Saudi Arabia raised all prices to record premium as war hits market

April 6, 2026 (MLN): Saudi Arabia has set a record-high premium for its Arab Light crude sold to Asia, showing escalating tensions in the Persian Gulf and disruptions at the Strait of Hormuz.

State-owned Saudi Aramco declared that May shipments of its flagship Arab Light crude will carry a premium of $19.50 per barrel above regional benchmarks for Asian refiners.

While unprecedented, this falls short of the $40-per-barrel premium that market participants had anticipated, highlighting the volatility gripping global oil markets, according to Bloomberg.

Traders note that prices of some Middle Eastern crude grades dropped in late March, tempering Aramco’s price hike.

Additionally, while Aramco’s oil is officially priced for loading at its Ras Tanura port, ongoing geopolitical disruptions have forced exports through the Red Sea port of Yanbu, adding logistical costs for buyers.

The market shock follows US and Israeli military strikes on Iran, which have effectively blocked the Strait of Hormuz, a critical route for regional oil exports.

The disruption has sent Brent crude surging over 50% and triggered sharp spikes in fuel prices worldwide.

Saudi Arabia and the UAE remain the only Gulf producers with major export routes that bypass the Hormuz chokepoint.

Aramco’s Red Sea pipeline, running to Yanbu, has reached its maximum capacity of 7 million barrels per day, with around 5m barrels currently exported daily, roughly 70% of pre-conflict levels.

Aramco CEO Amin Nasser confirmed that the company has scaled back production of Medium and Heavy crude grades, concentrating on Light and Extra Light barrels for export through Yanbu to meet demand while navigating the ongoing crisis.

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