In a statement issued on Thursday, Iraq’s Oil Ministry said the country has repeatedly called for a reassessment of production baselines to better reflect the sustainable production capacities of member states and Iraq’s unique security and economic circumstances. The ministry noted that OPEC has already begun a process to review member countries’ production capacities.

The debate comes amid reports suggesting Iraq could consider leaving OPEC if its production quota is not raised. While Iraqi officials rejected claims that a withdrawal decision has been made, Oil Ministry spokesperson Salim Al-Rikabi stated that Iraq expects a fair increase in its quota and warned that the country may ultimately need to decide whether remaining in the organization serves its interests.

“Iraq has no intention of withdrawing from OPEC and remains committed to its mechanisms,” Al-Rikabi said, while adding that the organization must address Iraq’s production concerns.

Iraq, a founding member of OPEC, relies heavily on oil revenues, which account for nearly 90 percent of government income. The recent regional conflict and disruptions to shipping through the Strait of Hormuz significantly affected exports and reduced production across the country.

Several Iraqi oil fields were also targeted by drone attacks during the conflict, causing further disruptions to operations. Prior to the outbreak of war in February, Iraq produced approximately four million barrels of oil per day and exported around 3.5 million barrels daily, most of which passed through the Strait of Hormuz.

Following a recent agreement between Washington and Tehran that eased regional tensions and reopened maritime routes, Iraqi authorities hope to restore production to pre-war levels within the next two months.

The possibility of Iraq reconsidering its OPEC membership has drawn attention because it would represent another setback for the organization following the departure of the United Arab Emirates earlier this year. Baghdad, however, emphasized that all production-related issues should continue to be addressed through OPEC’s established technical and consensus-based mechanisms.

Iraq maintains that its history of wars, sanctions and recent security challenges justifies a higher production allocation and expects member states to take those factors into account when determining future quotas.

Speaking at a meeting of Gulf Cooperation Council (GCC) foreign ministers in Bahrain, Rubio said that international waterways must remain accessible to all nations and should not be subject to unilateral charges by countries located along strategic maritime routes.

“If we accept that a country can charge vessels for using an international waterway simply because it lies near its territorial waters, the practice could spread throughout the world like a contagion,” Rubio said. He cautioned that such a development could create widespread disruption to global trade and maritime transport.

The remarks come amid ongoing diplomatic efforts between the United States and Iran following a memorandum of understanding signed last week that ended the recent Middle East conflict and reopened the Strait of Hormuz to commercial shipping.

Rubio emphasized that Washington remains committed to reaching a durable peace agreement with Tehran but stressed that any deal must be credible, enforceable and verifiable.

“While we want a deal, we do not want a deal at any price,” he said. “We want a deal that is good, real, verifiable and adhered to.”

During his regional tour, which has included visits to the United Arab Emirates, Kuwait and Bahrain, Rubio also sought to reassure Gulf allies that their security concerns would remain central to US diplomacy.

He pledged that no aspect of a future US-Iran agreement would compromise the security, stability or economic interests of Gulf nations.

The Strait of Hormuz remains one of the world’s most strategically important maritime chokepoints, carrying a significant share of global oil and liquefied natural gas exports. Any restrictions, fees or disruptions in the waterway could have major consequences for international energy markets and global commerce.

Rubio’s comments reflect growing concern among Gulf states and major energy-importing nations about maintaining freedom of navigation through one of the world’s busiest shipping corridors.

The meeting in Gödöllő, near Budapest, brought together Hungarian Prime Minister Péter Magyar, Polish Prime Minister Donald Tusk, Czech Prime Minister Andrej Babiš and Slovak Prime Minister Robert Fico. The gathering marked the first high-level summit of the Visegrad Four, or V4, since disagreements over former Hungarian Prime Minister Viktor Orbán’s Russia-friendly policies strained cooperation among member states.

Magyar, who took office following Hungary’s April parliamentary election, has made rebuilding relations with regional partners a central element of his foreign policy. Speaking after the summit, he declared that the V4 had regained momentum and proposed deeper cooperation on transportation, energy security, agriculture and migration management.

Among the initiatives discussed was a proposal to develop a high-speed railway connecting the capitals of the four member countries, a project Magyar said could strengthen economic integration across Central Europe.

