OPEC+ finalized an agreement on Sunday to increase oil production quotas by 188,000 barrels per day starting in June, marking the third consecutive monthly hike amid the ongoing closure of the Strait of Hormuz. The decision involves seven key producers: Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman.

The group announced the adjustment in a communique following a virtual meeting, describing it as part of their collective commitment to market stability. However, the increase remains largely symbolic because the Iran war continues to block shipments through the Strait of Hormuz, preventing most Gulf oil from reaching global markets. Iran closed the vital waterway in mid-April in response to U.S. military actions, drastically reducing traffic and driving up crude prices.

This follows similar quota boosts in prior months. On March 1, OPEC+ raised targets by 206,000 barrels per day, effective April. Another 206,000-barrel-per-day increase for May was approved on April 5. The June figure is slightly lower, adjusted after the United Arab Emirates opted out of the hikes.

The Hormuz disruption stems from the 2026 Iran war, which began in late February with escalating tensions between Iran, Israel, and the United States. Iran mined the strait and imposed a blockade, countered by U.S. naval operations. A fragile ceasefire has held since early April, but the strait remains effectively closed to commercial shipping, with clearance efforts projected to take months.

OPEC+ output averaged 35.06 million barrels per day in March, down sharply from prior months due to the conflict's impact on facilities and exports. The group emphasized flexibility in implementation, allowing adjustments based on market conditions and infrastructure repairs.

Analysts view the hikes as signaling OPEC+'s intent to rebuild supply once the strait reopens, countering shortages that have pushed oil prices higher. The moves occur without the UAE's participation, reflecting shifts in alliance dynamics amid the crisis. Global markets watch closely as disruptions threaten energy security and economic stability.