Iraq loses $60 billion since outbreak of US-Iran conflict

The Gambia-flagged tanker vessel Bili is pictured anchored in the Strait of Hormuz off Bandar Abbas in southern Iran on May2, 2026. Photo: Amirhossein Khorgooei/ISNA/AFP via Getty Images Baghdad (IraqiNews.com) – Iraqi Prime Minister Ali al-Zaidi revealed that Iraq—the world’s third-largest oil supplier—has lost approximately 60 percent of its monthly export revenues due to the ongoing conflict between Washington and Tehran, which has disrupted maritime shipping through the Strait of Hormuz. In an interview with The New York Times, al-Zaidi explained that Iraq’s total losses since the outbreak of the conflict have reached around $60 billion. Although Iraq is considered a regional partner of Iran, Tehran has not permitted Iraqi oil tankers to pass through the Strait of Hormuz, according to al-Zaidi. “We held extensive discussions. Iran’s decision is firm. Their goal is to drive up global oil prices. It is not a matter of how close we are to them; ultimately, they want to exert pressure,” al-Zaidi said. Since he assumed office, al-Zaidi has put forward proposals to build pipelines that bypass the Strait of Hormuz. Earlier this year, Iraq agreed to a one-year deal to increase oil exports to Turkey via an existing Iraqi pipeline and is now seeking to expand the line’s capacity. During his recent visits to France and Germany, al-Zaidi suggested plans to build pipelines through Turkey that would allow Iraqi oil to be transported directly to Europe. The attempt comes as Iraq is under increasing pressure from Washington—its main security and economic partner—to restrain Iran-aligned groups that have acquired enormous military power and political influence. At the same time, Iran is seeking to deepen its influence in the country and expand its use of these militias in its conflict with Washington. Disarming militias has presented a challenge for previous Iraqi administrations. Iran-backed factions have become established in the past few years, creating parties deeply connected with the political and economic institutions, making it difficult to control them.