Asian refiners have reduced spot purchases of Middle East crude for loading this month and next, ending a three-week spree that saw millions of barrels of UAE, Saudi, and Iraqi crude snapped up. Lingering uncertainties about Strait of Hormuz navigability and high freight costs have deterred buyers, while most refiners have already secured enough non-Middle Eastern crude for June and July arrivals. Traders say Middle Eastern producers would need to offer significant discounts to attract Asian buying, but elevated insurance and tanker costs make such discounts uneconomical. Meanwhile, benchmark Middle East crude grades have slumped into discounts to swaps, opening arbitrage to the US and Europe, as the US-Iran memorandum of understanding raises hopes for recovering supply. Kuwait expects to raise output to 2 million barrels per day within a week, Iraq targets restoring southern production above 3 million barrels per day within two months, and Iran is pitching oil to Asian buyers outside China under a temporary two-month US sanctions waiver, though refiners are not rushing to buy given ample stocks and waiver uncertainty.