Rising geopolitical tensions, particularly the conflict in the Middle East, are driving oil prices higher, with fears of supply disruptions primarily due to Iran's potential involvement in the violence. Despite this, OPEC+ holds significant spare capacity of over 5 million barrels per day (b/d), which could stabilize prices if needed. However, any conflict affecting the Strait of Hormuz, a crucial oil shipping route, could lead to severe price spikes. Analysts indicate that OPEC could compensate for a complete loss of Iranian oil supplies if Israel were to strike Iranian facilities, yet challenges could arise if Iran retaliates against Gulf states. OPEC+ has been cutting production to support prices amidst weak demand, and recent reports show that Iranian oil exports have surged despite U.S. sanctions. The organization remains hopeful for non-escalation in the ongoing geopolitical conflicts.