Iraq puts war losses at $60 billion, reserves down $20 billion

Iraq has lost about $60 billion since the war in the Middle East began, its foreign minister said on Friday, as the blockade of the Strait of Hormuz cut deeply into the country's oil exports.

"Iraq has suffered losses estimated at about $60 billion during the recent war between the United States and the Islamic Republic of Iran," Fouad Hussein said during a meeting in Rome with his Italian counterpart, according to a statement from Iraq's foreign ministry.

Before the conflict, which began in late February with Israeli and US strikes on Iran, Iraq produced about 4 million barrels of oil a day and exported 3.5 million, mostly from the south through the Strait of Hormuz. Iran's restrictions on shipping through the strait forced Baghdad to shut down most of its fields, because it lacked the storage capacity to keep pumping. Iraq has relied on limited exports through Syria, by tanker truck, and through a pipeline to Turkey.

Exports have since recovered somewhat, reaching 2.6 million barrels a day between September 1 and 21, according to the oil ministry. Oil provides 90% of the state's revenue.

But Iraq's foreign currency reserves have fallen by $20 billion, and consumer prices have risen sharply. Last week the central bank raised the official dollar exchange rate for the first time in more than three years.

Iraq depends on oil dollars to pay for imports, steady the dinar and cover the salaries and pensions of public-sector workers and retirees, who make up about 20% of its more than 46 million people. Baghdad wants to raise the share of non-oil revenue from 10% to 45% by 2037.

The International Monetary Fund said this week that Iraq was among the countries hardest hit by the war's disruption to transport.