BAGHDAD, IRAQ — Iraq has lost around $60 billion during the Middle East war. The losses followed Iran’s blockade of a key waterway. The blockade hit oil exports, Iraq’s foreign minister has said.
The minister spoke on Thursday during a press conference in Baghdad. He said the blockade had crippled Iraq’s economy. He called for urgent international intervention.
The Blockade
Iran blockaded the Strait of Hormuz earlier this year. The strait is a critical route for global oil shipments. About 20 per cent of the world’s oil passes through it.
Iraq relies heavily on oil exports. Oil accounts for over 90 per cent of its revenue. The blockade prevented Iraq from exporting its crude. This led to massive losses.
Economic Impact
The $60 billion loss is a huge blow to Iraq. The country was already struggling with economic challenges. These include high unemployment and poor infrastructure.
The loss has affected government revenues. It has also affected the value of the Iraqi dinar. Prices of basic goods have risen. Many Iraqis are struggling to make ends meet.
“We have lost $60 billion. This is a disaster for our country. We need help,” the foreign minister said.
Regional Conflict
The blockade is part of the wider Middle East conflict. The war has disrupted oil supplies across the region. It has also caused instability in global energy markets.
Oil prices have fluctuated sharply. They rose above $90 per barrel at the height of the crisis. This has affected consumers worldwide.
What This Means
The conflict is having a devastating impact on Iraq. The country depends on oil exports. Any disruption to those exports is catastrophic.
Iraq needs international support to recover. It also needs to diversify its economy. Relying solely on oil is risky.
What Happens Next
Iraq is seeking compensation from Iran. It is also calling for the blockade to be lifted. International efforts to end the conflict are ongoing.
For now, Iraq is counting its losses. The war has set the country back years. The road to recovery will be long.
