Iraq has considered leaving OPEC if the oil producer group does not allow Baghdad to significantly increase oil production, Reuters reported, citing sources.
The prospect of Iraq leaving would be a serious blow to the OPEC, which saw the UAE walk away less than two months ago.
The government is grappling with a financial crisis as a result of the war and a significant rise in its OPEC quota should be treated seriously, a senior Iraqi oil ministry official said.
Iraq had considered leaving OPEC, but the current plan was to remain a member and seek a higher quota, he added.
Iraq's quota for July is 4.378 million barrels per day though current output is significantly below this because of the Hormuz disruption.
"Saudi Arabia and other OPEC allies should treat this matter with the utmost seriousness. Failing that, Iraq will be compelled to consider all available options," he said.
Asked if they had discussed an OPEC exit, he said: "It's still premature for this step".
Iraq is the group's second-largest producer after Saudi Arabia and one of its five founding members. OPEC was formed in the Iraqi capital in 1960.
The country relies on oil for the bulk of its income, which has been slashed since the Iran war effectively blocked exports via the Strait of Hormuz.
