Saudi Arabia has sharply reduced the price of its flagship Arab Light crude for Asian buyers, marking its largest monthly price cut in more than 26 years as global oil markets stabilize following the resumption of shipping through the Strait of Hormuz.

According to international media reports, state-owned Saudi Aramco lowered the official selling price of Arab Light crude for August by $11 per barrel, setting it at a $1.50 per barrel discount to the Oman and Dubai benchmark. In July, the same crude grade was sold at a $9.50 per barrel premium.

The move reflects improving oil supplies from the Gulf and the return of tanker traffic through the Strait of Hormuz, one of the world's most important energy corridors. The waterway carries roughly 20 to 25 percent of global oil and gas shipments, making it vital for international energy markets.

Earlier this year, conflict involving the United States, Israel and Iran disrupted shipping in the region, fueling fears of supply shortages and sending crude oil prices sharply higher. Analysts had warned that prolonged disruptions could push oil prices above $150 per barrel.

With shipping routes now operating more normally and Gulf exports recovering, market sentiment has improved. OPEC+ has also approved an additional 188,000 barrels per day of production from August, further boosting global supply.

Lower crude prices are expected to benefit major oil-importing countries, including China, India, Pakistan, Japan and South Korea, by reducing fuel import costs and easing inflationary pressures. Brent crude is currently trading near $72 per barrel, while US WTI crude is hovering around $69 per barrel, well below the highs seen during the regional conflict.