OPEC+ prepares third consecutive output hike amid Middle East tensions. Seven member nations plan to increase oil production targets by approximately 188,000 barrels per day in June, signaling readiness to boost supplies once regional conflict subsides. However, the increase remains largely symbolic as the U.S.-Iran war continues disrupting critical Gulf exports through the Strait of Hormuz. Saudi Arabia, Iraq, Kuwait, and other producers face severe export constraints, causing global crude output to drop significantly. Oil prices surged above $125 per barrel this week, reaching four-year highs, with analysts warning of imminent jet fuel shortages and accelerating global inflation within one to two months. Market normalization depends on Hormuz reopening and could take weeks or months to fully stabilize supply chains worldwide.
