Closure of Strait of Hormuz has direct impact on Iraq’s economy, finance minister says

Iraqi Finance Minister Falih Saray said on Sunday that the closure of the Strait of Hormuz has had a direct impact on Iraq’s economy, noting that the ministry is working to overcome current challenges by increasing non-oil revenues and continuing on the path of reform.

In a statement carried by the Iraqi News Agency (INA), the Ministry of Finance said the minister discussed aspects of economic and financial cooperation between Iraq and the United Kingdom with British Ambassador to Iraq Irfan Siddiq.

The minister affirmed that Iraq is moving toward approving its first-ever program and performance-based budget, adopting a new methodology for managing public spending that links resource allocation to objectives, programs, and results, in order to enhance the efficiency of public funds.

He explained that the closure of the Strait of Hormuz has had a direct effect on Iraq’s economy, given the region’s trade activity and oil flows, stressing that the ministry remains committed to overcoming current circumstances by boosting non-oil revenues, developing financial management tools, and continuing reforms.

For his part, the British ambassador reiterated the UK’s support for Iraq, confirming the United Kingdom’s readiness to continue providing technical and advisory expertise in economic and financial fields, to help strengthen Iraqi institutions and further develop cooperation between the two countries.