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

Baghdad, Iraq - The Middle East conflict has dealt a severe economic blow to Iraq, with the country losing approximately US$60 billion, according to foreign minister Fuad Hussein. Before the war, Iraq was producing around four million barrels of oil daily, exporting about 3.5 million barrels per day, primarily through the Strait of Hormuz. However, Iran's blockade of this vital waterway forced Iraq to halt most production and resort to limited exports via truck and pipeline to Syria and Turkey.

Iraq's oil exports, which account for about 90% of the nation's revenue, have seen a modest recovery in recent months, reaching 2.6 million barrels per day between September 1 and 21, as reported by the Iraqi oil ministry. Despite this partial recovery, Iraq's foreign currency reserves have plummeted by 20 billion dollars, and consumer prices have surged, plunging the country into an economic crisis.

In an attempt to mitigate the financial fallout, the Central Bank of Iraq devalued the dinar against the dollar for the first time in over three years. Iraq's economy heavily relies on foreign currency generated by oil sales to finance imports, stabilize the currency, and pay salaries for public sector employees and retirees.

The government is actively seeking to diversify Iraq's economic resources and increase non-oil revenues from the current 10% to 45% by 2037, as outlined by the authorities.