Saudi Arabia has raised the price of its main crude grade for Asian buyers to a record high, as the Middle East conflict enters its sixth week and continues to disrupt global energy flows worldwide.The kingdom’s oil giant Saudi Aramco has set the cost of its Arab Light crude for May sales to Asia at a premium of $19.50 per barrel over the benchmark. However, even with this hike, the premium is still lower than the $40 per barrel expected by traders and refiners in a Bloomberg survey.
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The move comes amid escalating tensions in the region, with no immediate signs of de-escalation. Earlier on Saturday, US President Donald Trump had threatened to strike Iranian infrastructure if it does not opens the Strait. In a post on Truth Social on Sunday, he said, “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!” He later told Fox News there was a “good chance” Iran would agree to a deal on Monday.
Iran also hit back sharply, threatening that it will react “in kind,” in case its sites are attacked. “Our armed forces have made it clear that in case Iran’s infrastructure is attacked, we would react in kind,” Esmail Baghaei said.As the crisis continues to boil, oil prices have stayed well above the $100 per barrel cost, jumping to $110. Brent crude prices have risen by more than 50%, with fuel prices also increasing across the US, Europe and Asia.
On Monday, West Texas Intermediate rose 1.86% to $113.62 per barrel in early trade, while Brent crude gained 1.16% to $110.30 per barrel, staying above the $100 mark.Markets had already reacted before the weekend. On Thursday, ahead of Good Friday, both oil benchmarks saw sharp gains. WTI rose more than 11%, while Brent climbed nearly 8%, marking their biggest increases since 2020 after signals that attacks on Iran would continue.
