2026-03-12T14:10:40+00:00
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Shafaq News- Baghdad
Standing in front of a grocery stall in Baghdad, Um Jaafar
carefully counts the cash in her hand before deciding what she can afford to
buy. Prices of basic food items have risen again, forcing her family to reduce
what they purchase during Ramadan.
“Every shopping trip costs more than the last,” the Baghdad
housewife told Shafaq News. “We try to buy what we need, but sometimes we leave
things behind because the prices have gone up.”
Across Iraqi markets, prices of several staple food
commodities have increased in recent weeks as instability in key maritime
routes linked to tensions around the Strait of Hormuz begins to affect global
trade, traders and economic experts say.
Although some goods have remained relatively stable,
imported food items have recorded noticeable increases, with traders reporting
price hikes of up to 25% in certain products.
At Baghdad’s Jamila industrial area —one of the capital’s
main hubs for food storage and distribution— a wholesale trader said the price
of a 30-kg bag of rice has risen by about 10%, reaching around 55,000 Iraqi
dinars ($42), compared with roughly 50,000 dinars a week earlier. Some cooking
oil varieties have also increased by about 23%, reaching nearly 3,000 dinars
per liter. On average, prices of several food commodities have climbed by
roughly 17% during the same period.
Another Baghdad resident, Um Ahmed, said the increases are
particularly difficult during Ramadan, when demand for food typically rises.
“Many families are struggling to obtain essential goods,”
she said, noting that government food rations have been delayed for more than
two months.
The Strait of Hormuz, located between Iran and Oman, is one
of the world’s most important maritime corridors, through which a large share
of global oil shipments and regional trade passes. Any disruption or heightened
tension in the waterway can increase shipping costs, insurance premiums, and
transport times —factors that often translate into higher prices for imported
goods in countries heavily dependent on foreign supply.
Economic expert Hilal Al-Ta’an said the current price
increases in Iraq are partly linked to uncertainty surrounding shipping routes
in the Strait of Hormuz.
“Any disruption in the Strait raises transportation costs,”
he explained, noting that higher shipping and insurance costs eventually appear
in the prices of imported food products, placing additional pressure on
domestic markets.
Al-Ta’an suggested several measures that could help cushion
the impact, including diversifying import routes through the Red Sea and land
corridors, boosting domestic agricultural production, and strengthening
strategic food reserves. Ensuring the regular distribution of government food
rations and preventing hoarding and speculation would also help stabilize
markets, he added.
Economic expert Amena Al-Dhahabi pointed to deeper
structural challenges in Iraq’s economy, arguing that the country’s domestic
production remains limited and insufficient to meet internal demand.
“Iraq has long depended on financial resources to cover
imports instead of building sustainable production sectors,” she told Shafaq
News. “This has effectively turned the country into a consumer market for
neighboring economies.”
The Iraqi Ministry of Trade says it is working to limit the
impact of these developments on domestic markets. In an interview with our agency, Ministry spokesperson
Mohammed Hanoon affirmed that authorities are continuing to distribute
food basket supplies while strengthening strategic reserves of essential
commodities.
He said the ministry is coordinating with relevant agencies
to monitor markets and prevent price manipulation, while also supporting
smoother import flows and diversifying sources of supply to help stabilize
prices.
Read more: War fears drive panic buying across Iraqi markets
