Iraq’s Ministry of Planning said inflation pressures eased in most months of 2025, with price declines recorded more frequently than increases across the country, including the Kurdistan Region.
Ministry spokesperson Abdul Zahra Al-Hindawi said data compiled by statistical teams showed inflation fell in seven months during the year. The steepest monthly increase came in August, when inflation rose by 0.8%, while the sharpest decline was recorded in June, with a drop of 1.2%.
The consumer basket monitored by the ministry covers 333 goods and services, representing about 88% of total household spending. These items are divided into 12 main expenditure groups, including food and beverages, and housing.
On an annual basis, compared with 2024, inflation followed a shifting pattern throughout the year. Prices increased during the first five months of 2025, peaking in January with an annual rise of 2.3%. From June onward, annual inflation turned negative and continued to decline through the final months of the year.
Iraq’s annual inflation rate stood at 2.6% in 2024, down from 4.4% in 2023 and 5% in 2022, according to recent figures released by the International Monetary Fund (IMF).
IRAQ OFFICIALLY ADMITS FINANCIAL CRISIS: EXCHANGE RATE PRESSURES, POLITICAL PARALYSIS, AND ECONOMIC RISKS AHEAD
Introduction: What Iraq Is Now Admitting Publicly
After months of denial, political deflection, and optimistic rhetoric, Iraq has officially acknowledged that it is facing a financial crisis.
This admission is not symbolic — it confirms what economists, citizens, and observers have been warning about for months. The most alarming signal is that government salaries are now identified as the most vulnerable pressure point, exposing the depth of the problem.
This is no longer speculation. It is now government-confirmed reality.
Official Acknowledgment of the Financial Crisis
Salary Pressures Reveal the True Scale of the Problem
When a government admits that salary payments are at risk, it signals a liquidity stress issue, not just a budgeting delay.
A background look at the forces, weapons systems, and defenses shaping the current standoff.
Israel’s decision to ban photography during its June 2025 war with Iran reflected the scale of damage caused by Iranian ballistic missiles that struck targets across multiple Israeli cities. A similar ban imposed by Iranian authorities aimed to conceal damage to nuclear facilities and other sites hit in cities and surrounding areas.
Attention has now shifted back to the possibility of renewed confrontation, with the United States emerging at the forefront of a potential conflict with Iran, while Israel positions itself behind Washington in an effort to steer the crisis toward a military option rather than negotiations. Israeli media have quoted Prime Minister Benjamin Netanyahu as saying that talks with Iran would not produce meaningful results.
As both sides increase military preparations, focus has turned to the capabilities of the potential adversaries: the United States and Israel on one side, and Iran on the other. Recent US military deployments are among the largest seen in the region, with Washington raising readiness levels at its bases near Iran and deploying aircraft carriers equipped with advanced offensive and defensive systems.
US Military Posture
The US Central Command (CENTCOM) has announced that the USS Abraham Lincoln aircraft carrier strike group is currently operating in the Middle East “to enhance regional security and stability.” Military analysts often describe the carrier as a floating airbase.
The strike group includes the aircraft carrier Abraham Lincoln and three guided-missile destroyers: USS Frank E. Petersen, Jr., USS Spruance, and USS Michael Murphy. According to CBS, the carrier hosts squadrons of F/A-18E/F Super Hornets, EA-18G Growler electronic warfare aircraft, fifth-generation F-35C stealth fighters, and MH-60R/S helicopters.
In addition to the carrier group, Washington has deployed squadrons of F-15 fighter jets and C-17 transport aircraft carrying heavy equipment to the region.
A single Arleigh Burke-class destroyer, such as USS Frank E. Petersen, Jr., is capable of launching Tomahawk cruise missile strikes against Iranian targets and providing air defense for the carrier group through the Aegis combat system. The Arleigh Burke class is considered among the most advanced in the US Navy and is equipped with the Aegis system, designed to integrate sensors to counter anti-ship missile threats, according to Naval Technology.
The Aegis system can intercept ballistic missiles using SM-3 interceptors. The destroyers are also armed with up to 56 Tomahawk cruise missiles, including land-attack and anti-ship variants guided by inertial navigation.
EA-18G Growler aircraft are designed to conduct electronic warfare missions, including jamming enemy air defense systems. Similar capabilities were previously employed by the United States during operations targeting Venezuelan air defenses.
Iran’s Capabilities
On the Iranian side, ballistic missiles are viewed as the most influential element of its military arsenal. Leaked footage from previous confrontations showed missiles striking key administrative centers in Tel Aviv and the economic hub of Haifa.
According to the Office of the US Director of National Intelligence, Iran possesses the largest stockpile of ballistic missiles in the Middle East.
Statements and videos released by Iran’s Islamic Revolutionary Guard Corps (IRGC) over time indicate that Iran operates multiple missile sites in and around Tehran, as well as at least five known underground “missile cities” across several regions, including Kermanshah, Semnan, and areas near the Gulf.
Iran’s ballistic missile inventory includes several systems with varying ranges, such as the Sejjil missile with a range of 2,000 kilometers, Emad with a range of 1,700 kilometers, Kadr with a range of 2,000 kilometers, Shahab-3 with a range of 1,300 kilometers, Khorramshahr with a range of 2,000 kilometers, and Hoveyzeh with a range of 1,350 kilometers.
In April 2025, Iran’s semi-official Student News Agency (ISNA) published a graphic showing nine Iranian missiles it said were capable of reaching Israel. These included a hypersonic Sejjil missile, which the agency said can fly at speeds exceeding 17,000 kilometers per hour with a range of 2,500 kilometers, the Kheibar missile with a range of 2,000 kilometers, and the Haj Qassem missile with a range of 1,400 kilometers.
