Iraq says Mideast war has cost it $60bn

Iraq's foreign minister said the country has lost around $60 billion during the recent war between the United States and Iran, as disruption in the Strait of Hormuz hit oil exports that fund most state revenue.

Fuad Hussein made the estimate during talks with his Italian counterpart in Rome, according to Iraq's foreign ministry.

Before the conflict, OPEC member Iraq was producing about four million barrels of oil per day and exporting about 3.5 million barrels per day, mostly from the south through the Strait of Hormuz. Iran's blockade of the waterway forced Iraq to halt most production because it lacked storage capacity, leaving only limited exports through Syria by truck and Turkey by pipeline.

Iraq's oil ministry said exports reached 2.6 million barrels per day between September 1 and 21 after a heavy fall in production.

The economic strain has also reduced Iraq's foreign currency reserves by $20 billion and pushed up consumer prices. The Central Bank of Iraq last week devalued the dinar against the dollar for the first time in more than three years.

Iraq relies on foreign currency from oil sales to finance imports, stabilise the dinar and pay public sector employees and retirees. Authorities say they want to raise non-oil revenues from 10 percent to 45 percent by 2037.