OPEC announced a sharper cut to its oil‑demand outlook after a near‑shutdown of the Strait of Hormuz forced Gulf producers to trim output and redirect shipments.

April crude fell 1.73 million barrels per day to 18.98 million, while OPEC+ output dipped 1.74 million barrels to 33.19 million. Saudi Arabia, the largest contributor, saw the steepest drop despite rerouting to Yanbu.

The contraction signals tighter supply that could lift prices, but also highlights the fragility of Gulf exports amid geopolitical pressure. Investors will watch how the cartel adjusts quotas in coming months as regional tensions persist.