Iraq Warns of Global Economic Fallout from War and Sanctions on Iran

Iraq’s Foreign Minister Fuad Hussein said he discussed with Steve Fagin, the acting head of the U.S. Embassy in Baghdad, the consequences of war and Washington’s unilateral sanctions on Tehran, as well as their impact on Iraq.

He said any escalation in the region, especially if the Strait of Hormuz were to be closed, could make Iraq’s economy more vulnerable. The economy is fundamentally dependent on oil exports and the revenues they generate.

According to the Iraqi foreign minister, part of the talks also focused on regional developments, and the two sides exchanged views on the impact of these events on Iraq’s situation.

Fuad Hussein also said that the meeting addressed the Iraqi government’s approach to organizing weapons and restricting them to state control.

The Strait of Hormuz is one of the region’s key oil transit routes, and any disruption there typically has a direct effect on energy markets and countries reliant on oil exports, including Iraq.