NEW YORK CITY, New York: Seven members of the OPEC+ alliance have agreed to modestly increase oil production in August, extending a series of monthly output hikes as crude prices continue to fall from highs reached during the recent conflict involving Iran.

The Organization of the Petroleum Exporting Countries and its allies said on July 5 that Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman would raise combined production by 188,000 barrels per day next month. The move marks the fifth consecutive monthly increase in output.

"The countries will continue to monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach," the group said in a statement.

Oil prices have eased over the past month following an interim agreement between the United States and Iran aimed at ending hostilities. Under the agreement, Iran committed to allowing ships to pass through the Strait of Hormuz without interference, while the U.S. agreed to lift its blockade of Iranian ports.

The Strait of Hormuz, a key shipping route that normally carries about one-fifth of the world's oil, has since seen an increase in commercial vessel traffic. However, shipping remains below pre-war levels, and tensions persist.

Iran's joint military command warned on Thursday that oil tankers using the strait must follow approved routes or face a "forceful response."

Brent crude, the international benchmark, traded below US$72 a barrel shortly after commodities markets opened on the evening of July 5. That is close to levels seen before the United States and Israel launched strikes on Iran in late February and well below the nearly $120 per barrel reached in March during the conflict.

The war disrupted global energy supplies, with shipping through the Strait of Hormuz severely restricted. Earlier OPEC+ production increases were unable to offset the supply shock because much of the region's crude could not reach global markets.

During the conflict, several major Middle Eastern producers reduced output as exports stalled. According to S&P Global Energy, Gulf oil production is not expected to fully recover until at least the first quarter of 2027.

Energy analysts have warned that although oil prices have retreated, the broader impact on fuel costs and consumer goods could continue well beyond the end of the conflict.