Iraq has urged OPEC to increase its oil production quota considering the country’s history of conflicts and the recent regional war that have damaged its industry, the Oil Ministry said on Thursday (June 25, 2026).

Like other oil producers, Iraq, a founding member of OPEC, was greatly affected by the West Asian war, as it is hugely dependent on oil exports, which make up about 90% of its budget revenues.

Iraq’s Oil Ministry said that the country “has consistently emphasised the importance of reassessing production baselines to ensure they are aligned with the sustainable production capacities of member countries,” and in respect of “Iraq’s unique security and economic circumstances”.

OPEC has “responded by launching a process to reassess” its members states’ capacities, the Ministry said.

Amid reports of a possible Iraqi exit from OPEC, Oil Ministry spokesperson Salim al-Rikabi told AFP that Iraq “has no intention of withdrawing from the organisation and remains committed to its mechanisms”.

He added that the cartel “has to raise Iraq’s production quota. Otherwise, a decision will have to be made about whether to stay or leave the organisation”.

Iraq has proceeded “to increase its production in line with its capacities and needs,” he said.

But the Ministry said that “reports suggesting that Iraq is considering ending its membership in OPEC do not reflect the official position” of the government.

An Iraqi exit would further weaken OPEC after the UAE pulled out of the cartel in May citing “national interests” and a broader plan to future-proof its economy.

Iraq’s Ministry added that “any issues related to production baselines or sustainable production capacity are addressed through the established technical and consensus-based mechanisms” within OPEC.

It noted a “high level of understanding” among OPEC members regarding Iraq’s situation, given decades of wars, sanctions, and recent attacks that have damaged the sector during the West Asian War.

All of these challenges will be considered to “ensure that Iraqi oil production reaches a fair level”.

The West Asian war and Iran’s blockade of the Strait of Hormuz choked off shipments and prompted production cuts in key oil-producing countries including Iraq, shaking world energy markets.

During the conflict, several oil fields were struck by drones mostly launched by pro-Iran armed groups.

Before the war erupted on February 28, Iraq produced around four million barrels per day, and exported an average of 3.5 million bpd, mostly via Hormuz.

After a recent deal between Washington and Tehran to end the fighting, Iraq now hopes to return within two months to its previous production levels.

Oil ⁠prices were up more than $2 a barrel on Monday (June 8, 2026) after Israel on Sunday (June 7) launched renewed strikes on Lebanon despite a truce between the two countries, eroding hopes ‌for an end to the wider war and a restart to crude flows through the Strait of Hormuz.

U.S. crude ‌futures were up $2.10, or 2.32%, at $92.64 per barrel as of 0013 ‌GMT, ⁠while Brent crude futures rose $2.33, or 2.5%, to $95.42 ⁠a barrel.

That erased most of the losses from Friday (June 5), when prices had fallen on mounting hopes of a de-escalation in the U.S.-Iran conflict, which started with U.S. and ​Israel strikes on Iran in February.

The ‌latest strikes appeared to present yet another barrier to a U.S.-Iran peace deal and the reopening of the Strait of Hormuz, a key conduit for global oil and gas flows. Iran has made ‌a ceasefire with Lebanon a condition for a peace deal ​with Washington.

Iran retaliated for the Beirut strikes on its ally Hezbollah by launching missiles at Israel. U.S. President Donald ⁠Trump said he would tell Israeli Prime Minister Benjamin Netanyahu not to retaliate at Iran.

Israel had invaded Lebanon in March after Iran-backed Hezbollah fired rockets ‌and drones across the border. Lebanon and Israel said on June 3 that they had agreed to a ceasefire following negotiations in Washington.

The two countries had previously agreed to a cessation of hostilities in April but violence continued.

The wider war has been on pause since the U.S. and Israel halted their attacks on Iran in early ‌April, but with Tehran continuing to block most shipping through the Strait of Hormuz.

Amid ​the resulting supply crisis, OPEC+ on Sunday (June 7) agreed its fourth increase in oil output in four months. But analysts ⁠said the decision would have little impact since most OPEC+ members could not ⁠meet their output targets because of the Hormuz closure or, in the case of Russia, infrastructure attacks that have eroded its ‌production capacity.

“In the current market, the physical impact of such a decision would be close to zero,” Rystad Energy head of geopolitical ​analysis Jorge Leon said in a note.