Iraq faces $60 billion oil revenue loss amid regional conflict

Iraq is facing severe economic instability due to the ongoing conflict involving the United States, Israel, and Iran. Prime Minister Ali al-Zaidi reported that the country has lost approximately $60 billion in oil revenues because it was unable to export roughly 90 percent of its oil through traditional Gulf routes for a period of time.

The disruption of trade through the Strait of Hormuz has significantly impacted Iraq’s economy, which relies on oil for more than 90 percent of its federal budget. The blockage of these shipping routes has strained supply chains, increased transport costs, and reduced the availability of imported goods.

Local businesses are feeling the impact of these shortages. In Baghdad, some retailers report a significant drop in the availability of imported products, forcing a shift toward local goods that may not meet previous quality standards.