Eight OPEC+ countries agreed on Sunday to raise oil production by 206,000 barrels per day starting in April, resuming a gradual unwinding of prior voluntary cuts.

The decision came from Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman during a virtual meeting to review market conditions. They cited a steady global economic outlook, healthy market fundamentals and low oil inventories as reasons to proceed. This adjustment ends a three-month pause in production increases that ran through March due to seasonal factors.

The group had previously raised quotas by about 2.9 million barrels per day from April through December 2025 before halting further hikes. The latest move partially reverses additional voluntary adjustments of 1.65 million barrels per day announced in April 2023, with flexibility to pause or reverse based on market evolution.

The announcement occurred against a backdrop of escalating conflict in the Middle East. U.S. and Israeli strikes on Iran prompted retaliation, halting shipments through the Strait of Hormuz, which handles over 20% of global oil transit. Hundreds of tankers anchored as navigation warnings issued, disrupting flows from key producers.

Oil prices surged in response. Brent crude jumped about 10% Sunday to trade around $80 per barrel over the counter, after closing Friday near $73, its highest since July 2025. West Texas Intermediate rose to about $72. Analysts warned prolonged disruptions could push prices above $100 per barrel, with Middle East leaders echoing similar concerns to Washington.

The modest 206,000-barrel increase, less than 0.2% of global supply, drew mixed analyst views. Some noted limited immediate market impact given spare capacity constraints outside Saudi Arabia and the UAE, plus export challenges until Gulf shipping normalizes. "Prices will respond to developments in the Gulf and the status of shipping flows, not to a relatively small increase in output," said Jorge Leon of Rystad Energy.

OPEC+ affirmed commitment to market stability, planning monthly reviews and a next meeting on April 5. They also intend to compensate overproduction since January 2024 and monitor conformity via the Joint Ministerial Monitoring Committee.