Iraq leans on central bank reserves to weather oil export collapse

Indirect borrowing from foreign reserves is keeping the government afloat, but Iraq's fiscal leeway is shrinking fast.

Iraqi Prime Minister Ali al-Zaidi (center) meets with the newly appointed governor of the Central Bank of Iraq, Nizar Nasser Hussein (left), along with the outgoing bank governor, Ali al-Alaq, in Baghdad on June 21, 2026. (Photo credit: Prime Minister's Office)

Energy

Southern export uptick unlocks production gains

A partial resumption in tanker traffic has enabled at least 250,000 bpd in increased oil output, but a full recovery still depends on wartime dynamics outside Iraq’s control.

Politics

Analysis: Worsening internal rivalries weaken KRG at key political juncture

Conflict between the KDP and PUK has driven dysfunction in Erbil and weakened Kurdish influence in Baghdad as a new government takes power.

Security

As Iraq tries to rein in paramilitary groups, oil sector threats remain

Several armed groups say they will put their weapons under state control, but the most aggressive Iran-backed fighters remain outside the process.

Interviews

Q&A: Bassim Mohammed Khudair, Deputy Oil Minister for Upstream

Iraq's top upstream oil official confirms that production, curtailed by war, is ready to surge back online — but only once ships can reliably resume Basra Gulf export loadings.