Iraq says Strait of Hormuz disruption cost $60 billion in oil losses
Iraq’s foreign minister said the country lost about $60 billion during the US-Iran war after disruption in the Strait of Hormuz forced most southern oil production to stop. Exports later partly recovered, but reserves fell and consumer prices rose sharply, according to the report.
By DoomRadar · Published on DoomRadar . Updated .
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How the effects could reach youConditional effects
Based on one source with available article excerpts. Source-linked claims are not independent confirmation.
Event date: During the recent US-Iran war; the report does not provide a specific start date for the disruption. [1]
What happened
Iraqi Foreign Minister Fuad Hussein said Iraq suffered losses of about $60 billion during the recent war between the United States and Iran. He made the estimate while speaking to his Italian counterpart in Rome, according to AFP. [1]
References for this detail (1)
- Iraq Has Lost $60 Billion Due to Middle East War and Collapse in Oil Exportsbgnes.com · Article published: Oct 16, 2026, 12:13 PM UTC
The disruption affected Iraq because most of its southern oil shipments normally passed through the Strait of Hormuz, a major maritime route for energy supplies. Iraq produced about 4 million barrels per day and exported roughly 3.5 million before the conflict, according to the report. [1]
References for this detail (1)
- Iraq Has Lost $60 Billion Due to Middle East War and Collapse in Oil Exportsbgnes.com · Article published: Oct 16, 2026, 12:13 PM UTC
With the route blocked, Iraq’s limited storage capacity forced it to suspend most production. The country relied on smaller export flows through Syria and Turkey, using trucks and pipelines, respectively. [1]
References for this detail (1)
- Iraq Has Lost $60 Billion Due to Middle East War and Collapse in Oil Exportsbgnes.com · Article published: Oct 16, 2026, 12:13 PM UTC
Iraqi oil exports later showed some recovery: the Oil Ministry reported exports of 2.6 million barrels per day from September 1 to 21. The report does not establish that normal export capacity had returned. [1]
References for this detail (1)
- Iraq Has Lost $60 Billion Due to Middle East War and Collapse in Oil Exportsbgnes.com · Article published: Oct 16, 2026, 12:13 PM UTC
The reported economic effects extended beyond lost oil sales. Iraq’s foreign-exchange reserves fell by $20 billion, while consumer prices rose sharply, according to the account. [1]
References for this detail (1)
- Iraq Has Lost $60 Billion Due to Middle East War and Collapse in Oil Exportsbgnes.com · Article published: Oct 16, 2026, 12:13 PM UTC
Context from the sources
Iraq’s oil exports account for around 90% of government revenue, making a disruption to the southern maritime route especially consequential for public finances. [1]
Explore the sources and reporting timeline
1 source links · 1 domains
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Source timeline
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Questions answered by the reporting
Why was Iraq’s oil production affected by the Strait of Hormuz disruption?
Most Iraqi oil shipments from the south passed through the strait, while Iraq had limited storage capacity and only restricted export routes through Syria and Turkey. [1]
Did Iraqi exports remain completely halted?
No. The Oil Ministry said exports reached 2.6 million barrels per day between September 1 and 21 after showing some recovery the previous month. [1]
What this could mean for you
Iraqi oil production and government revenue could remain below normal.
If the Strait of Hormuz remains blocked or restricted, southern exports cannot move through Iraq’s main maritime outlet and limited storage could again force production cuts.
Reported basis: [1] · The possible effect is interpretation.
Depends on: Continued disruption of the strait and no adequate replacement export capacity.
Consumers in Iraq could face continued pressure on prices.
Lower oil revenue and reduced foreign-exchange reserves can constrain the country’s ability to finance imports, while the report already says consumer prices rose sharply.
Reported basis: [1] · The possible effect is interpretation.
Depends on: The reserve decline and export disruption persist.
Possible consequences, not a forecast. Their relevance depends on your location and the conditions above.
For your country
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What changes the outlook
Risk increases if…
A continued blockage or restriction of the Strait of Hormuz would again threaten Iraq’s southern export flows.
A failure of alternative routes through Syria or Turkey to handle more volume would leave Iraq dependent on limited shipping access.
Pressure eases if…
Sustained restoration of Strait of Hormuz access would allow more southern oil shipments to resume.
Further recovery of exports above the reported September 1–21 level would reduce pressure on production and public revenue.
Still unclear
The report does not specify how long the Strait of Hormuz disruption lasted or whether normal access was restored.
The components of Iraq’s estimated $60 billion loss are not itemized.
Market implications
Market impact
Sources (1)
References for the reported details. Separate links do not necessarily mean independent confirmation.
Available excerpt
Following the sharp decline in production, Iraqi oil exports, which account for around 90% of the country's revenue, showed some recovery last month. Iraq has…A short excerpt from our source record; open the original for the full article.
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