War-Stricken Basra Suffers as Iraq's Economy Hangs in Balance

The Iraqi oil hub of Basra is suffering from the ongoing Middle East war, which has put a serious crimp on the city's economy. Maintenance contractor Fawzi spends his days waiting for work that seldom comes as private contractors scale back operations in response to Iran's blockade of the Strait of Hormuz.

Crude oil exports account for almost 90% of Iraq's foreign revenue, and the country relies heavily on its main export route through Hormuz. The war has exposed Iraq's dependence on oil and dealt a setback to its economic recovery after decades of conflict.

Fawzi said his company first slashed salaries by 20%, then by half, before laying off dozens of employees. He now reports for duty just 15 days a month. Basra's parking areas overflow with oil trucks that linger empty or wait weeks with full tanks to load their crude onto ships.