“The V4 is back,” Magyar told reporters after the meeting, describing Central Europe as an increasingly important political and economic center within the European Union.

The Visegrad Group, established in 1991, has traditionally coordinated positions among the four countries on issues ranging from migration and regional development to European Union policy. However, cooperation weakened after Russia’s invasion of Ukraine exposed differences among members over military assistance to Kyiv and relations with Moscow.

Under Orbán, Hungary repeatedly blocked or delayed several European Union initiatives linked to Ukraine, creating tensions with Poland, one of Kyiv’s strongest supporters within the bloc.

Since taking office, Magyar has sought to reverse that approach. His government recently reached an agreement with Ukraine regarding the rights of Hungary’s ethnic minority community in western Ukraine and subsequently removed Budapest’s opposition to the launch of Ukraine’s EU accession process.

Polish Prime Minister Donald Tusk said the V4 could once again become an influential voice in European affairs if member states coordinate positions ahead of European Council meetings.

He said closer consultation among the four countries would allow Central Europe to exert greater influence on policy decisions within the EU.

Czech Prime Minister Andrej Babiš and Slovak Prime Minister Robert Fico, both previously aligned with Orbán on several regional issues, also expressed support for renewing the group’s role. Babiš described the alliance as once again fully operational and argued that the four countries could play an important role in shaping Europe’s future.

Despite renewed cooperation, differences remain over support for Ukraine. Both Babiš and Fico have reduced or opposed military and financial assistance for Kyiv, contrasting with Poland’s more robust backing of Ukraine’s defense efforts.

The summit nonetheless reflected a broader effort by member states to focus on areas of common interest while rebuilding trust within the regional alliance.

Hungary currently holds the rotating presidency of the Visegrad Group and is scheduled to transfer leadership of the bloc to Slovakia at the end of June.

The move expands an emergency arrangement under which Iraq has already been exporting fuel oil through Syria’s port of Baniyas following the effective closure of the Strait of Hormuz, a critical maritime corridor through which the vast majority of Iraqi crude exports traditionally pass.

Iraqi officials said the strategy will remain in place even after maritime traffic through Hormuz normalizes, reflecting a broader government effort to diversify export routes and reduce dependence on a single corridor.

“The Iraqi government and the oil ministry attach the highest importance to diversifying crude export routes, particularly through Syrian territory,” Iraqi Oil Ministry spokesman Saleem Al-Rikabi told Reuters.

Al-Rikabi said state oil marketer SOMO was continuing discussions with Syrian authorities aimed at expanding energy exports through Iraq’s western neighbor.

Iraq typically exports around 3.6 million barrels of crude oil per day, with approximately 3.4 million barrels previously shipped through southern terminals near Basra before the conflict disrupted Gulf trade routes.

The closure of Hormuz forced Baghdad to seek alternative export channels as storage facilities filled and outbound shipments became constrained.

An interim solution introduced in April involved transporting Iraqi fuel oil by tanker truck across Syria to Baniyas for re-export through the Mediterranean.

Syrian officials said preparations are underway to expand the arrangement. Mohammed Al-Ahdab, head of the media office at the Syrian Petroleum Company, said operations at Baniyas were continuing despite expectations that the strait could reopen.

A Syrian Energy Ministry official said two additional unloading areas and supporting facilities would become operational within a week to accommodate Iraqi crude oil and naphtha shipments.

According to Iraqi oil officials, crude exports through Syria could initially reach around 50,000 barrels per day once loading infrastructure is completed. Tanker-truck shipments are expected to begin in early July, while SOMO plans to establish offices in Baniyas to support operations.

The expansion represents a significant opportunity for Syria, which is seeking to rebuild its economy and reconnect with regional markets after years of conflict and international isolation.

Officials said Syria is earning transit-related income from the movement of Iraqi fuel products, although details of the financial arrangements have not been disclosed.

Shipping data cited by industry sources indicate that Iraqi fuel oil exported through Syria has already reached destinations in Africa and Europe, including a tanker that arrived in Alexandria, Egypt, earlier this month.

The overland route faces logistical and security challenges. Roads linking Iraq and Syria have suffered extensive war-related damage, while fuel transport operations have encountered accidents and occasional disruptions from local protests.

