Saudi Arabia raised the price of its main oil grade for Asian buyers by $2.50 per barrel for April, the largest increase since August 2022. State oil producer Saudi Aramco increased the price of Arab Light crude to $2.50 above the regional benchmark, according to a price list seen by Bloomberg.

This move comes as the widening Middle East conflict and the effective closure of the Strait of Hormuz have disrupted energy markets. The kingdom is diverting exports to its western port of Yanbu as Persian Gulf producers face shipping challenges. Refineries across the Middle East are reducing output as storage tanks fill up and export options dwindle.

The price of heavier crude barrels has surged globally due to these disruptions. US Mars Blend crude traded at its highest premium since 2020 earlier this week, while the North Sea's Johan Sverdrup grade has also experienced significant price increases. These market dynamics reflect the growing impact of regional tensions on global oil supply chains.