OPEC+ approved a modest output increase despite a Strait of Hormuz blockade shutting in 10-13 million barrels per day with no resolution in sight.
OPEC+ agreed to raise its production quota by 188K barrels per day for July, scheduling another meeting for August output on July 5. The move comes as 10-13 million barrels per day remain offline due to the ongoing blockade of the Strait of Hormuz, with no clear end to the standoff.
Negotiations between Iran and the U.S. appear deadlocked, as Washington refuses to unfreeze Iranian assets or lift sanctions upfront. Iran insists nuclear materials will not be part of any deal to reopen Hormuz until funds are released. Tensions escalated over the weekend with military strikes in Beirut, further complicating diplomatic efforts.
The quota increase contrasts sharply with the actual supply disruption, highlighting the gap between OPEC+ policy and geopolitical realities. Markets remain focused on the blockade’s impact on global oil flows rather than the symbolic output adjustment.