Iraq has intensified its standoff with OPEC by demanding a significant increase in its oil production quota, according to reports from Baghdad.
The move follows earlier indications that the country was considering all options, including a potential withdrawal from the cartel, if its demands were not met.
This development marks a sharp escalation in the ongoing dispute over output limits, raising questions about the stability of OPEC's production framework.
The dispute adds to existing geopolitical pressures on global oil supply routes.
With Iraq as the second-largest exporter in the group, any disruption to its output or a potential exit from the cartel could tighten global supplies and support higher prices.
Traders are closely monitoring the situation for signs of further escalation, which could impact shipping routes and freight rates in the region.