Iraq has escalated its long-running dispute with OPEC by demanding a significant increase in its oil production quota, with Baghdad signaling it is prepared to leave the cartel if its demands are not met.
The move marks a sharp intensification of tensions within the producer group, coming shortly after the United Arab Emirates announced its exit from the organization.
While earlier reports suggested Iraq was weighing all options, including a potential departure, officials in Baghdad have now made the threat explicit, framing the quota hike as a non-negotiable condition for continued membership.
The standoff introduces fresh volatility into global oil supply dynamics.
With the UAE already out and Iraq threatening to follow, the structural integrity of OPEC’s output management system is under severe strain.
Markets are pricing in the risk of uncoordinated supply increases should Iraq break away, which could undermine the cartel’s ability to stabilize prices.