Iraq says war with Iran has cut oil revenue by $40bn since conflict began
Iraq's oil ministry states the war with Iran has cost the country $40 billion as shipping disruptions and rerouted exports hit the nation's energy sector.
Iraq says war with Iran has cut oil revenue by $40bn since conflict began. The loss of funds, which an Iraqi government official confirmed on Wednesday, 22 July 2026, stems from a sharp decline in exports caused by the ongoing regional conflict. Before the war, which commenced with U.S.-Israeli strikes on 28 February 2026, Iraq produced roughly 4 million barrels per day and exported about 3.5 million barrels per day, largely via the Strait of Hormuz.
Bassem Mohammed Khudair, the Iraqi Oil Minister, stated in a television interview that his ministry previously contributed between $7 billion and $8 billion monthly to the state treasury. That flow has been restricted as reservoirs filled and exports were redirected toward overland routes through Turkey and Syria.
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Global energy markets remain sensitive to the disruption. Brent crude rose to more than $95 a barrel on Wednesday, reflecting a $20 increase since hostilities resumed on 7 July. Analysts monitoring the situation report that the expansion of the conflict to the Red Sea, where Houthi rebels have threatened Saudi shipping, has compounded supply concerns.
On Wednesday, U.S. President Donald Trump escalated his rhetoric regarding the security of the Strait of Hormuz. Writing on his Truth Social platform, Trump stated:
"From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran."
This warning followed the 11th consecutive night of U.S. Strikes on Iranian targets. U.S. Central Command reported that recent operations hit aircraft hangars, drone storage facilities, and logistics infrastructure to diminish Tehran’s capability to target commercial vessels. U.S. Officials confirmed that over the past three months, Iran has launched more than 30 attacks on commercial ships transiting the strait.
The situation in Washington and the region remains tense. President Trump traveled to Dover Air Force Base on Wednesday for the dignified transfer of the remains of four U.S. Service members killed in recent Iranian strikes on bases in Jordan and Iraq. The Pentagon confirmed that the death toll for U.S. Personnel in the conflict has reached 18.
Iran’s response to the ongoing U.S. Campaign has been defiant. A spokesperson for the Iranian parliament's National Security Commission described the U.S. Position as a "quagmire." Meanwhile, the Iranian Revolutionary Guard pledged to continue their campaign against the U.S., warning through the Tasnim news agency that any strike on Iranian bridges or power plants would result in retaliatory attacks on regional infrastructure and energy facilities in which the United States holds interests.
Political divisions persist regarding the trajectory of the war. Republican Senator Rand Paul criticized the conflict on Capitol Hill on Tuesday, stating, "The Iran war has not been a success. I've been opposed to the Iran war from the beginning. I think by any objective measure, we're worse off than we were before the war." Paul advocated for adherence to the War Powers Act, asserting that the Constitution requires Congressional approval for military action.
Regional volatility also continues. Jordan’s military intercepted four Iranian missiles over the city of Aqaba on Wednesday, while two others fell in uninhabited areas. Iran’s Health Ministry reported that the recent flare-up has resulted in 53 deaths and nearly 600 injuries, including women and children.
Diplomatic efforts remain strained. While the Italian foreign minister announced that a further round of Israel–Lebanon talks is scheduled for 4 August, U.S. Secretary of State Marco Rubio said in Manila that the United States would continue to protect shipping lanes and degrade Iranian capabilities unless Tehran commits to serious negotiations. President Trump signaled on Wednesday that there is no U.S. Interest in further talks until Iran is ready to meet in a meaningful way.
