Saudi Arabia raises price on main grade oil to Asia as Iran war escalates

As Iran's impending closing of the Strait of Hormuz restricts regional energy shipments and uncertainty over the length of the conflict shakes markets, Saudi Arabia increased the price of its primary oil grade to Asia to a record.

As per a Bloomberg report, state oil producer Saudi Aramco would raise flagship Arab Light crude prices for May shipments to a premium of $19.50 over the benchmark for Asian refiners. According to a Bloomberg Report, traders and refiners expected a premium of $40 per barrel.

Due to the Islamic Republic's effective closure of the crucial Strait of Hormuz and obstruction of its neighbours' supplies from the Persian Gulf, the US and Israeli war against Iran has completely disrupted the world's energy markets. Fuel costs have skyrocketed from the US to Europe and Asia, and Brent oil has increased by more than 50%.

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