At Baniyas, Iraqi fuel oil is being unloaded into storage facilities connected to marine export infrastructure rather than processed domestically, according to a source familiar with the operations.

Syrian authorities are also exploring longer-term solutions, including the rehabilitation of damaged pipeline infrastructure. Officials said the Iraq-Syria pipeline network has the capacity to transport up to 300,000 barrels per day if restored to operational status.

The initiative underscores how the disruption of Hormuz has accelerated efforts by regional producers to develop alternative export routes and strengthen resilience against future geopolitical shocks affecting global energy markets.

Leaders from the Association of Southeast Asian Nations (ASEAN) and Russia concluded their first in-person summit in eight years on Thursday with a commitment to strengthen energy ties, expand trade and investment, and pursue long-term commercial partnerships aimed at diversifying supply sources and reducing exposure to market shocks.

The agreement comes as many Southeast Asian economies grapple with the impact of supply disruptions stemming from the closure of the Strait of Hormuz, a key global energy transit route. The region remains heavily dependent on Middle Eastern crude, with around 60% of Southeast Asia’s crude oil imports originating from the Gulf.

In a joint statement issued after the summit, ASEAN and Russia voiced concern over rising global energy insecurity driven by geopolitical tensions, supply-chain disruptions and market volatility. The two sides also agreed to enhance crisis preparedness, cooperate on energy-transition initiatives and expand engagement in civilian nuclear energy.

Russian President Vladimir Putin, who hosted ASEAN leaders in Kazan, said Moscow was prepared to increase exports of value-added products to Southeast Asian markets, including fertilizers, pharmaceuticals and energy resources.

“Of course, we remain committed to supplying our Asian friends with food products and energy resources, which have been enjoying so much demand,” Putin said at a joint press conference with Philippine President Ferdinand Marcos Jr.

The energy partnership has gained urgency as regional economies face higher fuel costs and supply constraints. The Philippines, for example, imports more than 90% of its crude oil requirements from Gulf producers, leaving it particularly exposed to disruptions in Middle Eastern supply routes.

Indonesian Foreign Minister Sugiono said ASEAN viewed Russia as an important partner in strengthening regional energy resilience and broadening access to alternative sources of supply.

“We seek cooperation that diversifies our sources, strengthens our supply chains, and shields our region from external shocks,” Sugiono told the summit’s plenary session.

Analysts said Russia’s role as a major energy exporter could become increasingly attractive for Southeast Asian governments seeking to mitigate risks associated with geopolitical instability in traditional supply regions.

Chester Calabaza, founding president of the Manila-based International Development and Security Cooperation think tank, said the recent disruption to Middle Eastern energy flows had increased interest in Russian supplies among ASEAN economies pursuing broader energy-security strategies.

Russia’s outreach to ASEAN comes as Moscow seeks to deepen economic engagement with Asia and expand markets for its energy exports, while Southeast Asian governments look to diversify procurement channels amid heightened uncertainty in global energy markets.

The conflict exposed the vulnerability of Middle Eastern energy exporters to disruptions in one of the world’s most important maritime chokepoints. The Strait of Hormuz, through which a significant share of global oil and liquefied natural gas shipments passes, became the focal point of market instability after Iran imposed a blockade that disrupted energy flows across the Gulf.

The closure stranded roughly one-fifth of global oil and LNG supplies, forcing producers to curtail approximately 11 million barrels per day of oil output while disrupting refinery operations and liquefied natural gas facilities throughout the region.

Although Washington and Tehran have since agreed to pursue negotiations toward a permanent peace arrangement, energy producers and policymakers are increasingly treating future disruptions as a recurring strategic risk rather than a remote possibility.

As a result, Gulf governments are prioritizing investments in pipelines, export terminals and overseas assets to reduce dependence on Hormuz and strengthen resilience against future crises.

Saudi Arabia is widely viewed as the region’s strongest example of successful diversification. Long before the recent conflict, state-owned Saudi Aramco developed a 1,200-kilometer pipeline linking oil fields in the Gulf to the Red Sea port of Yanbu. The infrastructure enabled the kingdom to redirect a substantial portion of its exports away from Hormuz during the crisis.

