With gas prices climbing across much of the world and the Iran war continuing to disrupt global energy flows, the eight countries who are a part of the Organization of the Petroleum Exporting Countries (OPEC) met on Sunday to implement a new round of voluntary oil‑production adjustments, reaffirming their commitment to stabilizing global energy markets.
Why It Matters
On February 28, the United States and Israel targeted key military targets in Iran and killed Supreme Leader Ayatollah Ali Khamenei and other government leaders. Iran responded by launching missiles and drones targeting Israel and several Gulf Arab states that host U.S. armed forces as well as effectively closing the Strait of Hormuz.
The Strait of Hormuz, a narrow waterway linking the Persian Gulf to global shipping lanes, is one of the world’s most critical chokepoints for energy supplies. Roughly one‑fifth of global oil shipments pass through the strait, and any prolonged disruption could have major consequences for global markets.
The blockade has already driven up oil prices and domestic pump costs, raising fears that alongside disruption to other shipments—this could soon give way to an economy-wide inflation surge.
Even modest shifts in OPEC output can influence global prices, supply expectations and economic planning for both producers and consumers.
What to Know
In a statement issued Sunday, OPEC announced the eight member countries, Saudi Arabia, Russia, Iraq, the United Arab Emirates (UAE), Kuwait, Kazakhstan, Algeria and Oman, met virtually to review market conditions and outlooks.
They agreed to adjust production by 206,000 barrels per day (bpd), drawing from the 1.65 million bpd voluntary cuts first announced in April 2023.
The adjustment will start in May, with the option to restore the 1.65 million bpd “in part or in full” depending on market conditions.
The group emphasized maintaining flexibility—including the ability to increase, pause or reverse previous voluntary cuts, including the 2.2 million bpd announced in November 2023.
While the move won’t likely decrease gas prices, it should serve as a buffer from ongoing gas price increases, some experts said following a similar move announced by OPEC last month.
Countries reiterated their commitment to full conformity with the Declaration of Cooperation and pledged to compensate for any overproduction since January 2024.
The group also highlighted the importance of protecting international maritime routes to ensure uninterrupted energy flows and expressed concern about attacks on energy infrastructure, warning that damage is costly, slow to repair, and destabilizing to global supply.
What People Are Saying
White House spokesperson Kush Desai previously told Newsweek: “President Trump has always been clear about temporary disruptions as a result of Operation Epic Fury. While the U.S. Military continues making astonishing progress neutralizing the Iranian terror regime, the Trump administration remains focused here on the homefront implementing President Trump’s proven economic agenda of deregulation, tax cuts, and energy abundance.
“This agenda created historic prosperity in President Trump’s first term, and it’s again raising real wages and securing trillions in investments. After Operation Epic Fury’s objectives have been realized and the world is a safer place, America is set to achieve new highs.”
AAA said in a press release last week: “Crude oil prices have been surging, surpassing $100/barrel, as the conflict in the Middle East continues and the Strait of Hormuz remains closed. In 2022, gas prices remained elevated from March through August, peaking in June when the national average reached a record of $5/gallon for one week.”
What Happens Next
OPEC will hold monthly meetings to reassess market conditions, monitor conformity and review compensation progress. Its next meeting is scheduled for May 3 where it will evaluate whether further adjustments—or reversals—are needed as global demand, geopolitical risks and supply disruptions evolve.
The Joint Ministerial Monitoring Committee (JMMC) will continue overseeing compliance, according to the statement from OPEC.