Iraq has signaled it may leave the Organization of the Petroleum Exporting Countries (OPEC) if the cartel does not grant it a higher production quota.
The threat, reported by Bloomberg, underscores deepening fractures within the group as member states clash over output limits and market share.
The development adds to mounting pressure on OPEC's cohesion.
The United Arab Emirates recently announced its decision to exit the organization, a move that coincided with heightened geopolitical tensions involving Iran.
With two major producers challenging the cartel's authority, the group's ability to enforce production cuts and stabilize global oil supplies is increasingly in doubt.
For markets, the risk lies in potential supply volatility.