The economic benefits of that strategy became evident as Saudi Arabia experienced a comparatively limited impact from the disruption. According to International Monetary Fund projections cited in the analysis, the Saudi economy is expected to grow by 3.1 percent in 2026, representing a relatively modest downgrade from pre-war forecasts.

The United Arab Emirates also benefited from existing infrastructure. The country continued exporting significant volumes of crude through the Fujairah terminal on the Gulf of Oman, despite disruptions caused by military activity. Abu Dhabi is now accelerating plans to expand export capacity through a second pipeline to Fujairah, with completion targeted for 2027.

Iraq faces a more complicated challenge because much of its production is concentrated in the south and remains heavily dependent on Gulf shipping routes. Iraqi authorities and energy companies are examining possibilities for expanding northern export corridors through Turkiye and Syria, though political instability and security concerns continue to complicate such plans.

The situation is particularly difficult for Qatar and Kuwait, both of which lack substantial alternative export routes outside the Strait of Hormuz.

For Qatar, one of the world’s largest exporters of liquefied natural gas, bypassing Hormuz would likely require cooperation with neighboring states through pipeline networks crossing the United Arab Emirates, Oman or Saudi Arabia. Such projects would involve major financial investments and could increase Doha’s dependence on regional partners, introducing new strategic considerations.

Kuwait faces a similar predicament, with future diversification efforts likely to require deeper energy integration with Saudi Arabia and potentially broader regional infrastructure cooperation.

Beyond pipeline development, Gulf energy producers are increasingly pursuing geographic diversification through overseas investments. National energy companies have expanded portfolios across international oil, gas, refining, storage and renewable energy projects to create revenue streams less exposed to regional geopolitical risks.

Companies including QatarEnergy and Abu Dhabi National Oil Company have already established significant international footprints, and analysts expect such investments to accelerate as governments seek greater protection from future disruptions in Gulf shipping lanes.

The shift reflects a broader reassessment of energy security across the region. Infrastructure once viewed as supplementary is increasingly being treated as essential, while export diversification has moved from a long-term strategic objective to an immediate economic priority.

As Gulf producers recover from the effects of the Iran conflict, decisions on pipelines, transport corridors and overseas investments are expected to influence trade patterns, diplomatic relationships and energy markets well beyond the Middle East, redefining regional economic architecture in the years ahead.

Meeting at their summit in Evian-les-Bains on the shores of Lake Geneva, the leaders issued a joint statement welcoming an interim accord reached between Washington and Tehran that is expected to launch negotiations toward a broader settlement to end the regional conflict.

“We underline the need for the negotiation to address the threats posed by Iran in the region and beyond and ensure that they never obtain a nuclear weapon,” the G7 leaders said.

The agreement, expected to be formally unveiled on Friday, extends a ceasefire first announced in April by a further 60 days to allow negotiations on a permanent settlement. The conflict has reportedly killed more than 7,000 people, with most casualties occurring in Iran and Lebanon.

The summit provided U.S. President Donald Trump an opportunity to brief fellow G7 leaders from Britain, Canada, France, Germany, Italy and Japan on the framework reached with Tehran. While the group has consistently shared concerns regarding Iran’s nuclear activities, many members had previously expressed reservations about the military confrontation that preceded the negotiations.

G7 leaders said they were prepared to support implementation of the accord. A maritime security initiative led by Britain and France is expected to assist in safeguarding shipping routes as the Strait of Hormuz is anticipated to reopen following months of disruption.

Despite the diplomatic breakthrough, significant issues remain unresolved. Iran’s government remains in power, its stockpile of enriched uranium has not yet been transferred or dismantled, and Tehran has not committed to ending support for allied armed groups across the region.

Trump said the agreement guarantees that Iran will not acquire a nuclear weapon, while U.S. officials indicated future negotiations would address the fate of Tehran’s enriched uranium reserves.

One of the most contentious issues remains Lebanon, where hostilities continue despite progress in U.S.-Iran negotiations. Israel launched military operations in Lebanon earlier this year targeting Hezbollah positions, and Israeli forces continue to hold territory in the country’s south.

The G7 statement called for an “immediate robust ceasefire” in Lebanon and urged the disarmament of Hezbollah. Iran has maintained that any lasting regional settlement must include an end to hostilities in Lebanon and an Israeli withdrawal from occupied areas.

