War fears drive panic buying across Iraqi markets
Shafaq News
Iraqis are increasingly stockpiling food, medicine, and fuel as regional tensions escalate following the United States and Israel’s military strikes on Iran on February 28, raising concerns about disrupted trade routes, supply chains, and economic stability across the country.
The surge in consumer demand comes as the region faces heightened military activity, including repeated drone and missile attacks launched by the Islamic Resistance in Iraq against US bases and facilities in Iraq and across the region, as well as cross-border strikes involving Iranian opposition groups and ongoing confrontations between Iranian, Israeli, and US forces.
In Baghdad’s markets, traders say fear rather than shortages is driving the rush to buy. Abu Ali, a food trader in the capital, told Shafaq News that the current surge reflects a combination of the traditional demand linked to Ramadan and the approaching Eid al-Fitr holiday, alongside anxiety triggered by the regional conflict.
“The psychological factor linked to the war is the main driver,” he explained, noting that many customers are purchasing quantities far exceeding their immediate needs despite the availability of goods and relatively stable prices.
Umm Alaa, a resident of Babil province, said Iraqis’ memories of the economic sanctions of the 1990s continue to shape public behavior during periods of uncertainty.
“The experience of sanctions made storing food and medicine a preventive instinct that people cannot easily abandon whenever political or economic instability emerges,” she said.
Economic analysts say the reaction reflects broader regional uncertainty. Economist Ahmed al-Janabi linked the surge in stockpiling to fears that the ongoing conflict could disrupt global trade routes, particularly after the tensions led to the closure of key maritime passages such as the Strait of Hormuz.
He also noted that rumors circulating on social media have amplified public anxiety, prompting many Iraqis to hoard supplies out of concern that traders may exploit the situation or that prolonged conflict could affect government salary payments.
According to al-Janabi, roughly 70 percent of Iraq’s consumer trade passes through Iran, making the Iraqi market particularly sensitive to any disruption in cross-border commerce.
Another economist, Mustafa al-Faraj, said excessive consumer behavior itself is contributing to market pressure, explaining that panic buying has disrupted supply patterns and allowed some traders to raise prices.
Al-Faraj added that the situation reflects a deeper issue of public trust in state institutions, even though the Iraqi government says sufficient reserves are available. The Ministry of Trade has stated that Iraq holds wheat reserves sufficient for a full year and basic food supplies for at least six months.
Concerns are not limited to Baghdad. In the southern city of Basra, business leaders warn that Iraq’s economy remains vulnerable to the fallout of any wider regional war.
Sabeeh al-Hashemi, head of the local Businessmen’s Union, told Shafaq News that the closure of the Strait of Hormuz and disruptions to maritime shipping have serious consequences for Iraq. “If the strait closes and ships stop arriving, it would represent a major negative development,” he said, adding that Iraq’s proximity to Iran means the country is directly and indirectly affected by the conflict.
Despite these concerns, al-Hashemi urged citizens to avoid excessive purchasing and limit buying to short-term needs, warning traders against exploiting the situation.
Read more: Hormuz lockdown: Iraq’s economic lifeline under threat
Earlier, Iraq’s Ministry of Trade said the country’s food supply remains stable and under control, emphasizing that there are no indicators of shortages despite the regional escalation following the U.-Israeli strikes on Iran. However, the ministry acknowledged that prices of several food commodities have risen in recent weeks across various Iraqi provinces.
The ministry also urged citizens not to follow rumors or engage in excessive purchasing, stressing that food supplies remain available in local markets and that the government is continuing efforts to stabilize prices and safeguard the country’s food security amid the regional conflict.
Ministry’s spokesperson, Mohammed Hanoun, told Shafaq News that the price increases are linked to a combination of regional and international factors affecting global supply chains and trade flows.
Hanoun said the ministry continues to monitor markets closely and is taking measures to mitigate price increases, including maintaining the distribution of subsidized food rations and strengthening strategic reserves.
Authorities are also coordinating with relevant institutions to monitor markets, prevent price manipulation, and ensure the smooth flow of imports while diversifying supply sources to maintain price stability.
Written and edited by Shafaq News staff.
