OPEC+ Announces Production Boost Amid Iran-Israel Tensions and Strait of Hormuz Supply Concerns

In a major meeting held on Sunday, the Organization of the Petroleum Exporting Countries (OPEC) + decided to make a major change in its production policy. OPEC + will now launch additional barrels of crude oil every day from April in response to the ongoing military conflict between Iran and Israel and the threat of oil supplies being cut off in the Strait of Hormuz. Since the attacks on Iran by Israel and the United States on 28 February, the global market has been in turmoil. Brent crude prices were expected to rise sharply. The Voluntary Group of Eight (V8) countries, led by Saudi Arabia and Russia, took this step to maintain market stability. OPEC +, which includes Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, however, believes that the prices of the extra oil supply can be kept within the limits of their official statements. OPEC + continues to monitor the market.