REPORT: Impact of attacks on Iran in Iraq so far

3 hours ago 1

Impact of attacks on Iran in Iraq so far:

- Closing of airspace & suspension of ops at Iraqi airports. Pics from empty Najaf Airport.

- $ exchange rate keeps changing. Problem for Iraq’s economy as it’s pretty dollarized.

- PMF cancels anniversary events scheduled for tomorrow.

Economic Impact of Attacks on Iran in Iraq So Far

Investor Confidence Decline: Ongoing violence and instability caused by attacks on Iranian targets in Iraq have discouraged both local and international investors. Many fear the country is becoming a battleground for regional powers.
Oil Sector Risks: Iran-backed militias are influential in Iraq's oil-rich regions, especially in the south. Escalating tensions threaten oil infrastructure and production, which is the backbone of Iraq’s economy.
Currency Fluctuations: Security threats often lead to speculation and uncertainty in the financial markets, causing instability in the Iraqi dinar and driving up inflation risks.
Trade Disruption: Iraq maintains economic ties with Iran, including electricity imports and border trade. Strikes on Iranian assets and growing tensions could disrupt this exchange, affecting local markets and prices.
Budget Pressure: With the need to increase security spending and repair infrastructure damaged by conflict, Iraq’s public budget faces additional stress, reducing funds for public services and reconstruction.
Reduced Economic Growth: Overall, the conflict environment hampers Iraq’s ability to implement reforms, attract business, and grow its non-oil sectors, all of which are crucial for long-term economic stability.