Iraq's cabinet approved a supplementary budget of 10.875 trillion dinar ($9.35 billion) for 2012 on Tuesday, adding to a $100.5 billion package agreed by parliament in February, the government spokesman said in a statement. Budgetary matters usually pass through parliament after approval by the cabinet. The budget approved in February was based on an average world oil price of $85 a barrel and 2.6 million barrels per day in crude exports.
The Opec member state, which is trying to rebuild its battered economy after years of war and sanctions, depends mainly on oil revenue which funds about 95 percent of its budget. Its vast reserves are the world's fourth largest. Brent crude has traded well above Iraq's budgeted price and advanced by more than $3 to over $100 on Tuesday after Iranian lawmakers drafted a bill calling for the country to shut off the Strait of Hormuz through which much of the world's oil is transported.