Iraq devalues its currency as the Iran war chokes off Strait of Hormuz oil shipping routes

From the Newshound archive · first published 7 October 2026.

Iraq's central bank has officially devalued the dinar from 1,300 to 1,500 to the US dollar after the US-Iran war disrupted Strait of Hormuz shipping, forcing Baghdad to reroute oil exports overland through Syria at far greater cost. The Cabinet approved the move overnight, but the market rate immediately surged past 1,700 dinars to the dollar after the announcement, signalling that traders expect further pressure.

Iraq previously set its exchange rate in 2023; the war has since cut off the strait route that carried most of its oil exports.

The US Energy Information Administration has also raised its oil price forecasts again, warning the war is draining global stockpiles.

Families of some US troops killed in the conflict's deadliest strike stayed away from a White House commemoration event, deepening questions over the war's human toll.