Strait of Hormuz reopens after Iran war while OPEC faces Iraq quota clash and UAE exit

The Strait of Hormuz has started to reopen after Iran's closure and America's subsequent blockade during the Iran war, Cnn reported. The move follows months when the strait locked in a fifth of the world's oil supply. Iran, Iraq and Kuwait shut in their crude production during the closure.

Iraq's output fell 75 percent to just over 1 million barrels a day in April and May from more than 4.5 million barrels a day in January and February. Iraq's oil minister told Bloomberg that the country would have to decide whether to remain in OPEC if production targets do not increase sharply.

Iraq wants permission to produce 5 million barrels a day immediately after the war and aims for 7 million barrels a day longer term.

OPEC+ agreed this weekend to raise daily output by 188,000 barrels, the fifth such increase since March. Saudi Arabia's production fell by less than 40 percent during the war while Iraq's and Kuwait's output dropped more sharply. Global emergency and commercial petroleum stockpiles fell by 1.4 billion barrels since the war began in March.

Around 90 million barrels of oil are now starting to move through the strait, according to Kpler. Kieran Tompkins, senior climate and commodities economist at Capital Economics, said $60 oil is possible next year and prices could reach $50 a barrel in 2028.

Vikas Dwivedi, global oil and gas strategist at Macquarie Group, said Saudi Arabia could raise production caps enough to push prices into the $40 range.