Iraq says public and pension salaries secured despite Strait of Hormuz crisis

BAGHDAD, Iraq — Iraq's government has the liquidity and fiscal tools to meet public-sector and pension obligations even amid disruptions to oil exports linked to the Strait of Hormuz crisis, Mazhar Mohammed Salih, the prime minister's financial and economic advisor, said. Salih noted that a prolonged Hormuz standoff would push Iraq toward alternative export routes and pipelines, including the Kirkuk–Ceyhan line, and that northwest-bound projects could carry additional volumes over time. He stressed that salary and pension payments do not depend solely on oil flows through the Strait, citing liquidity, non-oil revenues and spending reordering as supporting mechanisms. The Ministry of Finance has put total salary obligations at roughly 7.8 trillion dinars, with about 3.2 trillion dinars disbursed so far. Some ministries and public entities have waited more than 40 days for payments, while the government continues to manage fiscal pressure by prioritizing salaries and activating oil export alternatives.