Aramco, the world’s largest oil company, reported Sunday that its first quarter profits jumped 25% over last year, as it increased exports by using a pipeline that avoids shipping through the Strait of Hormuz, which has been disrupted by the Iran war.
Formally known as the Saudi Arabian Oil Co., Aramco reported a profit of $32.5 billion for the quarter ending March 31. The state-owned company had reported a 12% decline in annual profits in 2025.
“Aramco’s first-quarter performance reflects strong resilience and operational flexibility in a complex geopolitical environment,” Aramco President and CEO Amin H. Nasser said in a statement, adding that the company’s East-West Pipeline, which runs across Saudi Arabia from its Eastern oil fields to the Red Sea, is now operating at its maximum capacity of 7 million barrels of oil per day. Nasser said the pipeline is “helping to mitigate the impact of a global energy shock and providing relief to customers.”
However, it cannot replace the capacity lost to the shipping disruption in the Strait of Hormuz. Before the war, 20% of the world’s traded oil typically flowed through the strait every day, as well as large supplies of natural gas, fertilizer and other petroleum products.
Iran effectively seized control of the critical waterway after the U.S. and Israel attacked it on Feb. 28 and a U.S. naval blockade imposed last month also complicates its use.
“Recent events have clearly demonstrated the vital contribution of oil and gas to energy security and the global economy, and are a stark reminder that reliable energy supply is critical,” Nasser said in a statement. “Despite these headwinds, Aramco remains focused on its strategic priorities and is leveraging both its domestic infrastructure and its global network to navigate disruption.”
Oil tankers sit at anchor offshore in the Strait of Hormuz off Bandar Abbas, Iran, Saturday, May 2, 2026. (Amirhosein Khorgooi/ISNA via AP)
DUBAI, United Arab Emirates (AP) — Iran has sent its response to the latest U.S. ceasefire proposal via Pakistani mediators and wants negotiations to focus on permanently ending the war, Iran’s state-run media said Sunday. Pakistan confirmed receiving it.
Iran seeks to end the war on all fronts, including in Lebanon, where Israel fights the Iranian-backed Hezbollah militant group, and to ensure the security of shipping, its state TV said. Washington’s latest proposal addressed a deal to end the war, reopen the Strait of Hormuz and roll back Iran’s nuclear program, an issue that Tehran would rather discuss later.
The White House had no immediate comment about Iran’s reply. President Donald Trump is giving diplomacy “every chance we possibly can before going back to hostilities,” the U.S. ambassador to the United Nations, Mike Waltz, told ABC.
Iran's new supreme leader, Mojtaba Khamenei, who has not been seen or heard publicly since the war began, “issued new and decisive directives for the continuation of operations and the powerful confrontation with the enemies” while meeting with the head of the joint military command, the state broadcaster reported, with no details.
Meanwhile, the fragile ceasefire was tested when a drone ignited a small fire on a ship off Qatar and the United Arab Emirates and Kuwait reported drones entering their airspace. The UAE blamed Iran. No casualties were reported, and no one immediately claimed responsibility.
Qatar's Foreign Ministry called it a “dangerous and unacceptable escalation that threatens the security and safety of maritime trade routes and vital supplies in the region."
Iran and armed allied groups like Hezbollah in Lebanon have used drones to carry out hundreds of strikes since the war began with U.S. and Israeli attacks on Feb. 28.
Trump has reiterated threats to resume full-scale bombing if Iran does not accept an agreement to reopen the strait and roll back its nuclear program. Iran has largely blocked the strategic waterway that's key to the global flow of oil, natural gas and fertilizer since the war began, rattling world markets.
The U.S. in turn has blockaded Iranian ports and on Friday struck two Iranian oil tankers it said were trying to breach the blockade. Iran’s Revolutionary Guard navy says any attack on Iranian oil tankers or commercial vessels would be met with a “heavy assault” on one of the U.S. bases in the region and enemy ships.
The American military said Sunday that it has turned back 61 commercial vessels and disabled four since the blockade began April 13.
Another sticking point in negotiations is Iran’s highly enriched uranium. The U.N. nuclear agency says Iran has more than 440 kilograms (970 pounds) of uranium that is enriched up to 60% purity, a short, technical step from weapons-grade levels.
In an interview with state media posted late Saturday, an Iranian military spokesperson said its forces were on “full readiness” to protect nuclear sites where uranium is stored.
“We considered it possible that they might intend to steal it through infiltration operations or heli-borne operations,” Brig. Gen. Akrami Nia told the IRNA news agency.
Israeli Prime Minister Benjamin Netanyahu in an excerpt of an interview with CBS scheduled to air later Sunday said the war isn't over because the enriched uranium needs to be taken out of Iran. “Trump has said to me, ‘I want to go in there,’ and I think it can be done physically,” he said.
Russian President Vladimir Putin said Saturday that Moscow’s proposal to take enriched uranium from Iran to help negotiate a settlement remains on the table.
The majority of Iran’s highly enriched uranium is likely at its Isfahan nuclear complex, the International Atomic Energy Agency director-general told The Associated Press last month. The facility was bombarded by U.S.-Israeli airstrikes in the 12-day war last year and faced less intense attacks this year.
Pakistan oversaw face-to-face talks between the U.S. and Iran last month and continues to pursue mediation. In rare public comments, army chief Field Marshal Asim Munir said Islamabad remains committed to helping end the conflict. Prime Minister Shehbaz Sharif spoke by phone with his Qatari counterpart.
The UAE's Defense Ministry said it shot down two drones and blamed Iran.
In Kuwait, Defense Ministry spokesperson Brig. Gen. Saud Abdulaziz Al Otaibi said hostile drones entered Kuwait’s airspace and forces responded “in accordance with established procedures.” The ministry did not say where the drones came from.
Qatar's Defense Ministry said a drone targeted a commercial ship coming from Abu Dhabi, setting a small fire that was extinguished. The United Kingdom Maritime Trade Operations Center said the attack happened 23 nautical miles (43 kilometers) northeast of the capital, Doha. It gave no details about the ship’s owner or origin, and there was no claim of responsibility.
Several attacks against ships in the Persian Gulf have occurred over the past week, and a U.S. effort to “guide” ships through the strait was soon paused.
South Korea announced initial findings from a investigation that said two unidentified airborne objects struck the South Korean-operated vessel HMM NAMU about one minute apart while it was anchored in the Strait of Hormuz last week, causing an explosion and fire. A foreign ministry spokesperson said officials have yet to determine who was responsible.
Magdy reported from Cairo. Associated Press writers Munir Ahmed in Islamabad; Melanie Lidman in Tel Aviv, Israel; Tong-hyung Kim in Seoul; Julia Frankel in Jerusalem; and Josh Boak in Washington contributed to this report.
Container ships sit at anchor in the Strait of Hormuz off Bandar Abbas, Iran, Saturday, May 2, 2026.(Amirhosein Khorgooi/ISNA via AP)
