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.

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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.

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