Iraq reports $60bn loss as Middle East conflict disrupts regional aviation

The Middle East conflict has inflicted a $60 billion economic blow to Iraq, Foreign Minister Fuad Hussein confirmed on Friday, 16 October, as regional hostilities disrupt energy flows and air travel. The statement, issued during high-level talks in Rome, comes as Indian airlines extend flight cancellations to Saudi Arabia following an aerial attack on Riyadh’s international airport earlier this month. Iraq faces fiscal crisis amid waterway blockade Foreign Minister Hussein informed his Italian counterpart that Iraq’s losses have reached approximately $60 billion due to the ongoing conflict between the United States and Iran. A blockade of a critical waterway has choked global energy flows, causing Iraq’s foreign currency reserves to shrink by $20 billion. The Central Bank of Iraq recently devalued the dinar against the dollar for the first time in three years to mitigate the crisis. While oil exports recovered to 2.6 million barrels per day in September, the government is now aiming to raise non-oil revenue from 10 percent to 45 percent by 2037 to reduce volatility. Airlines extend Saudi flight suspensions In response to security concerns, Indian carriers have extended flight suspensions to Saudi Arabia. Air India and Air India Express have cancelled all services to Riyadh, Jeddah, and Dammam until 20 October. IndiGo and Akasa Air have extended their suspensions for Riyadh and Madinah until 24 October. The Indian Embassy in Riyadh reported on Friday that six Indian…