Vienna | Seven countries in the OPEC+ grouping of oil-producing countries — including Saudi Arabia and Russia — say they've decided to a modest increase in production starting in June as part of a commitment to “market stability.”
The commitment from the seven countries, also including Algeria, Iraq, Kazakhstan, Kuwait and Oman, to raise production by 188,000 barrels per day comes after a virtual meeting they held on Sunday.
The move is mostly symbolic because it comes as Iran blocks the Strait of Hormuz at the mouth of the Persian Gulf, where about a fifth of the world's trade in oil and natural gas typically passes, in the midst of the US-Israeli war.
That has stopped much of the oil shipped from Gulf producers and knocked millions of barrels a day off the global market.
It also follows a decision by the United Arab Emirates to leave the OPEC oil cartel, shaking up the 65-year-old alliance that produces some 40 per cent of the world's crude oil and exerts major influence over the price of energy around the globe.
Iran is one of OPEC's 12 member countries, and Russia is not — it works with the Vienna-based oil producers alliance through the OPEC+ grouping.
The seven countries said they would hold monthly meetings “to review market conditions, conformity, and compensation” and plan to meet again on June 7.
Dubai | A bulk carrier near the Strait of Hormuz has reported being attacked by multiple small craft, the British military's United Kingdom Maritime Trade Operations center said Sunday, marking at least two dozen attacks in and around the strait since the Iran war began.
All crew aboard the unidentified carrier were safe after the attack off Sirik, Iran. The report warns vessels to transit with caution.
Iranian officials have asserted that they continue to control the strait and that ships not affiliated with the United States or Israel can pass if they pay a toll.
There was no immediate claim of responsibility for the attack.
The fragile three-week ceasefire appears to be holding, though President Donald Trump on Saturday told journalists that further strikes remained a possibility.
Iran stands firm on Strait of Hormuz
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Trump has offered a plan to reopen the Strait of Hormuz at the mouth of the Persian Gulf, where about a fifth of the world's trade in oil and natural gas typically passes, along with fertilizer badly needed by farmers around the world.
Iran's grip on the strait, imposed after the US and Israel launched the war on Feb. 28, has shaken global markets.
Iran's deputy parliament speaker on Sunday said Tehran “will not back down from our position on the Strait of Hormuz, and it will not return to its prewar conditions.” Ali Nikzad, who has no decision-making power in parliament, spoke while visiting port facilities on strategic Larak Island.
Nikzad reiterated Iran's position that any ship not associated with the US or Israel can pass after paying a toll. Tehran effectively closed the strait by attacking and threatening ships.
The US has warned shipping companies they could face sanctions for paying Iran in any form, including digital assets, to pass safely. Meanwhile, the US naval blockade since April 13 is depriving Tehran of oil revenue it needs to shore up its ailing economy.
“We think that they've gotten less than $1.3 million in tolls, which is a pittance on their previous daily oil revenues,” US Treasury Secretary Scott Bessent told Fox News on Sunday. He said Iran's oil storage is rapidly filling up and "they're going to have to start shutting in wells, which we think could happen in the next week.”
Iran's currency continues to tumble
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On Sunday, the second day of Iran's working week, the rial weakened further against the US dollar. In Tehran's Ferdowsi Street, the capital's main currency exchange hub, the dollar was trading at 1,840,000 rials.
Analysts say there is a strong possibility the currency will slip further.
The rial was trading at 1.3 million to the dollar in December, a record low at the time, and triggered widespread protests over the worsening economy. Markets in Tehran remain unstable, with prices of some goods rising daily.
According to reports in Iranian media, several factories have not renewed contracts for workers after the Iranian new year in March, and significant numbers have lost their jobs.
Yousef Pezeshkian, the son and adviser of President Masoud Pezeshkian, wrote on Telegram that both the United States and Iran see themselves as the winner of the war and are unwilling to back down.
Nobel committee urges treatment for Iranian laureate
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The Norwegian Nobel Committee on Saturday urged Iran to immediately transfer imprisoned Nobel Peace Prize laureate Narges Mohammadi for treatment by her medical team in Tehran after her health sharply deteriorated.
The committee said it was in touch with Mohammadi's family and lawyer, and that the 2023 laureate's life remains at risk.
The rights lawyer fainted twice in prison on Friday in the northwestern city of Zanjan, her foundation said, and was admitted to a local hospital. Her lawyers have said she is believed to have suffered a heart attack in late March.
