Iraq just played the nuclear card in oil diplomacy. On June 25, Iraqi officials signaled they would “consider all options” if their OPEC production quota doesn’t get a significant upward revision, a statement that amounts to a thinly veiled threat to walk away from the cartel entirely.
Iraq is OPEC’s second-largest oil producer, trailing only Saudi Arabia. Iraq needs revenue for reconstruction and faces fiscal pressures that make sitting on idle capacity feel like a luxury it can’t afford.
A familiar playbook, with higher stakes
The UAE formally exited OPEC on May 1, citing its own desire for greater production flexibility. That departure, barely two months old, has clearly emboldened other members to question whether the cartel’s quota system is worth the constraints it imposes.
Salim Al-Rikabi, the Iraqi Oil Ministry spokesman, tried to soften the message by declaring there is currently no intention to withdraw from OPEC. The Iraqi Oil Ministry later went further, denying any rumors about a potential withdrawal by the government or the Prime Minister.
