Iraq official says war has cost country over $40 billion in revenue

An Iraqi government official said on Wednesday that Iraq had lost more than $40 billion in revenue since the start of the Middle East war, mostly because of a steep fall in oil exports.

The report said the conflict and Iran's blockade of the Strait of Hormuz cut off shipments and led to production cuts in key oil-producing countries including Iraq, affecting world energy markets. Before the war, which the report said began with US-Israeli strikes on Iran in late February, Iraq produced about four million barrels per day and exported an average of 3.5 million barrels per day, mostly through Hormuz.

Iraq then had to stop production in most of its oil fields as reservoirs filled, leaving it to export through routes via neighbouring Turkey and Syria. Muzhar Saleh, financial adviser to Iraq's prime minister, said Iraq had seen a 90 percent drop in oil exports and lower growth rates. He estimated losses at between $40 billion and $45 billion up to June 2026.

Saleh said revenue losses could reach $50 billion if the war and the dispute over the Strait of Hormuz continue. A second government official, who spoke on condition of anonymity, said Iraq's losses were nearing $50 billion, mostly because of the fall in oil exports.

Iraqi Oil Minister Bassem Mohammed Khudair said in a television interview on Tuesday that his ministry previously put between $7 billion and $8 billion a month into state coffers, but now does not exceed $1.5 billion.

The report said Iraq is highly dependent on crude exports, which normally make up about 90 percent of its revenues. Because of the waterway disruption, Iraq began exporting crude by tanker trucks through Syria after resuming limited oil exports through a pipeline to the Turkish port of Ceyhan.