Polycrisis in Iraq Deepens as Iran War Disrupts Oil Exports and Trade Routes
Iraq is entering a critical phase of economic instability as the ongoing Iran-related conflict disrupts its most important revenue source—oil exports. With shipping routes constrained and regional tensions escalating, Iraq now faces what analysts describe as a “Polycrisis” , where multiple overlapping shocks threaten its economy, energy sector, and political stability. This situation highlights Iraq’s heavy dependence on oil exports and its vulnerability to geopolitical disruptions in the Middle East. What Is Happening to Iraq’s Oil Exports? Iraq’s oil exports have been severely impacted due to disruptions in the Strait of Hormuz , a vital maritime chokepoint through which a significant portion of global oil flows. Tanker movement through the Strait has been heavily restricted Export operations from southern terminals have slowed or halted Storage facilities are reaching capacity limits Oil production has been forced to decline due to export bottlenecks ...