Global energy markets experienced unprecedented turmoil following a sudden spike in crude oil prices by over 5%, driven by escalating security risks and the closure of strategic maritime corridors, specifically the Strait of Hormuz. For Iraq, whose economy relies almost entirely on oil revenues, this surge acts as a double-edged sword. On one hand, it will lead to an immediate increase in dollar revenues flowing into the public treasury, granting the government more fiscal space to meet its obligations. On the other hand, this geopolitical tension raises serious concerns regarding the safety of export routes and the rising costs of insurance and shipping. This complex situation requires the Iraqi economic administration to build robust contingency plans and wisely utilize the expected financial surpluses to support cash reserves, rather than expanding consumer spending, in anticipation of any potential reverberating shocks that may soon hit the oil market.