Oil
Iraq reports $60bn loss as Middle East conflict hits oil flows
Iraqi foreign minister Fuad Hussein states the country suffered massive financial losses after conflict disrupted crucial energy export routes.
Key points
- Iraq has incurred approximately $60 billion in losses during the ongoing Middle East conflict.
- Iran's blockade of the Strait of Hormuz forced Baghdad to halt much of its oil production.
- The Central Bank of Iraq recently devalued the dinar to manage shrinking foreign reserves.
What happened
According to Punch reporting, Iraq has incurred losses estimated at around $60 billion during the regional conflict involving the United States and Iran. Foreign Minister Fuad Hussein announced the figures in Rome while meeting his Italian counterpart, noting that a blockade of the Strait of Hormuz by Iran severely restricted global energy shipments.
Before the hostilities, the OPEC nation produced roughly four million barrels per day, with about 3.5 million barrels per day destined for export mainly via the southern waterway. Limited storage capacity forced authorities to suspend most output, relying instead on restricted export channels through Syria and Turkey. Oil shipments experienced a partial recovery between September 1 and 21, reaching 2.6 million barrels daily.
Why it matters
Petroleum sales account for roughly 90 percent of state revenues in Iraq, making the export disruption a severe economic blow. Punch reported that foreign currency reserves fell by $20 billion alongside surging consumer prices, pushing the nation into a broader economic crisis.
To mitigate the fallout, the Central Bank of Iraq adjusted the value of the dinar against the dollar for the initial time in over three years. The country depends heavily on hydrocarbon revenues to finance public sector salaries, support imports, and maintain currency stability.
What comes next
Authorities are pursuing long-term strategies to reduce vulnerability to commodity price swings. According to official plans cited by Punch, Baghdad aims to expand non-oil income streams significantly over the coming decade.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
85.9% of Nigeria’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