Israel has rejected such conditions and insists it retains the right to conduct military operations against security threats. The issue has contributed to visible tensions between Washington and Israeli Prime Minister Benjamin Netanyahu’s government.

Speaking at the summit, Trump criticized Israel’s handling of the conflict, signaling a rare public divergence between the United States and its longtime ally.

A Hezbollah spokesperson told Reuters that the group believed Tehran would not support a permanent settlement if Israeli forces remained in Lebanese territory.

The proposed agreement also carries significant economic implications. According to officials familiar with the framework, it includes provisions for a $300 billion reconstruction fund for Iran, financed by neighboring Gulf states and contingent upon Iranian compliance with the accord’s terms.

A senior U.S. official said Washington would waive sanctions on Iranian oil exports under the arrangement, potentially increasing global crude supply. Energy analysts caution, however, that regional oil and gas production could require months to return to full capacity.

Reflecting concerns over disruptions to maritime trade, G7 leaders committed to accelerating efforts to diversify energy transportation routes and expand strategic reserves to reduce exposure to chokepoints such as the Strait of Hormuz.

Financial markets reacted positively to signs of de-escalation. Brent crude prices fell below $80 per barrel, reaching their lowest levels since the outbreak of the U.S.-Iran conflict, as traders anticipated the restoration of shipping traffic and energy exports.

The G7 also reaffirmed collective support for Ukraine, including its sovereignty and territorial integrity, and agreed to intensify sanctions pressure on Russia.

The unified stance underscored Kyiv’s strengthened diplomatic position following a series of successful drone operations that have complicated Moscow’s military calculus and renewed international discussion about prospects for peace negotiations.

The statement followed what Trump described as a “very good” meeting with Ukrainian President Volodymyr Zelensky and other G7 leaders on Tuesday. Zelensky indicated he could hold further discussions with the U.S. president during the summit as diplomatic efforts surrounding the war continue.

The host of this year’s United Nations climate summit has called for a major acceleration in the electrification of transport, buildings and industry, arguing that a larger share of global energy consumption should come from electricity within the next decade to reduce dependence on fossil fuels.

Turkey’s environment minister Murat Kurum, who will preside over the COP31 climate conference in November alongside Australia, said the world should aim for electricity to provide 35% of final energy demand by 2035. Electricity currently accounts for about 20% of final energy use worldwide.

The proposal was presented as part of discussions among governments preparing priorities for the COP31 summit, which will be held in Antalya, Turkey.Electricity already represents a significant share of global power generation, with around one-third of electricity produced from renewable sources.

However, major energy-consuming sectors including transport, heating and heavy industry remain heavily reliant on fossil fuels.Nearly four-fifths of final energy consumption still comes from fossil fuels, according to current global energy patterns, leaving many economies dependent on coal, oil and gas for everyday activities and industrial production.

Kurum said expanding electrification across the economy would help accelerate the transition toward a lower-carbon energy system.He argued that replacing fossil fuel use with electricity in areas such as vehicles, buildings and manufacturing could reduce exposure to unstable energy markets while supporting climate goals.

The call came as governments gathered in Bonn for climate negotiations under the UN Framework Convention on Climate Change. The meetings are focused on shaping the agenda and priorities for COP31.Australia’s climate change minister Chris Bowen, speaking alongside Kurum and UN climate chief Simon Stiell, said electrification and investment in clean energy had become central themes in early discussions.

Bowen said reducing fossil fuel dependence could help address both climate-related disasters and concerns over energy security.He pointed to examples ranging from industrial electrification in major manufacturing economies to clean cooking initiatives in African communities and renewable energy projects replacing diesel power in Pacific island nations.Renewable energy, he said, had become increasingly competitive as technology costs declined.

The push for electrification comes as countries face renewed concerns over energy prices and supply security. Recent geopolitical tensions, including the Iran war, have contributed to volatility in fossil fuel markets and pushed oil prices above $100 a barrel.Electric vehicles and heat pumps are among the technologies already available to support electrification.

