Iraq Delays July Salaries as Hormuz Blockade Cuts Oil Revenue by 80%

Iraq's July public-sector salaries did not arrive on time. The Strait of Hormuz blockade has cut the country's oil export revenue by roughly 80 percent.

Oil exports fell from about 100 million barrels a month in February to about 32 million in May and June, according to The Jerusalem Post and The New Arab. Monthly oil income dropped from around $6.9 billion to about $1.3 billion.

Iraq spends between six and eight billion dollars a month on wages, pensions and social welfare. The numbers do not add up. The government spokesman confirmed a liquidity crisis.

An analyst cited by 964 Media said Iraq needs a 10 trillion dinar borrowing law, worth roughly $7.6 billion at the official rate, to cover salaries through the end of 2026. The finance ministry said it was working on domestic borrowing options.

The Jerusalem Post reported that some officials are pressing Iran-aligned political factions to push Tehran to exempt Iraqi oil exports from the Hormuz restrictions.