Due to the Iran war, Iraq is running out of money
Because of the blockage of the Strait of Hormuz, Iraq cannot export enough oil to fund the country's huge public sector. Protests have already started. Will the Iran war destabilize Iraq again?
The ongoing conflict in Iran is causing financial strain for Iraq, as the country's oil exports through the Strait of Hormuz are severely impacted. Mahmoud Waleed, a 38-year-old teacher, is one of the many ordinary Iraqis struggling with delayed salaries due to the lack of government cash flow. The dispute between Israel, the US, and Iran since February has resulted in the strait being blocked, causing Iraq's oil exports to plummet by 83% in March and 97% by May.
This decrease has led to a significant drop in Iraq's monthly income, with figures ranging between $2 billion and $2.3 billion in May and June. Iraqi Prime Minister Ali al-Zaidi recently requested special permission to pass Iraqi oil through the strait, but the situation remains uncertain, with experts predicting the crisis could last until 2028.
Written by urgent.news from DW News's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
