Iraq’s federal revenues fell by 42% in June 2026 compared with the same month last year. The Iraq revenue declinehighlights the country’s continued dependence on oil exports. At the same time, stronger non-oil income provided some support for government finances.
Federal revenues reached about 35.94 trillion Iraqi dinars in June 2026. That figure equals roughly $27.45 billion based on the reported exchange rate. Revenues stood at around 62 trillion dinars, or $47.3 billion, in June 2025.
Oil income accounted for most of the decline during the month. Iraq collected approximately 28.5 trillion dinars from oil exports in June 2026. The figure compares with 57.05 trillion dinars during June 2025.
The difference represents a drop of about 28.54 trillion dinars. In dollar terms, the decline reached approximately $21.79 billion. The sharp reduction shows how changes in oil earnings can quickly affect Iraq’s public finances.
However, non-oil revenues moved in the opposite direction. Iraq collected nearly 7.44 trillion dinars from non-oil sources during June 2026. That figure increased from approximately 4.95 trillion dinars in June 2025.
The changing revenue structure also reduced oil’s share of total government income. Oil accounted for about 80% of revenues in June 2026, compared with 92% a year earlier. Meanwhile, non-oil revenues increased their share from 8% to 20%.
The Iraq revenue decline comes as global commodity markets face continued uncertainty. The World Bank has repeatedly warned that commodity price fluctuations can create major challenges for energy-exporting economies. Iraq remains particularly exposed because oil provides the largest share of government income.
The World Bank’s June 2026 economic outlook also identified Iraq as a developing economy with significant exposure to commodity earnings. Oil remains the country’s most important source of export and government revenue. This dependence leaves public finances vulnerable when international energy markets experience major disruptions.
Regional conflict has added another layer of uncertainty for Iraq’s economy. The recent Middle East conflict caused significant volatility across global commodity markets. Oil, metals, and agricultural products all experienced major price movements during periods of heightened instability.
Iraq’s broader economic performance also reflects these challenges. The economy grew by 0.5% in 2024 before contracting by an estimated 1.5% in 2025. The World Bank expects economic performance to remain under pressure during 2026.
Despite the current weakness, longer-term forecasts point toward a potential recovery. The economy could record growth of around 12.2% in 2028, according to the cited projections. However, the recovery will depend on economic stability, oil revenues, investment, and improved diversification.
The World Bank considers Iraq particularly vulnerable to regional developments. Its growth outlook remains weaker than that of several other oil-producing economies in the Middle East. This vulnerability makes efforts to strengthen non-oil revenues increasingly important.
The Iraq revenue decline in June therefore highlights both a financial challenge and a potential opportunity. Rising non-oil income shows that other revenue sources can contribute more significantly to the budget. Expanding those sources could help Iraq reduce its exposure to future oil market shocks.