Iraqi officials have approached the International Monetary Fund for emergency financial support as the regional war continues to impact the country’s economy, according to a source familiar with the discussions.

The source said preliminary talks took place during the IMF and World Bank Spring Meetings in Washington last month, with discussions continuing over the size of the funding Iraq may request and how a potential loan could be structured.

The war, which began on February 28, has shaken economies across the Middle East, damaging infrastructure and disrupting trade and energy markets throughout the region.

Iraq has been among the countries hardest hit, as the closure of the Strait of Hormuz has effectively halted most of its oil exports. The strategic waterway previously carried around 20% of global crude oil supplies.

Because Iraq relies heavily on oil revenues to fund government spending, the disruption has placed significant pressure on the country’s finances and raised concerns about broader economic instability.