Iraq has incurred an estimated loss of around $60 billion due to the ongoing conflict between the United States and Iran, according to Iraqi Foreign Minister Fuad Hussein. Speaking during a meeting with his Italian counterpart in Rome, Hussein attributed part of the country's economic difficulties to Iran’s blockade of a key waterway vital for global energy shipments.

The conflict has significantly disrupted Iraq's oil sector, which accounts for roughly 90 percent of the nation's revenue. Oil exports declined sharply following production setbacks but showed a modest recovery in early September, reaching approximately 2.6 million barrels per day between September 1 and 21, according to the Iraqi oil ministry.

Despite this partial rebound in oil exports, Iraq’s economy has faced mounting pressures. Foreign currency reserves have decreased by about $20 billion, while domestic consumer prices have surged, contributing to an intensifying economic crisis. In response to these challenges, the Central Bank of Iraq took the rare step of devaluing the Iraqi dinar against the U.S. dollar last week, marking the currency’s first adjustment in over three years.

The economic fallout underscores the broader regional impact of hostilities between the U.S. and Iran, which have disrupted trade routes and energy flows critical not only to Iraq but to the global market. The blockade imposed by Iran on strategic waterways has been identified as a key factor affecting Iraq’s ability to maintain consistent oil exports.

Officials in Baghdad continue to seek ways to stabilize the economy amid ongoing geopolitical tensions. However, the combination of lost revenues, dwindling reserves, and rising inflation presents a complex challenge for Iraq’s policymakers, especially as the nation depends heavily on its energy sector to sustain public finances.