Iraq is facing a severe crisis as it becomes the only country enduring military strikes from both sides in a regional war now nearing two weeks, threatening to drag the nation into a full-blown conflict The escalating violence has created a desperate situation for Baghdad, which has so far avoided the region's recent turmoil but is now at the center of the crossfire
The most immediate threat to Iraq's stability is economic. The conflict has disrupted Gulf shipping and led to attacks on oil infrastructure, bringing the nation's exports to a near standstill As Iraq relies on oil revenue for the bulk of its state budget, the shutdown poses a critical danger. Two Iraqi Kurdish officials warned that Baghdad could be unable to meet its large public-sector payroll as soon as next month, a scenario that risks sparking widespread social unrest
In an attempt to mitigate the economic fallout, the federal government has appealed to the autonomous northern Kurdish region to resume exports via a pipeline to Turkey However, these talks remain deadlocked over longstanding domestic issues, compounding the pressure on the government as its primary source of income remains cut off
Mohsin Rana
