War has cost Iraq $60 billion, foreign minister tells Italy

BAGHDAD — Iraq has suffered an estimated $60 billion in economic losses from the war between the United States and Iran, Foreign Minister Fuad Hussein told his Italian counterpart, warning that continued fighting threatens global energy supplies and could push inflation higher.

Hussein met Italian Deputy Prime Minister and Foreign Minister Antonio Tajani in Rome on Thursday, Iraq’s Foreign Ministry said in a statement released Friday. The war had deepened the global energy crisis and raised fears of inflation, with consequences reaching European economies, Hussein said, urging the European Union and individual European countries, including Italy, to back peace initiatives, encourage negotiations and help stop the conflict from spreading.

Prime Minister Ali al-Zaidi said in September that Iraq had lost nearly $60 billion in oil revenue since the war began, blaming restrictions on Iraqi tankers in the Strait of Hormuz and saying extensive talks with Tehran had failed to secure unrestricted passage. Exports fell from more than 99 million barrels in February to 18.6 million in March, cutting monthly revenue from more than $6.8 billion to about $1.95 billion, Oil Ministry figures show, and Oil Minister Basim al-Abadi said in July that monthly revenue had fallen to about $1.5 billion against $7 billion to $8 billion before the war. Exports have partly recovered, to about 2.35 million barrels a day in August and about 2.6 million in the first three weeks of September, against 3.3 million to 3.5 million before. Oil provides more than 90% of government revenue.

Hussein and Tajani also discussed expanding security and military cooperation after the end of the U.S.-led coalition’s mission on Sept. 30, when the last American and allied forces left Erbil Air Base and the anti-ISIS task force moved to Jordan. Hussein thanked Italy for its role in the fight against ISIS, particularly training federal police and Kurdistan Region Peshmerga. Italy, which had troops in Erbil with the coalition, also supported efforts to reform and unify the Peshmerga. Tajani condemned a drone attack on an Italian military facility in Erbil in March, saying all Italian personnel were safe.

The two ministers also reviewed outstanding financial and military matters with the Italian government and Italian companies dating back to the former regime, and discussed the war in Ukraine and regional developments affecting Iraq and the Gulf. Hussein invited Tajani to visit Iraq.