Iraqi MP Bassem al-Gharabi has warned that rising regional and international tensions could have serious consequences for Iraq’s economy, especially because the country remains heavily dependent on oil revenues.
Speaking on Saturday, al-Gharabi said the ongoing geopolitical tensions are creating economic risks that could directly impact Iraq. He noted that the state budget relies primarily on income from oil exports, making the economy highly vulnerable to fluctuations in global markets and regional instability.
According to al-Gharabi, successive governments have failed to diversify the country’s sources of revenue, leaving Iraq exposed to external shocks and international crises. He argued that this continued dependence on oil has weakened the economy’s ability to withstand unexpected challenges.
He also pointed to a recent Reuters report that highlighted a decline in Iraqi oil exports due to regional tensions. Al-Gharabi described the report as a warning sign that requires immediate attention and proactive measures from the government.
The lawmaker cautioned that any prolonged reduction in oil exports or decline in oil revenues could trigger a broader economic crisis. Such a situation, he said, could threaten Iraq’s economic stability and affect the government’s ability to meet its financial commitments, fund public services, and maintain essential state operations.
Earlier, Reuters cited sources from oil trading companies who reported that Iraqi oil exports had fallen by between 2.5 million and 3 million barrels per day compared with normal levels, largely due to escalating regional tensions.
Al-Gharabi stressed that the current situation highlights the urgent need for economic reforms, stronger revenue diversification, and measures to reduce Iraq’s dependence on oil as the primary source of national income.
