OPEC+ has approved an additional increase in its oil production targets, adding 188,000 barrels per day starting in August, the group announced Sunday. This decision follows similar output hikes in June and July amid recovering exports through the Strait of Hormuz, a critical oil shipping route that was partially closed earlier this year.

During an online meeting, the alliance—which comprises the seven core members of OPEC and allied producers including Russia—confirmed the incremental rise in quotas as global oil markets continue to adjust to supply disruptions triggered by the ongoing conflict involving the United States, Israel, and Iran. Since April, these key producers have collectively raised their output targets by nearly 800,000 barrels per day as they seek to stabilize the market.

Despite these official increases, actual production has lagged behind planned quotas due to the closure of the Strait of Hormuz to tanker traffic. This closure, related to hostilities in the region, particularly impacted major OPEC+ producers such as Saudi Arabia, Kuwait, and Iraq. OPEC data show that output declined sharply from 42.77 million barrels per day in February to 33.13 million barrels per day in May. Production began to recover in June following coordinated efforts by the United States to support the United Arab Emirates and other members in resuming oil exports, though output remains below prewar levels.

Oil prices have fluctuated with these supply changes. Brent crude recently traded near $72 per barrel, a significant drop from peaks exceeding $120 per barrel seen earlier this year. Prices have been influenced not only by supply constraints but also by weaker demand from China, increased exports from producers outside the Middle East, and an unprecedented release of global strategic reserves orchestrated by the International Energy Agency.

Market analysts note that the ongoing situation remains closely tied to logistics through the Strait of Hormuz. Giovanni Staunovo, an analyst at UBS, remarked that the focus in the near term will be on how many tankers can navigate the passage and the pace of recovery in demand and Chinese crude imports.

Additionally, signs of diplomatic progress have lent cautious optimism to the market. A memorandum of understanding between Washington and Tehran aimed at ending hostilities has contributed to expectations that supply disruptions may eventually ease, supporting the gradual restoration of normal market conditions.