Iran War Halts Iraq Oil Exports

A month-long war in Iran, initiated by U.S.-Israeli strikes, has severely impacted Iraq's economy, particularly its vital oil sector and trade. Oil production in southern Iraq, primarily Iraq===Basra province, has plummeted by over 70%, and exports through the Strait of Hormuz have ceased due to Iran's actions. This has led to a 50% reduction in imported goods reaching Iraqi ports, forcing the government to consider issuing bonds. Drone and missile attacks have targeted U.S. military bases, American companies like KBR, and British Petroleum's oil fields, causing foreign workers to evacuate. The United Arab Emirates has become a costly alternative gateway for Iraqi imports. The conflict has also disrupted trade at the Iraq-Iran border, highlighting the widespread economic and logistical challenges faced by Iraq due to the ongoing geopolitical tensions.