ERBIL, Kurdistan Region of Iraq – Iraq’s newly appointed Finance Minister Falih al-Sari on Sunday stressed the need to increase revenue from the ministry’s non-oil sources amid the decline in the country’s oil exports due to ongoing restrictions on transit via the Strait of Hormuz.

Sari held the finance ministry’s first meeting under Iraq’s new government, days after Prime Minister Ali al-Zaidi’s proposed cabinet was approved in a parliament session.

The new finance minister said that “the current situation requires exceptional effort,” stressing the need for “maximizing public revenues in the bodies and departments affiliated with the ministry, which will contribute to meeting the state’s financial obligations, amid the challenges” related to the energy market and Iraq’s reduced ability to transport its oil.

Iraq exported only 10 million barrels of oil in April and 18.6 million barrels in March, according to Oil Minister Basim Mohammed Khudair, marking a significant decline compared to the nearly 100 million barrels Iraq sold to international markets a month earlier in February.

The drop in export capacity is a direct result of the tightened restrictions placed on the vital Strait of Hormuz, amid the tensions between the US and Iran. The regional turmoil has forced Iraq to explore northern routes in a scramble to sell more oil, such as Turkey’s Ceyhan port.

Sari emphasized the importance of “uniting efforts and working as a team to face the current economic and financial challenges.”

The new minister, nominated by the National Wisdom (Hikma) Movement, was appointed to his role as part of Zaidi’s cabinet in a parliamentary session on Thursday, replacing former Finance Minister Taif Sami.

The session saw 14 ministers be confirmed in their role, while the ministers of defense, interior, culture, and others failed to be appointed. Iraqi state media reported that 270 lawmakers were present for the voting.