Talks on possible loan package began during IMF-World Bank meetings in Washington as Hormuz closure hits Iraq’s oil-dependent economy
Iraq has approached the International Monetary Fund (IMF) for financial assistance as the ongoing conflict in West Asia and the closure of the Strait of Hormuz continue to strain the country’s economy and oil revenues, a source close to the IMF told Reuters on Thursday.
According to the report, initial discussions took place during the IMF and World Bank spring meetings in Washington last month, with talks continuing over the size of potential assistance and the possible structure of any loan package.
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The regional conflict, which began on February 28 following a large-scale US-Israeli bombing campaign against Iran, has severely disrupted economic activity across the West Asia after Tehran moved to close the Strait of Hormuz — one of the world’s most important oil transit routes.
Iraq has been among the countries hardest hit by the disruption, as the closure of the strategic waterway has sharply affected its oil exports, which account for nearly all government revenue.
Iran has largely shut the Strait of Hormuz to ships apart from its own since the United States and Israel launched their bombing campaign two-and-a-half months ago, causing the biggest ever disruption to global energy supplies. The U.S. paused the bombing last month but added a blockade of Iran’s ports.
The Strait of Hormuz previously carried around one-fifth of global crude oil supplies, and the prolonged disruption has triggered wider concerns over energy markets, government finances and regional economic stability.
First Published:
May 14, 2026, 21:14 IST
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