Saudi Arabia Cuts July Crude Prices for Asia Even as Hormuz Crisis Chokes Gulf Exports

By Giulia Petroni

Top oil exporter Saudi Arabia sharply cut the price of its main oil grade for Asia even as the near-closure of the Strait of Hormuz continues to choke off supplies out of the Persian Gulf and tighten global markets.

State oil producer Saudi Aramco on Monday set the official selling price for July loadings of its Arab Light crude to Asia--the largest destination for Middle Eastern crude--at $9.50 above the Oman/Dubai regional benchmarks, down from a premium of $15.50 a barrel in June.

With shipping through Hormuz severely constrained, Saudi Arabia has been rerouting crude exports via its East-West pipeline to the Red Sea port of Yanbu.

Saudi crude pricing is closely monitored by traders as a key indicator of the kingdom's outlook on regional demand. The latest cuts come as China drastically lowered crude oil imports as weaker refining activity and lower refined-product exports weigh on domestic operations.

Prices for other grades of Saudi oil sold to Asia were also cut by $6 a barrel. Aramco slashed prices for grades sold to Northwest Europe and the Mediterranean by $10 a barrel above regional benchmarks, while U.S. customers saw a $2 per barrel decrease.

On Sunday, the Organization of the Petroleum Exporting Countries and its allies agreed to raise oil output again in July, a fourth consecutive monthly increase.

The move, however, is widely seen as symbolic, with the war in the Middle East continuing to disrupt flows through the Strait of Hormuz--a critical chokepoint that used to carry about a fifth of the world's oil supply--while Russia has sustained significant damage to its energy infrastructure.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

June 08, 2026 04:17 ET (08:17 GMT)