Iraq's Economy Grinds to a Halt as Iran War Disrupts Oil Exports

For thousands of ordinary Iraqis, life has become increasingly difficult due to the ongoing war in Iran. Many are not being paid on time because their salaries depend on oil exports through the Strait of Hormuz, which have been severely disrupted.

Mahmoud Waleed, a 38-year-old teacher from Mosul, has seen his salary delayed for three months. He is not alone, thousands of Iraqis rely on state employment and are struggling to cope with the financial strain. 'The delay affects you a lot,' Waleed said.

According to experts, almost all of Iraq's national budget comes from oil exports, around 85-90% of which passes through the Strait of Hormuz. The blockade has led to a drastic reduction in Iraqi oil exports, with shipments decreasing by 83% in March and 97% in May compared to last year.

The government claims it still has enough reserves to pay salaries for the next 10-11 months, but experts warn that this may not be enough. Oxford Economics predicts that maritime traffic through the Strait of Hormuz will remain below pre-conflict norms until at least 2028.