Iraq oil revenue loss hits $45 billion amid Gulf blockade
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Iraq has lost an estimated $40-45 billion in oil revenue through June 2026, according to the prime minister's fiscal adviser Muzhar Salih. The loss follows a 90% drop in crude exports since the start of the Middle East war and the Strait of Hormuz blockade on February 28. Monthly transfers to the treasury have fallen from $7-8 billion to $1.5 billion, Oil Minister Basim Muhammad Khudayir said.
Export Collapse
Iraq's daily crude output, which stood at about 4 million barrels before the conflict, has fallen by 90% as the Strait of Hormuz blockade cut off its main export route. The country used to ship roughly 3.5 million barrels per day through the strait. Adviser Muzhar Salih warned that total losses could reach $50 billion if the blockade persists.
Fiscal Strain
The revenue drop has directly hit state finances. Oil Minister Basim Muhammad Khudayir said the ministry's monthly contribution to the treasury fell from $7-8 billion before the war to just $1.5 billion now. Iraq's economy remains heavily dependent on oil revenues, amplifying the impact of the blockade.
What's Next
The duration of the Strait of Hormuz blockade will determine Iraq's fiscal outlook. It remains unclear when exports can resume or how the government will cover the widening budget gap.
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Iraq oil revenue loss hits $45 billion amid Gulf blockade
