Iraq has lost an estimated $60 billion during the war between the United States and Iran, Foreign Minister Fuad Hussein said, according to a foreign ministry statement carried by the Iraqi News Agency on Friday, October 16.
Hussein made the remarks at a meeting in Rome on Thursday with Antonio Tajani, Italy’s deputy prime minister and minister of foreign affairs and international cooperation, the statement said.
He warned that the continuation of the conflict had worsened the global energy crisis and raised concerns about rising inflation, according to the statement.
Iraq produced about 4 million barrels of oil per day before the conflict and exported about 3.5 million bpd, mostly shipped from the south of the country through the Strait of Hormuz, AFP reported, according to Asharq Al-Awsat.
Iran’s grip on the waterway forced Iraq, which lacks storage capacity, to halt most production. It fell back on limited exports through Syria by truck and through Turkey by pipeline, the report said.
Oil exports, which provide about 90% of Iraq’s revenues, recovered modestly last month to 2.6 million bpd between September 1 and 21, according to the oil ministry.
Iraq’s foreign currency reserves have shrunk by $20 billion and consumer prices have risen sharply, according to the AFP report. The Central Bank of Iraq devalued the dinar against the dollar last week for the first time in more than three years.
Iraq relies heavily on foreign currency from oil sales to finance imports, support the dinar and pay public sector salaries and pensions. The authorities aim to raise non-oil revenues from 10% to 45% by 2037, the report said.
Hussein called on the European Union and its member states, including Italy, to support peace initiatives and encourage the parties to return to negotiations, the ministry said.
The two ministers also discussed security and military cooperation after the end of the international coalition’s mission in Iraq, as well as outstanding financial issues involving the Italian government and Italian companies that date back to the former regime.
