Aramco Cuts Asian Oil Prices as Hormuz Shipping Deal Nears

Saudi Aramco has reduced the price of its flagship crude oil for Asian buyers, cutting the September official selling price for Arab Light by 50 cents per barrel. This puts it at a $2 discount to the regional benchmark.

The move comes as Iran reportedly nears an agreement with Oman on a shipping route through the Strait of Hormuz, which could boost oil supplies and push prices lower. Brent crude has dropped to around $80 per barrel, down roughly 20% in two weeks, as traders bet that more Persian Gulf barrels may soon reach the market.

Despite this optimism, Saudi exports through Hormuz remain constrained, and previous attempts to boost traffic have been hindered by renewed fighting and attacks on vessels. Aramco has kept exports near 5 million barrels per day, about 70% of normal volumes, while relying heavily on Yanbu on the Red Sea to keep crude moving.