OPEC+ Loses Oil Market Sway Amid Iran War Disruptions

The OPEC+ alliance, once dominant in shaping oil markets, has lost sway six months into the Iran war.

The conflict has shut a major export route for Middle Eastern oil and damaged energy infrastructure in several OPEC countries, eroding the group's market share and its ability to influence prices.

OPEC+, which accounted for about 40% of global oil output in July, according to Reuters calculations, is now struggling to raise or cut supply due to the effective shutdown of the Strait of Hormuz, a key export route for top OPEC producer Saudi Arabia and other members such as Iraq and Kuwait.

The group's inability to move markets with its statements and policy decisions has been stark. Its announcements have had little effect on oil prices, apart from in July during a brief U.S.-Iran ceasefire that raised hopes Hormuz would reopen.