OPEC Boosts Output Amid Iran Export Disruptions and Rising Oil Market Volatility

OPEC has moved to increase crude production by 960,000 barrels per day by June''s end, reversing previous cuts in response to escalating supply risks. The decision comes as Iran''s oil exports—already down to 1.7 million barrels daily in May—face further disruption following attacks on critical infrastructure. While Iran''s output represents less than 2% of global demand, the market''s razor-thin margins amplify the impact of any supply shock.

The cartel may need to ramp up to 2.2 million barrels daily if damage to Iran''s export systems worsens. Oil prices, previously stable at $75-$80 per barrel, now face upward pressure as traders weigh whether OPEC''s intervention can outpace potential shortages. The Strait of Hormuz—a vital chokepoint handling 20% of global oil shipments—remains the wildcard, with any blockade threatening catastrophic supply chain disruptions.