OPEC and its allies approved their fifth consecutive monthly production increase, adding roughly 188,000 barrels a day in August as the cartel unwinds recent years of supply curbs. Seven countries including Saudi Arabia and Russia will implement the boost, signaling confidence in market stabilization after months of supply disruptions.

The move follows gradual recovery of shipping traffic through the Strait of Hormuz, a critical chokepoint that normally transports about one-fifth of global oil. Daily vessel crossings stabilized between 30 and 60 ships by early July, averaging roughly 40 per day according to Kpler data. This rebound came after Washington and Tehran signed an interim agreement in mid-June to halt hostilities and reopen the waterway.

Previous OPEC+ increases were largely symbolic because the strait's temporary closure and damaged energy infrastructure forced major exporters to reduce shipments anyway. With maritime flows improving, the new production hikes could actually reach markets.

Uncertainty persists over the strait's future governance and whether regional tensions might flare again, leaving investors cautious about the sustainability of this supply recovery.