Image for representation purposes only The group of major oil-producing countries called OPEC Plus has announced to increase in oil production by 188,000 barrels per day in July. The development comes as the U.S-Iran war continues to drag on, affecting global oil prices, fears of inflation across the world and countries struggling to meet their energy requirements from alternative sources. This is the fourth time in recent months that the cartel has decided to increase oil output in an effort to regulate oil prices. “The countries will continue to closely monitor and assess market conditions,” the consortium of oil-producing nations said in a statement, and noted “the importance of adopting a cautious approach.” The decision came after a meeting between representatives from OPEC Plus Nations, which include Iraq, Kazakhstan, Kuwait, Algeria, Oman, Russia and Saudi Arabia. Before the advent of the conflict, ships crossing the strategic maritime chokepoint had carried around one-fifth of the world’s oil and gas. The war not only impacted the global economy but also tested political relations in the Persian Gulf as the Emirates, the third biggest oil producer in the cartel, decided to leave OPEC, due to dissatisfaction over the group’s oil production quotas. In May, the cartel announced a 188,000-barrel-per-day increase, and before that, the group had said it would increase oil production quotas by 206,000 barrels a day. Experts suggest that a production increase means nothing until Hormuz reopens and the situation normalises, since the current oil output has nowhere to go, given that ships remain stranded in Hormuz. The longer the Strait of Hormuz remains closed, the more time it would take for oil inventories to get replenished, leading to continued higher prices in global markets, analysts say. The International Energy Agency reported in May that Hormuz closure caused significant oil supply disruptions globally. Before the war, OPEC nations supplied over a quarter of