ISLAMABAD: Eight OPEC+ countries agreed to begin unwinding 1.65 million barrels per day in voluntary production cuts with a 206,000 bpd output increase, as Iran’s Foreign Minister Abbas Araghchi said Tehran has no intention of closing the Strait of Hormuz despite rising regional tensions.
According to a press release issued by the Organization of the Petroleum Exporting Countries — Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman — reviewed global market conditions and outlook, adding that they would closely monitor and assess market conditions.
"In their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023," the statement said.
"The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation. The eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that will be monitored by the Joint Ministerial Monitoring Committee (JMMC)," it added.
According to the statement, the group confirmed to "fully compensate for any overproduced volume since January 2024," adding that they would hold monthly meetings to review market conditions, conformity, and compensation. The eight countries will meet on 5 April 2026.
Meanwhile, maritime security agencies said two ships were attacked in the Strait of Hormuz on Sunday as Iran pressed a second day of strikes in response to US-Israeli air raids, reported AFP.
The British maritime security agency UKMTO said one ship off the coast of Oman was struck by an “unknown projectile” above the waterline. A fire initially reported in the engine room was later brought under control.
In a separate incident, another vessel was struck by an unknown projectile, causing a fire that was later extinguished, with the ship intending to continue its voyage. The private maritime security company Vanguard Tech said the second vessel, a tanker, was located about 17 nautical miles northwest of Mina Saqr in the United Arab Emirates.
Iranian state television reported that an oil tanker struck while transiting the Strait of Hormuz was sinking, broadcasting images showing thick black smoke billowing from the vessel.
The Strait of Hormuz remains a key transit point for global energy trade, through which around a quarter of the world’s oil and a fifth of liquefied natural gas shipments pass.
On Saturday, Iran’s Revolutionary Guards announced the closure of the shipping lane, warning it had become dangerous due to US and Israeli attacks.
Speaking to Aljazeera, Iran's Foreign Minister Abbas Araghchi stated that the country has no intention of closing the Strait of Hormuz at present, nor any plans to do “anything that would disrupt navigation in it at this stage.”
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