Iraq risks 80% oil revenue loss in renewed Hormuz closure

A renewed closure of the Strait of Hormuz could slash Iraq’s oil revenues by up to 80 percent, threatening government salaries, public services and the dinar, development and investment advisor Mohammed Al-Najjar has warned.

Al-Najjar said a prolonged conflict involving Iran could keep crude prices above $100 per barrel, potentially reaching $130.

Higher prices would drive up fuel, food and travel costs without necessarily benefiting Iraq if exports, trade and investment remained disrupted, he said, quoted by Shafaq news agency and other Iraq media outlets.

A settlement, meanwhile, could bring oil prices down to around $74 per barrel and support a recovery in global growth in 2027.

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