Profile Before 1990, Iraq was the world's third-largest oil supplier. Under sanctions, oil was produced only for domestic consumption. Limited oil exports under strict UN supervision were resumed for the first time in December 1996. The denial of Western assistance following the 1991 Gulf War has stifled Iraq's economy, although the recent resumption of informal economic links with France and Russia may lead to some improvement. The once thriving agricultural sector was badly affected by the war.
Manufacturing industry is at a standstill.
The introduction of draconian penalties, including the death sentence, have failed to curb the black market or halt the sharp depreciation in the value of the dinar.