IRAQ NEWS HEADLINES
Iraq’s government is pushing ahead with banking and financial reforms under pressure from international advisors and investors.
Talks about currency redenomination or revaluation of the Iraqi Dinar (IQD) continue, but no official change has occurred yet.
The Central Bank of Iraq (CBI) is working to modernize the banking sector, increase digital transactions, and reduce corruption.
How the Iran-Israel War Could Affect Iraq and the Iraqi Dinar
The ongoing or potential conflict between Iran and Israel could have serious implications for Iraq, especially in terms of its political stability, economy, and the value of its currency — the Iraqi Dinar (IQD).
Regional Instability:
Iraq is geographically and politically caught between Iran and other U.S.-backed allies in the region. A war involving Iran could spill over into Iraq, either directly through militia activity or indirectly by disrupting borders and trade routes.
Iranian Influence in Iraq:
Iran has historically exerted strong influence over certain factions within Iraq, including militias and parts of the government. If Iran becomes deeply engaged in war, it could destabilize Iraq internally, especially if pro-Iranian groups take sides or act independently.
Investor Confidence:
Investors tend to avoid countries near war zones or those politically aligned with a warring nation. This reduces foreign investment in Iraq, which is crucial for economic growth and currency stability. Low investor confidence can weaken the Iraqi Dinar.
Delays in Economic Reforms
:
Iraq has been working on economic reforms, including banking modernization and currency revaluation. Conflict in the region could delay or derail these plans, as security and politics take priority.
Oil Market Volatility:
Iraq depends heavily on oil exports. A war in the Middle East could raise oil prices globally, which might benefit Iraq in the short term. However, if Iraqi oil infrastructure is threatened or export routes are blocked, it could damage the economy instead.
Pressure from International Powers:
If the war escalates, Iraq may come under pressure from both the West and Iran to take sides or allow military movements through its territory. This could lead to sanctions or internal unrest, affecting the economy and the value of the Dinar.
Conclusion:
The Iran-Israel conflict increases uncertainty for Iraq. While there might be short-term benefits if oil prices rise, the long-term risks — including instability, loss of investor trust, and delays in economic reform — could weaken Iraq’s economy and negatively impact the Iraqi Dinar.
IRAQ NEWS HEADLINES
Iraq continues to benefit from high global oil prices, especially amid tensions in the Middle East.
Oil exports account for over 90% of government revenue, so Iraq’s economy is heavily influenced by global energy markets.
In May 2025, Iraq exported over 3.5 million barrels per day, mainly to China, India, and Europe.
Walkingstick
The problem used to be Iran. We got security and stability.
The 8th floor [the US Treasury's permanent office in the CBI building] is really controlling them. The problem now is the dinar mattresses.
Shafaq News/ The ongoing war between Israel and Iran has thrown regional air travel into disarray, stranding thousands of passengers and forcing Iraqis to return home by land—only to face chaos, inflated transport fees, and a lack of government oversight.
Since the escalation began on Friday, Iraq suspended its airspace as a security precaution, leading to widespread flight cancellations and diversions. While southern airspace was later reopened for limited daytime flights through Basra International Airport, many Iraqi travelers—especially pilgrims—remained trapped in Iran, Turkiye, and Lebanon. With air routes disrupted, land crossings became the only option home, but the journey proved anything but smooth.
Returnees arriving at Iraq’s borders encountered soaring transport costs and unregulated conditions. Um Tabarak, a mother of three from Baghdad, said she was shocked after returning from Turkiye when a driver demanded $150 to take her home. “There was no system, no oversight—just exploitation and a complete disregard for our humanity,” she told Shafaq News.
Um Hassan from Karbala noted that she paid $300 for a taxi from Qom to the Mehran border crossing—triple the usual fare. “I had gone for medical treatment, spent everything I had, and barely made it back,” she shared with our agency. “I had no choice.”
Abu Mustafa from Najaf recounted being stuck in Mashhad in Iran after falling victim to a flight scam. “I lost all my money and couldn’t leave until some strangers helped me return.”
The crisis reached Lebanon as well. In Beirut, dozens of stranded Iraqis staged a protest outside the Iraqi embassy, denouncing what they called a failure to organize their return. Eyewitnesses reported to our agency that Lebanese police intervened to defuse tensions, though no injuries were reported.
Calls for government intervention have grown louder. Struggling Iraqis are urging the Ministry of Transport and the Border Crossings Authority to step in, organize affordable transport, enforce price regulations, and deploy inspection teams to prevent further abuse.
The Ministry of Transport, however, denied any irregularities. It confirmed that land transportation was operating “smoothly” and that necessary services were being provided in coordination with the Authority.
Ahmad al-Moussawi, Director of the General Company for Private Transport, told Shafaq News that he and senior officials are stationed at the Zurbatiyah crossing under direct instructions from Prime Minister Mohammed Shia al-Sudani. “We’re monitoring transport operations, overseeing the return of foreign pilgrims, and penalizing violations of pricing rules,” he said.
Still, al-Moussawi acknowledged that the ministry holds no authority inside Iranian territory or at the Ibrahim al-Khalil crossing, which falls under the Kurdistan Regional Government.
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