Iraq risks economic blow if Hormuz closure blocks oil exports. The narrow Strait of Hormuz remains a vital route for global energy flow. Rising tensions in the region have sparked fears that Iran might close the strait. If that happens, Iraq’s economy could face major harm.
The Strait of Hormuz serves as a key passageway for Iraq’s trade. Iraq relies on this route for both imports and oil exports. Every day, ships pass through the strait to bring goods into Iraq. These include food, industrial tools, and other products for daily use. Iraq risks economic blow if Hormuz closure blocks oil exports and trade flow.
Iraq’s main port, Umm Qasr in Basra, uses this waterway. If the strait closes, essential imports will stop reaching the port. This would lead to shortages and rising prices across Iraq. Supermarkets, factories, and families would all feel the pressure.
More importantly, nearly 3.3 million barrels of oil leave Iraq each day from southern ports. These oil shipments move through the Strait of Hormuz. If the strait closes, Iraq would lose its main export path. This would cut government revenue sharply and shake global oil markets. Iraq risks economic blow if Hormuz closure blocks oil exports and hits public spending.
Iraq’s budget depends mostly on oil sales. As one of OPEC’s top oil producers, it relies heavily on this income. Any stop in oil flow would create a financial crisis. The government would struggle to pay for salaries, projects, and services.
Although Iraq has tried to reduce this risk by building pipelines to Turkey and Jordan, these routes remain limited. They do not carry enough oil to replace lost sea exports. Iraq still needs Hormuz to keep its economy running.
Beyond the economic risk, the crisis may also affect Iraq’s political choices. Baghdad would have to balance its ties with both Iran and the United States. This situation adds more pressure on Iraqi leaders already facing internal and external challenges.
Leaders in Baghdad continue to watch the situation closely. Iraq seeks peace in the region and hopes the Strait of Hormuz remains open. Yet the threat remains, and Iraq must prepare for any outcome.