Iraq's Foreign Minister Warns of Financial Disaster if Iran War Continues

Iraq's Foreign Minister Fuad Hussein stated that if the war with Iran continues until the end of the year, his country will face a financial disaster. Hussein revealed that due to a sharp decline in oil revenues, Baghdad has raised the limit on money printing to cover budget deficits.

Scraper SystemJune 07, 2026, 02:20 PM

Iraq's Foreign Minister Warns of Financial Disaster if Iran War Continues

Iraq's Foreign Minister Fuad Hussein warned that if the war with Iran prolongs, his country will face a financial disaster. Hussein explained that the sharp decline in oil export revenues has forced Baghdad to print new money, increasing the risk of inflation.

In a television program, Hussein stated that the upper limit for money printing was raised from 100 trillion Iraqi dinars to 125 trillion dinars. The minister emphasized that problems cannot be solved by printing money, and on the contrary, it may trigger price increases.

Sharp Decline in Oil Revenues

According to figures shared by Hussein, Iraq exported about 100 million barrels of oil in February, earning around 6 billion dollars. In March, exports dropped to 18.6 million barrels, with revenues falling below 2 billion dollars.

The situation worsened in April. Iraq's oil exports fell below 10 million barrels, while revenues slightly exceeded 1 billion dollars.

The minister stated that if the war continues until the end of the year, it would be a disaster for Iraq. The revenue loss is not due to a collapse in domestic production but mainly because maritime transport in the Gulf has almost completely halted.

Baghdad Seeks New Measures to Cover Deficits

Iraq's economy heavily depends on oil. Approximately 90% of the country's budget expenditures are covered by oil revenues, financing a wide range of areas from public sector salaries to essential public services.

The decline in revenues makes it harder for the government to meet its obligations and increases pressure on public finances. Hussein's remarks indicate that the issue has become not only a financial management problem but also a diplomatic agenda.

Iraq's new Finance Minister Falih al-Sari's call to increase non-oil revenues and strengthen alternative sources has also gained prominence amid this situation. This structural reform, long advocated by experts, has often been postponed during periods of high oil prices.

Alternative Export Routes Under Consideration

Hussein said that due to disruptions in Gulf shipping routes, Iraq is seeking alternative export channels. These options include restarting oil flow from the north through Turkey's Ceyhan Port and establishing a land route via Syria.

The Ceyhan pipeline was halted in March 2023 following an arbitration decision between Baghdad and Ankara and has not been fully reactivated. A potential route through Syria would require significant infrastructure investment and political coordination.

Hussein's statements reveal that although Iraq is not a party to the conflict, it is severely affected by economic fluctuations. While Baghdad advocates for de-escalation, it is simultaneously exploring new ways to limit losses in export revenues.

Iraq's Foreign Minister Warns of Financial Disaster if Iran War Continues