Strait of Hormuz closure stifles Iraqi e-commerce

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2026-04-02T07:57:15+00:00

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Shafaq News

The closure of the Strait of Hormuz
has slowed e-commerce across Iraq, prolonging delivery times, raising costs,
and forcing a growing number of customers to cancel online orders.

Shadha Abdul Karim, who operates an
online store through social media, described mounting shipping setbacks
affecting orders routed via the Strait, leading to widespread cancellations.

“Customers are entitled to cancel
and receive full refunds if orders are not delivered on time,” she informed
Shafaq News, adding that higher shipping costs under current conditions are likely
to erode profits, while noting that she had kept prices low to attract buyers.

“I regret that not all customers
received their orders on time, but this was beyond my control. I contacted
affected clients to explain the hold-ups caused by the exceptional situation,”
she explained.

Similar concerns are being reported
by other sellers. Hala Hamid, another online retailer, pointed to the broader
impact on supply chains, particularly imports from global platforms such as
China’s Shein.

“The closure has led to noticeable
delays in shipments due to disruptions in some sea and air routes, as well as
higher transport costs, which in turn affected delivery schedules,” she noted.

Read more: Iraq’s energy vulnerability: When a petro-state has no buffer

Economists indicate that the
fallout extends beyond logistics. The Strait of Hormuz, a key passage for
global energy flows, plays a central role in shaping shipping costs, inflation,
and trade patterns worldwide.

Economic expert Mustafa Al-Faraj
noted that e-commerce depends heavily on speed and affordability, making it
particularly sensitive to disruptions in major shipping routes.

“Higher oil prices immediately
increase shipping and transport costs, whether by sea or air, which raises the
prices of goods sold online and reduces consumers’ purchasing power,” he
relayed to Shafaq News, adding that disruptions in supply chains from Asia,
especially China and India, are likely to slow delivery times, weakening a key
advantage of online shopping.

Al-Faraj also pointed out that
major e-commerce companies may scale back promotions or transfer higher costs
to consumers, with emerging markets like Iraq feeling the effects more sharply
due to heavy reliance on imports.

In parallel, economic expert Ali
Dadoush pointed to a wider chain reaction tied to currency stability and
financial flows. “Any disruption in maritime traffic through the strait will
increase shipping costs and prolong delivery timelines, which directly affects
online markets through higher prices, reduced product variety, and longer
delivery times,” he explained to Shafaq News.

He added that declining oil
revenues could pressure exchange rates and limit dollar liquidity, increasing
import costs and weakening purchasing power. Stricter controls on foreign
transfers could also disrupt digital payments, potentially reducing online
transactions and pushing some consumers back toward cash.

“The overall impact points to
stagflation, with a contraction in e-commerce volumes alongside rising prices
and declining consumer confidence,” he concluded, noting that while limited
opportunities may emerge for local e-commerce growth, they are unlikely to
offset short-term pressures without broader policy support.

Written and edited by Shafaq News
staff.

Read more: Hormuz lockdown: Iraq’s economic lifeline under threat


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