Iraq says it lost US$60bil as Mideast war hits oil exports

BAGHDAD: Iraq's foreign minister has reported that the Middle East war has resulted in a loss of around US$60 billion for the country's oil exports, as Iran has imposed a blockade on a crucial waterway. Prior to the conflict, Iraq was producing and exporting approximately four million barrels of oil per day, primarily through the Strait of Hormuz.

However, the Iranian blockade has forced Iraq to halt production and rely on limited exports via Syria and Turkey. Despite this, Iraq's oil exports have since recovered slightly, reaching 2.6 million barrels per day in the first two weeks of September. Nonetheless, this has led to a 20 billion dollar decline in foreign currency reserves and a surge in consumer prices, plunging Iraq into an economic crisis.

In response, the Central Bank of Iraq has devalued the dinar against the dollar for the first time in over three years. Iraq, heavily reliant on oil revenues to finance imports, stabilize the currency, and pay salaries, is now seeking to diversify its economy, aiming to increase non-oil revenues from 10% to 45% by 2037.