New Delhi, April 6 -- Saudi Arabia has sharply increased the price of its key oil grade sold to Asian buyers, reaching a record premium, as escalating tensions in the Middle East and concerns over Iran potentially restricting the Strait of Hormuz disrupt global energy markets.

The state-owned company Saudi Aramco raised the price of its flagship Arab Light crude for next month to a premium of $19.50 above regional benchmarks for Asian refiners, according to a Bloomberg-reported price list.

However, this increase was still only about half of what analysts had expected in a Bloomberg survey. Traders noted that pricing was especially difficult this month due to extreme volatility in Middle Eastern oil benchmarks during the conflict, along ...