OPEC+ Approves 547,000bpd Output Hike Amid Gulf Crisis

OPEC+ has agreed to raise oil output by 547,000 barrels per day in September 2026, as escalating conflict in the Gulf threatens to push crude prices higher.

Key members, led by Saudi Arabia and Russia, will contribute about 206,000 barrels per day, surpassing the smaller monthly increments of 137,000 barrels seen in late 2025.

The decision comes amid turmoil following US-Israeli strikes on Iran, which reportedly killed Supreme Leader Ayatollah Ali Khamenei and disrupted traffic through the Strait of Hormuz, a critical oil transit route.

Several producers, including Saudi Arabia, Iraq, Kuwait, and the UAE, had already begun boosting exports last month, echoing their response to last June’s strikes on Iran’s nuclear facilities.

The Gulf crisis has slowed maritime traffic, raising concerns about whether member nations can sustain higher exports despite formal quota increases.

OPEC+ had paused planned supply hikes through Q1 2026 to stabilise markets amid surplus conditions and uncertainty over Venezuelan oil supplies. The latest move reflects the bloc’s reactive approach to geopolitical risks.

Analysts say the decision highlights the delicate balance OPEC+ must strike between supporting global supply and responding to regional instability that could disrupt markets.

With OPEC+ controlling a significant share of global oil supply, its decisions carry major implications for price volatility, revenue streams, and global market stability.