Iraq's Basrah Heavy crude benchmark has suffered a severe repricing, plunging more than 25% to trade at $45.37 per barrel.
The sharp decline occurred even as major global oil futures moved higher, highlighting a growing divergence between Iraq's export grades and the broader market.
The collapse in Basrah Heavy prices underscores the intensifying friction between Baghdad and OPEC over production quotas.
With Iraq threatening to exit the cartel if its output caps are not relaxed, traders are increasingly discounting the reliability of Iraqi supply commitments.
This structural risk is now being priced directly into the differential for Basrah grades, separating them from the rally seen in Brent and WTI.
This move follows a volatile week for Iraqi crude.