OPEC+ Expected To Raise July Oil Output Despite Strait Of Hormuz Disruption Fears: Report

Last Updated:May 21, 2026, 23:53 IST

OPEC plus, including Saudi Arabia and Russia, is expected to approve another July output increase despite Iran related Strait of Hormuz risks, with a final decision due soon.

Major OPEC+ oil producers are expected to approve another increase in output targets for July, despite heightened concerns over potential disruptions in the Strait of Hormuz, according to sources cited by Reuters.

The move would continue a recent trend of gradually raising oil production as the alliance seeks to balance market stability, demand concerns and geopolitical tensions in the Middle East.

Sources said key OPEC+ members, including Saudi Arabia and Russia, are likely to support an increase similar to previous months, although final decisions are expected during upcoming meetings.

The expected production boost comes even as worries grow over possible supply disruptions linked to tensions involving Iran and the strategically crucial Strait of Hormuz — a narrow shipping route through which roughly a fifth of the world’s oil passes.

Recent rhetoric from Iran around regulating or charging for passage through the Strait, coupled with speculation over possible US military action, has raised fears of disruptions that could sharply impact global energy markets.

Despite these risks, OPEC+ producers appear focused on maintaining sufficient supply and preventing excessive price spikes that could weigh on global economic growth.

Analysts say the decision also reflects confidence among major exporters that any immediate disruption to Gulf oil flows remains unlikely, even as geopolitical uncertainty persists.

Oil prices have remained volatile in recent weeks, reacting to developments around Iran, global demand expectations and speculation over OPEC+ production policy.

Market participants are closely watching whether increased output will offset potential supply risks and influence fuel prices in major importing countries, including India.

The alliance has gradually reversed some earlier production cuts after periods of constrained output aimed at supporting crude prices.

An official announcement on July production targets is expected following discussions among OPEC+ ministers in the coming days.

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