Key facts
- Iran's joint military command warned oil tankers in the Strait of Hormuz to follow Tehran-approved routes or face a forceful response.
- Maritime traffic in the Strait of Hormuz remains fragile, with daily crossings significantly lower than pre-war averages.
- OPEC+ plans to increase production quotas by 188,000 barrels daily for August.
- The UAE has exported record volumes of crude oil in June, partly from stored oil.
- The UAE recently quit the OPEC+ group after six decades as a member.
Iran's joint military command has issued a stern warning, stating that oil tankers transiting the Strait of Hormuz must adhere to routes approved by Tehran or face an 'immediate and forceful response.' The command also cautioned that any U.S. interference would trigger a 'rapid and decisive reaction.' This threat comes amid fragile recovery in maritime traffic through the vital chokepoint, with daily crossings significantly lower than pre-war averages.
Meanwhile, OPEC+ plans to boost production quotas for August by another 188,000 barrels daily, following a similar increase for July. However, the market has shown little reaction to these planned hikes, which have largely remained on paper due to previous hostilities and supply disruptions. The UAE, which recently quit OPEC+ after six decades, has reported record crude export volumes in June, partly attributed to drawing down oil stored during the conflict. Analysts question OPEC's relevance amid rising U.S. production, which has reached record levels.