Shafaq News- Baghdad

Iraq recorded the sharpest increase in borrowing costs among regional countries due to disruptions in the Strait of Hormuz, with yields rising by 0.64 percentage points to 7.1%, according to the United Nations Conference on Trade and Development (UNCTAD).

Data showed varying increases across the region, with Bahrain rising by 0.41 percentage points to 7%, Saudi Arabia and Oman each up by 0.26 points, and Jordan by 0.24 points. The UAE, Qatar, and Kuwait saw smaller increases ranging between 0.27 and 0.28 points, while Kuwait remained the lowest overall at 4.4%.

The organization noted that rising borrowing costs have added economic pressure amid escalating tensions in the Strait of Hormuz, where disruptions to energy and fertilizer flows have led to a near halt in shipping since late February 2026. Transport and maritime insurance costs have surged by more than 90%, driving sharp increases in oil, gas, and fertilizer prices and directly impacting food production and prices in Iraq and other import-dependent countries.