Iraq Says War Has Wiped Out $40 Billion in Revenue

A government official said on Wednesday that Iraq had lost more than $40 billion in revenue since the start of the Middle East war, mostly due to a sharp decline in its oil exports.

The conflict and Iran’s blockade of the Strait of Hormuz choked off shipments and prompted production cuts in key oil-producing countries including Iraq, shaking world energy markets.

Before the war, which began with US-Israeli strikes on Iran in late February, Iraq produced around four million barrels per day, and exported an average of 3.5 million bpd, mostly via Hormuz.

But the OPEC founding member was forced to halt production in most of its oil fields as reservoirs filled up, limiting its exports to routes via neighbouring Turkey and Syria.

“For Iraq, due to a 90 percent drop in its oil exports… in addition to the decline in growth rates… the estimated loss was between $40 and $45 billion up to June 2026,” said Muzhar Saleh, financial adviser to Iraq’s prime minister.

Revenue losses could reach $50 billion as the war and the dispute over the Strait of Hormuz continue, Saleh added.

Another government official, speaking on condition of anonymity, confirmed that Iraq’s losses were “nearing $50 billion”, mostly due to the drop in oil exports.

Iraqi Oil Minister Bassem Mohammed Khudair said during a TV interview on Tuesday that his ministry “used to put between $7 to $8 billion a month” into the state’s coffers.

“Today, we do not exceed $1.5 billion,” he added.

Iraq is highly reliant on crude exports, which normally account for about 90 percent of its revenues.

Due to the waterway disruption, Iraq began exporting crude using tanker trucks through Syria after resuming limited oil exports via pipeline to the Turkish port of Ceyhan.