Iraq Seeks Urgent IMF Assistance Amid Middle East Conflict

Iraqi officials have initiated discussions with the International Monetary Fund (IMF) seeking financial assistance due to the escalating conflict in the Middle East, according to a source familiar with the negotiations.

These initial conversations were held last month during the IMF and World Bank spring meetings in Washington. The discussions revolve around how much funding is required and the structure of any potential loan.

The conflict started on February 28 with a substantial U.S.-Israeli bombing campaign against Iran, leading to Tehran's closure of the Strait of Hormuz. The ensuing disruption severely impacted Iraq's economy, cutting off oil exports that account for nearly all government income. As Iraq holds the world's fifth-largest petroleum reserves, the situation is dire. The IMF and the Iraqi embassy have so far declined to comment.

(With inputs from agencies.)