Regional Tensions Test Iraq’s Trade and Fiscal Buffers
A new assessment highlights exposure in trade routes, banking, fuel supply and budget planning as regional instability raises economic risks.
Iraq’s brief closure of several crossings with Iran in September demonstrated how quickly regional security events can affect commercial flows. Trade continued through other routes and crossings later reopened, but the episode underscored the cost of disruptions for import-dependent supply chains.
The report also points to an unfinished 2027 budget process and wider questions over monetary resilience, fuel supply and public finance. These issues are becoming more important as Baghdad weighs how to protect economic channels amid regional volatility.
Original reporting: Shafaq News ↗