Iraq economic fallout is becoming unavoidable as the Iran-Israel war enters its sixth day. Although Iraq is not directly involved, the crisis is affecting it sharply.
On Wednesday, June 18, 2025, international economics expert Dr. Nawar Al-Saadi outlined the immediate dangers. He highlighted three urgent issues facing Iraq’s economy today.
First, the Iraqi market is seeing a spike in the US dollar exchange rate. This trend is fueling inflation and reducing people’s purchasing power.
Second, fear of regional instability has halted investment and slowed trade. Businesses are waiting to see how the situation unfolds. Investors are avoiding risk until the region calms down.
Third, prices for food items are climbing. People fear supply chain disruptions due to border closings or trade blockages. Panic buying has already started in some areas.
Dr. Al-Saadi warned that if the conflict spreads, the damage will escalate dramatically. The biggest threat lies in Iraq’s dependence on oil exports. These exports pass through the Strait of Hormuz—now a possible war zone.
Any closure or military strike in that area would block Iraq’s lifeline. Without oil revenues, Iraq’s budget could collapse, creating what he called a “suffocating financial crisis.”
Moreover, he emphasized that the real risk is not just short-term shocks. A long war of attrition could paralyze Iraq’s already fragile economy. Delays in reform and recovery would worsen the hardship.
To minimize long-term harm, Dr. Al-Saadi called for immediate government action. He urged stronger financial oversight, food security planning, and market protection.
In summary, Iraq economic fallout is already evident. Rising prices, a weaker currency, and market fear are early signs. If Iraq fails to act quickly, deeper economic pain could follow. Strengthening the economy now is the only way to face what may come next.
In summary, Iraq economic fallout is already evident. Rising prices, a weaker currency, and market fear are early signs. If Iraq fails to act quickly, deeper economic pain could follow. Strengthening the economy now is the only way to face what may come next.
