Due to the Iran war, Iraq is running out of money

The ongoing conflict in Iran is causing financial strain for Iraq, which is now struggling to pay its employees on time. This is largely due to the blockade of the Strait of Hormuz, preventing Iraq from exporting enough oil to maintain its budget. The Ministry of Education, for instance, is delaying the payments to teachers like Mahmoud Waleed, a 38-year-old teacher, who must now adapt to reduced expenses and increased anxiety.

Ahmed, a doctor from the same city, also shared his concerns about the delayed salary, emphasizing the uncertainty surrounding future delays. Iraq's national budget heavily relies on oil exports, accounting for 85-90% of its total income. With the majority of its oil shipped through the Strait of Hormuz, Iraq's economy is directly impacted by the blockade.

The Iraqi government has attempted to address the issue by denying rumors of 45-day salary payments and claiming it still has $83 billion in reserves. However, a report by Oxford Economics suggests that maritime traffic through the Strait of Hormuz will remain below pre-conflict norms until at least 2028, prolonging the financial crisis.

Iraqi economist Ali Al-Rawi warns that the crisis extends beyond the oil sector, as the entire economy is now dependent on oil revenues. While the government has implemented measures to control protests, the situation could worsen if salary delays coincide with other issues, such as electricity shortages and inflation.