Iraq to increase oil production starting in August 2025, as the country exits a binding OPEC+ agreement. Government officials confirmed that Iraq will raise oil output and export up to four million barrels by the end of the year.
Mazhar Mohammed Saleh, the financial and economic advisor to Prime Minister Mohammed Shia Al-Sudani, explained the background. In 2023, Iraq signed a deal with OPEC Plus to cap oil production. That agreement helped stabilize the global oil market, but it limited Iraq’s production growth. Now, with the deal ending in August, Iraq will regain full control of its oil policy.
“Although OPEC+ agreed in June to raise production, Iraq had to wait,” Saleh stated. “The 2023 agreement prevented us from increasing our output directly. Now, that restriction will no longer apply.”
Therefore, Iraq to increase oil production becomes a strategic shift for national energy policy. Saleh confirmed that Iraq will aim to export around four million barrels of oil by December. As a result, this move will help the country counteract declining oil prices.
The government expects higher exports to generate more revenue. Increased income, in turn, will strengthen fiscal stability. “By raising production now, we can protect our economy from global price shocks,” Saleh added.
Since 2022, OPEC+ has managed supply reductions to maintain stable prices. However, global demand has risen sharply. In response, the group started increasing output step by step in 2025.
At the same time, world leaders have pushed for greater supply. For example, U.S. President Donald Trump called on OPEC+ to put more oil on the market. He aimed to control rising gasoline prices and ease pressure on consumers.
Iraq’s decision now reflects both internal priorities and international trends. The country sees an opportunity to strengthen its economy while also supporting market demand.
In conclusion, Iraq to increase oil production marks a major development. With greater output and export plans underway, Iraq is positioning itself for stronger economic performance and global market integration.
