Iraq Warns of Economic Risks from Regional Tensions

Iraq has raised concerns about the potential economic and security impact of rising regional tensions following recent diplomatic talks with the European Union.

Fuad Hussein, Iraq’s Deputy Prime Minister and Minister of Foreign Affairs, met Klemens Semtner, head of the European Union Mission to Iraq, to discuss developments in the region and their implications.

Hussein said continued instability could affect Iraq’s economy, particularly oil export operations through key transit routes, and lead to fluctuations in public revenues.

Any disruption to oil income could impact the government’s ability to meet financial obligations, including salaries and pensions, he added.

He also noted that Iraq is navigating a sensitive phase and could face internal security challenges if tensions escalate further.

Iraq is seeking to maintain a neutral position amid regional tensions, pursuing a balanced policy aimed at avoiding involvement in conflicts while promoting dialogue and diplomatic solutions, Hussein said.

He called on the European Union to support efforts to reduce tensions and encourage negotiations to maintain regional stability.

The EU mission reaffirmed its support for Iraq’s stability and emphasised the importance of continued coordination to address shared challenges.