The Organisation of the Petroleum Exporting Countries (OPEC) has said the disruption of Strait of Hormuz amid the ongoing U.S.-Iran war increases market volatility and weakens efforts to support crude oil market stability.

OPEC stated this in a statement issued after the 67th meeting of its Joint Ministerial Monitoring Committee composed of Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Nigeria, Algeria and Venezuela.

According to the committee, the JMMC reviewed current market conditions and emphasised the essential role of the Declaration of Cooperation (DoC) in supporting the stability of global energy markets. 

The statement noted that the committee highlighted the critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy.

The committee also expressed concern regarding attacks on energy infrastructure.

It noted that restoring damaged energy assets to full capacity was both costly and tedious, thereby affecting overall supply availability.

It added, “Accordingly, the Committee stressed that any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility and weaken the collective efforts under the DoC to support market stability for the benefit of producers, consumers, and the global economy.”

The committee reaffirmed its commitment to monitor adherence to the production adjustments decided upon at the 38th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on December 5, 2024, and the additional voluntary production adjustments announced by some participating OPEC and non-OPEC countries as agreed upon in the 52nd JMMC held on February 1, 2024.

“The JMMC will continue to closely monitor market conditions and retains the authority to convene additional meetings or request an OPEC and non-OPEC Ministerial Meeting, as established at the 38th ONOMM held on 5 December 2024,” the statement added.

The development came amid U.S.-Iran war leading to the closure of Strait of Hormuz which formerly carried about 20 per cent of global oil and gas exports.

Meanwhile, Saudi Arabia recently unveiled a proposal to establish a multinational maritime defence alliance to protect international shipping routes and global trade.

The country said 14 countries, including Nigeria, declared support for the alliance as the war continues to take a toll on the global economy.