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