Oil prices fell after Israel and Iran agreed to halt strikes against each other, easing fears of a broader regional conflict that had briefly driven crude higher.
The Iran war is pushing countries to prioritize domestic energy in order to protect themselves from volatile oil and natural gas markets.
The Yemeni militia group, which is backed by Iran, said it would impose a partial blockade in the waterway, a move that would further strangle supply routes and aggravate the conflict in the Mideast.
The facility makes materials that Iran says are for civilian uses, but that Israel argues are also deployed in military applications.
As the war in Iran persists, signs point to a prolonged period of higher prices and slower growth rather than a quick shock.
The cartel’s move to increase output by 188,000 barrels per day is largely symbolic, with vast amounts of the world’s oil stranded by the effective shutdown of the Strait of Hormuz.
Iranian drones struck Kuwait’s main international airport and the United States and Iran exchanged strikes.
The Organization for Economic Cooperation and Development, in a report, said the Middle East war’s consequences “are likely to be felt for some time.”
A statement from Prime Minister Benjamin Netanyahu of Israel did not mention a new cease-fire, but the Lebanese government said one was taking shape.
Some analysts said the main international oil price, which was up 6 percent on Monday, could climb much higher in the coming weeks if the Strait of Hormuz doesn’t reopen.