No oil, no salary: Iraqi state employees are feeling the crunch of the Hormuz blockade

Thousands of kilometers away, the Strait of Hormuz and its blockade have become a pressing issue for ordinary Iraqis. Mahmoud Waleed, a 38-year-old teacher paid by the Iraqi Ministry of Education, has noticed his salary arriving later and later due to Iraq's inability to export enough oil through the Strait. The delay affects many, as they have financial obligations and basic living expenses.

Waleed expressed anxiety and fear about the uncertain future, as his last salary was delayed by more than 10 days this month. Ahmed, a doctor from Mosul, also shared his concerns about delayed salaries, which now exceed 10 days each month. Iraq's national budget relies heavily on oil exports, which have plummeted by 83% in March and 97% by May due to the Hormuz blockade.

As a result, Iraq's monthly income has decreased to between $2 billion and $2.3 billion, far below the required amount. Despite the Iraqi government's reassurances about having $83 billion in reserves, the situation remains critical. Experts warn that the crisis transcends the oil sector, as the entire Iraqi economy is now dependent on oil revenues.

While protests about delayed salaries have not yet become widespread, the government faces the challenge of implementing reforms to reduce dependency on oil and offer alternative job opportunities, while also managing to pay salaries for the next 10 to 11 months.