Iraq faces June salary crisis as Strait of Hormuz tensions threaten oil revenues

Iraq's public servants and pensioners are at risk of delayed salary payments as tensions around the Strait of Hormuz threaten the country's oil-dependent economy, with a single maritime outlet serving the bulk of crude exports. Finance Minister Faleh al-Sari disclosed that the treasury holds only 3 trillion dinar against a monthly payroll obligation of 8 trillion dinar. The Health Minister separately stated that the government is facing a cash crunch and that the prime minister has yet to determine how liquidity will be secured. Long-stalled alternative pipeline projects through Turkey, Syria, Jordan and Saudi Arabia have failed to materialize due to political obstacles, leaving Iraq reliant on the Strait of Hormuz for its sole sea export route. Fiscal adviser Muzaheer Mohammed Salih warned that covering current expenditures through domestic borrowing would squeeze the private sector. Analysts have said that loss-making state-owned companies are draining the budget and that revenue sources must be diversified, though no further details were immediately available on the government's response to the looming shortfall.