Iraq Reports $60 Billion Loss From US-Iran War
Foreign Minister Fuad Hussein reports Iraq suffered $60 billion in losses due to a US-Iran conflict and an Iranian blockade of the Strait of Hormuz.
Iraq has suffered an estimated $60 billion in economic losses resulting from the war between the United States and the Islamic Republic of Iran. Fuad Hussein, the Iraqi Foreign Minister, announced the figures during a meeting in Rome on October 15 with Italian Deputy Prime Minister and Foreign Minister Antonio Tajani.
The economic damage was primarily driven by an Iranian blockade of the Strait of Hormuz, which forced Iraq to halt most oil production and rely on limited exports through Syria and Turkey. While September exports recovered to 2.6 million barrels per day, the country faces a severe crisis including a $20 billion drop in foreign currency reserves and rising consumer prices. In response, the Central Bank of Iraq devalued the dinar for the first time in over three years.
Hussein warned that a prolonged conflict threatens to destabilize global energy markets and increase worldwide inflation. He urged the European Union and Italy to support diplomatic initiatives to prevent further escalation. To reduce future vulnerability, the Iraqi government plans to increase non-oil revenues from 10 percent to 45 percent by 2037. Meanwhile, the Iraqi Oil Ministry is working to restore crude production to pre-war levels of 4.2 million to 4.3 million barrels per day.