However, adoption rates vary widely between countries due to differences in infrastructure, investment levels and government policy.Supporters of electrification argue that replacing direct fossil fuel use with electricity generated from renewable sources can significantly reduce emissions. However, the climate benefits depend on the carbon intensity of electricity systems and the pace at which renewable capacity expands.

The COP31 discussions are expected to focus on practical measures for increasing clean energy deployment, strengthening energy resilience and supporting countries as they transition away from fossil fuels.Kurum said the proposed 35% electricity target would be a central priority of Turkey’s COP31 presidency.

The summit will bring together governments seeking to balance emissions reductions with economic development, energy security and the need to adapt to increasingly severe climate impacts.

Energy experts have criticised former British prime minister Tony Blair’s call for greater oil and gas extraction, arguing that moving away from the country’s net zero targets would increase long-term economic and climate risks.

The criticism followed an essay by Blair in which he argued that the United Kingdom should use its remaining oil and gas reserves and reconsider its target of achieving net zero greenhouse gas emissions by 2050.

Blair’s position has renewed debate over the future of the UK’s energy policy, particularly as the country faces rising concerns over energy security, extreme weather and the cost of living.Energy specialists said expanding fossil fuel production would not provide a reliable solution to energy challenges and could expose households and businesses to continued volatility in international fuel markets.

Ed Matthew, UK programme director at the climate thinktank E3G, described Blair’s intervention as out of step with current energy and environmental pressures.Matthew said recent heat records and international energy disruptions demonstrated the risks associated with continued dependence on fossil fuels.

He argued that renewable energy offered a more stable alternative because operating costs were low once infrastructure was built.Blair’s comments came as the UK recorded periods of unusually high temperatures and increased solar power generation. Scientists have linked rising temperatures and more frequent heat extremes to climate change driven largely by greenhouse gas emissions from fossil fuels.

Medical professionals warned that extreme heat could increase health risks, particularly for older people and young children. Farmers also reported pressure on livestock and crops, with economic losses expected to exceed hundreds of millions of pounds.The debate has centred on whether the UK should prioritise domestic fossil fuel extraction or accelerate investment in renewable energy and low-carbon technologies.

Supporters of increased oil and gas production argue that domestic resources could improve energy independence and reduce reliance on imported fuels. Critics say fossil fuel markets remain globally connected and that new extraction would not shield consumers from international price changes.

The UK has committed to reaching net zero emissions by 2050, a target that requires substantial reductions in greenhouse gas emissions across electricity generation, transport, industry and buildings.Experts opposing Blair’s proposal said abandoning the target could weaken investment certainty for clean energy industries and slow the development of technologies needed for the transition.

Renewable energy capacity has expanded in recent years, with falling costs making technologies such as solar and wind increasingly competitive. However, the transition also requires improvements in energy storage, grid infrastructure and industrial adaptation.

Blair has previously questioned aspects of current climate policy and argued that energy strategies should focus more heavily on technological development and economic competitiveness.His latest comments have drawn attention because they come during a period of heightened global energy uncertainty.

International conflicts and supply disruptions have contributed to fluctuations in oil and gas prices, reinforcing arguments on both sides of the energy debate.Climate policy experts said the central challenge for governments was balancing energy reliability, affordability and emissions reduction.

They argued that investment decisions made now would influence the UK’s energy system for decades, with consequences for both economic resilience and climate risks.

A senior Trump administration official said ships would be able to pass freely through the strategic waterway under the agreement signed electronically by US President Donald Trump, Vice President JD Vance and Iranian officials.

The deal is part of a 60-day framework aimed at reaching a broader settlement, including on Iran’s nuclear programme, though US officials acknowledged that major issues remain unresolved.

Washington said Iran could eventually access reconstruction funds and sanctions relief, potentially linked to a $300 billion support package, but insisted that disbursements would depend on verified compliance.

US officials said international nuclear inspectors would be allowed back into Iran to oversee the handling of enriched uranium as part of the agreement’s technical phase.

However, Iranian officials signaled a different interpretation, saying the deal would allow the country to impose maritime service fees rather than eliminate charges entirely.

US officials added that no frozen Iranian assets have been released so far, and any future economic measures would be strictly conditional.

Shipping traffic through the Strait of Hormuz, a key global energy route, is expected to gradually return to normal levels over the coming weeks as technical arrangements are implemented.