, but sales and trading teams are engaging with affected customers where shipment schedules may be impacted.

Iran on Monday named Mojtaba Khamenei as the supreme leader as the US-Israel struck oil storage facilities in Tehran.

“Supply disruptions are top of mind and include the trade impasse through the Strait of Hormuz, damage done to the region’s oil and gas infrastructure, and Iran’s oil exports, which are likely to drop,” Norbert Rücker, head economics at the private bank Julius Baer, wrote in a note last week.