August 2, 2005 -- RIYADH, Saudi Arabia — King Fahd, who moved Saudi Arabia closer to the United States but ruled the nation in name only since suffering a stroke in 1995, died yesterday, and his half-brother was quickly named to replace him.

The first change in the throne in 23 years set off a jockeying for position in the world's largest oil producer.

The newly appointed monarch, 81-year-old Crown Prince Abdullah, has been the kingdom's effective ruler for 10 years and is the main force behind unprecedented reform steps and a two-year crackdown on al Qaeda-linked militants.

"With all sorrow and sadness, the royal court in the name of his highness Crown Prince Abdullah bin Abdul Aziz and all members of the family announces the death of the custodian of the two holy mosques, King Fahd bin Abdul Aziz," according to a statement read on state-run Saudi TV.

Fahd died at the King Faisal Specialist Hospital in Riyadh, where he was admitted on May 27 for unspecified tests.

The White House was informed of Fahd's death about 2:30 a.m.

President Bush was told when he began his work day in the Oval Office about 7 a.m., spokesman Scott McClellan said.

He said Bush called Abdullah and expressed condolences over Fahd's death and congratulations on his accession.

Saudi television, which said the king was 84, broke with regular broadcasting to announce Fahd's death.

Koranic verse recitals followed the announcement by the information minister, Iyad bin Amin Madani, whose voice wavered with emotion as he read the statement.

By yesterday afternoon, hotels were packed as Saudis flocked to the capital to express their condolences and congratulate the new king.

Abdullah asked regional governors to accept the people's good wishes on his behalf to spare them the ordeal of traveling in temperatures hovering close to 122 degrees.

Crude-oil prices soared past $61 a barrel as markets reacted to Fahd's death. The Saudi stock market closed after the news.

Arab nations announced mourning periods, an Arab summit in Cairo was postponed, and Mideast leaders prepared to attend memorial ceremonies for Fahd scheduled for today.

The leaders, including Egypt's Hosni Mubarak and Jordan's King Abdullah, were to attend prayers in the afternoon, then head to Riyadh's al-Oud cemetery for the burial.

The Saudi ambassador to Britain, Prince Turki bin al-Faisal, said Fahd's death won't change oil policy.

"The crown prince, who has become king, worked closely with the late king in implementing the policies of Saudi Arabia both externally and internally," al-Faisal told a news conference in London.

"So I cannot imagine that there will be any particular change in that policy but rather a continuation."