Iraq's markets feel the strain as regional tensions drive up prices

Ajouté : 2026-05-28

[00:00:00]At this market in central Baghdad, shoppers are tracking every purchase they make. Economic uncertainty has become part of daily life.

[00:00:09]But families say prices of basic goods have climbed in recent weeks as efforts to end the Iran conflict and reopen the Strait of Hormuz have a stalled.

[00:00:21]It is a paradox that countries involved in conflict, especially Iran, are less affected because they depend more on domestic production. Iraq relies heavily on imports. So, the closure of the Strait of Hormuz has driven up prices and caused shortages.

[00:00:39]Across the capital, shoppers compare prices and search from a stall to stall for the cheapest options.

[00:00:48]Prices of several basic goods and everyday items have increased. There are concerns that even if regional tensions persist, food and commodity prices in Iraq could remain high.

[00:01:00]Here in Baghdad, many people say their biggest fear is not only the conflict in the region, but the economic shockwaves that could follow.

[00:01:10]The country depends heavily on oil revenues, and even distant tensions can shape the realities of millions of families.

[00:01:19]The pressure is spreading to construction and industrial supplies.

[00:01:27]There is currently a shortage of goods due to the closure of the Strait of Hormuz. Shipping costs from China, which were around $4,000, have surged to more than 9,000 per container. The added transport and insurance expenses are being passed directly onto consumers, pushing prices up by about 30%.

[00:01:47]And in the capital's currency exchange offices, attention is on the dollar.

[00:01:56]Currency values are driven by supply and demand, and demand for and demand for dollars has risen amid fears of a possible war. Much of the demand comes from traders who need dollars for imports and business deals, while many ordinary people see the dollar as a safer way to protect their savings.

[00:02:13]Life in Baghdad seems normal on the surface, but behind the crowded markets and busy streets, many Iraqis are preparing for the potential cost of another regional crisis.

[00:02:25]Mahmoud Abdulwahid, Al Jazeera, Baghdad.