Iraq is considering all options, including a potential exit from OPEC, if the cartel does not significantly increase its production quota, according to government sources cited by Handelsblatt.
The threat marks a sharp escalation in Baghdad’s long-standing dispute with the oil alliance over output restrictions that it argues undermine its economic recovery.
The development injects new uncertainty into global oil markets, which have recently been buoyed by signs of diplomatic progress in the region.
Crude prices retreated earlier this week following reports that the United States is preparing to partially lift targeted sanctions on Iran’s oil exports.
Additionally, optimism regarding a potential peace deal between Washington and Tehran had weighed on prices in early trade on Monday.
Iraq’s stance complicates the narrative of easing tensions.