Iraq's Economy Suffers as Oil Export Crisis Continues

The ongoing closure of the Strait of Hormuz has caused an oil export crisis that is weighing heavily on Iraq's economy. Many public employees in Iraq have not received their July salaries due to a lack of funds, according to Arab media reports. The Finance Ministry spends approximately $6.5 billion per month on salaries, pensions, and social welfare payments.

A senior ministry official stated that if the export disruption continues, it will be impossible to pay salaries on time from now on. Plans are being considered to pay salaries every 45 days instead of monthly.

Iraq's oil exports have plummeted from 100 million barrels in February to around 32 million in May and June. The country's economy is heavily reliant on oil, which accounts for 90% of government revenue and 95% of export earnings.