The situation in Hormuz is expected to ease, and Saudi Arabia has lowered crude oil prices for Asia.

Saudi Arabia has lowered its key crude oil prices for Asia, while negotiations are underway for an agreement aimed at easing shipping pressures in the Strait of Hormuz. Despite the threats from the Houthi forces jeopardizing alternative routes for transporting crude oil eastward via the Red Sea, Saudi Arabia has still decided to cut prices. A pricing schedule shows that Saudi Aramco will reduce the price of Arab Light crude oil delivered to Asian customers next month by 50 cents per barrel, bringing it to $2 per barrel below the regional benchmark price. A previous survey had indicated that traders expected Saudi Aramco to maintain its flagship crude prices unchanged. This week, global benchmark Brent crude oil prices have significantly dropped, currently trading close to $80 per barrel.