Iraq’s oil revenues fell by 53% during the first seven months of 2026, while non-oil revenues increased by 23.5% compared with the same period last year, Susan Abdullah Mohammed, head of the Federal Public Authority for Monitoring Revenue Allocation, announced on Wednesday.
Mohammed said federal state account data released by the Ministry of Finance’s Accounting Department through the end of July showed that total public revenues declined from approximately IQD 72 trillion in the first seven months of 2025 to IQD 39.1 trillion during the corresponding period this year, a decrease of around 45.7%.
Oil revenues fell from approximately IQD 65 trillion to IQD 30.4 trillion, underscoring the financial pressure on Iraq as income from its primary source of public funding continues to decline.
Meanwhile, non-oil revenues rose from IQD 7.1 trillion to approximately IQD 8.7 trillion, representing a 23.5% increase over the same period.
Mohammed noted that oil’s share of total public revenues dropped from around 90% to 78%, while the contribution of non-oil sources increased. Nevertheless, she stressed that this growth remains insufficient to compensate for the substantial losses in oil income.
She called for expanding non-oil revenue streams to strengthen fiscal stability and reduce dependence on oil exports. This would require improving tax collection and revenue administration systems while enhancing transparency and oversight of federal resources.
The figures come as Iraq faces mounting economic and fiscal challenges amid the closure of the Strait of Hormuz due to the war. The waterway is a critical route for Iraqi oil exports, and the country continues to rely heavily on oil income to finance its national budget.
An earlier International Monetary Fund report also warned of the economic consequences of regional instability in 2026, identifying Iraq as one of the countries most vulnerable to its effects, particularly in relation to inflation, external balances and public finances.