Iranian officials have emphasized that these missile capabilities allow Tehran to target US military bases across the region, including in Qatar, Saudi Arabia, Turkiye, the United Arab Emirates, and Bahrain.
In June 2023, Iran announced that it had developed its first domestically produced hypersonic ballistic missile. Hypersonic missiles travel at least five times the speed of sound and follow complex trajectories, making them difficult to intercept.
Iran has not indicated whether it would accept negotiations over its ballistic missile program. The issue remains a core concern for both the United States and Israel, which argue that limiting Iran’s missile capabilities is essential to any agreement. Iranian officials, however, have repeatedly described the missile program as a “red line,” insisting that negotiations should be confined to the nuclear file.
Tehran has used ballistic missiles in several operations, including a strike on the US Al Udeid Air Base in Qatar. In January 2024, the IRGC said it targeted an Israeli intelligence facility in the Kurdistan Region of Iraq, as well as Islamic State (ISIS) positions in Syria. Iran has also launched ballistic missiles at two bases belonging to an armed group inside Pakistani territory.
Saudi Arabia and the United States accused Iran in 2019 of carrying out a drone and cruise missile attack on facilities operated by Saudi Aramco. Tehran denied responsibility.
One of the most significant Iranian missile attacks against US forces occurred in 2020, when Iran struck the Ain al-Asad Air Base in western Iraq in response to the US assassination of Qassem Soleimani, commander of the IRGC’s Quds Force, in Baghdad.
Despite Iran’s promotion of advanced air defense systems such as Khordad-15, Bavar-373, and Sevom Khordad, previous rounds of fighting showed that these systems, including Russian-supplied S-300PMU batteries, failed to prevent US and Israeli air strikes.
Israel’s Air and Missile Defenses
Israel’s primary military advantage lies in its air force, which is widely regarded as among the most capable globally. It is centered on squadrons of F-35, F-15, and F-16 fighter jets and has played a central role in Israel’s military campaigns across the region over the past two years.
Israel also relies heavily on its missile defense network, which intercepted a portion of Iranian missiles during the last conflict, though the systems showed signs of strain. The network is designed to counter Iranian drones, including the Shahed series, which fly at speeds of about 185 kilometers per hour, with ranges exceeding 2,500 kilometers and payloads of 30 to 50 kilograms of explosives.
Israel’s missile defense architecture consists of four operational layers, with an additional laser-based interception system announced but not yet used in combat. The existing systems include Iron Dome, which intercepts short-range rockets with ranges between four and 70 kilometers; David’s Sling, designed to counter medium-range threats between three and 400 kilometers; and Arrow-3, intended to intercept long-range and hypersonic missiles at distances of up to 2,300 kilometers.
The United States, which Israel depends on for logistics and intelligence, has also deployed the Terminal High Altitude Area Defense (THAAD) system to support Israel’s defenses against missiles with ranges exceeding 3,000 kilometers.
Unused Capabilities
If a new war were to break out, it could involve weapons not previously used by all sides. Iran has yet to employ its naval forces deployed along the Persian Gulf, the Gulf of Oman, the Strait of Hormuz, and the port of Bandar Abbas. According to Global Firepower, Iran’s navy ranks 37th globally.
Iran typically launches ballistic missiles at night, citing operational mobility and the technical requirements of liquid-fuel missiles. Night launches also reduce exposure to satellite surveillance, which has played a key role in US and Israeli monitoring of Iranian military movements and has assisted Israeli air operations in targeting parts of Iran’s missile infrastructure.
Introduction: The Political Deadlock Was Never What It Seemed
For months, the delay in electing Iraq’s new president was presented as a constitutional or procedural crisis. But in reality, this so-called “crisis” was nothing more than a political coverup — a strategic pause while Iraq’s political blocs worked through one critical issue: the Nori al-Maliki nomination problem.
Now, that long struggle appears to be reaching its conclusion.
Multiple indicators strongly suggest that Nori al-Maliki is close to officially announcing his withdrawal, clearing the path for Iraq’s stalled election process to resume. Once this final obstacle is removed, the political machinery can move forward rapidly — including the announcement and confirmation of a new president.
The Truth Behind the Delayed Presidential Election
Picking a President Was Never the Real Crisis
Contrary to mainstream narratives, selecting a new president was not the true issue. The delay was intentional.
The real objective was to prevent Maliki’s nomination from advancing, while political actors — particularly Kurdistan — repositioned themselves behind the scenes.
Once Maliki conceded his nomination, the excuse for delaying the process disappeared. This is why, almost immediately after these developments, we see renewed momentum toward announcing the president and resuming parliamentary sessions.
Maliki’s withdrawal is not a minor political footnote. It is the single most important trigger that allows:
The presidential election to move forward
Parliamentary sessions to resume
Government formation to accelerate
Long-delayed political agreements to surface
In short, nothing moves forward without Maliki stepping aside — and now that moment appears imminent.
Kurdistan’s Strategic Move Explained
Why Kurdistan Was Waiting
My sincere belief — not opinion, but analysis based on political behavior — is that Kurdistan was waiting for this exact announcement before revealing their presidential nominee.
Kurdistan would not have publicly announced Fuad Hussein as their candidate unless they were already confident that Maliki was out of the equation.
This stalling tactic was deliberate.
The delay in electing the president was a calculated political maneuver designed to:
Pause the process
Reassess the power balance
Prevent Maliki’s advancement
Control the timing of the next political step
Once Maliki’s withdrawal became inevitable, Kurdistan moved decisively.
What Happens Next: Timeline Expectations
New Parliamentary Session Expected Soon
Expectations are now that a new parliamentary session to elect the president will be held early next week
.
With Maliki stepping aside:
Political resistance dissolves
Legal and constitutional excuses disappear
Momentum returns almost instantly
This is why events may suddenly appear to move very fast after months of stagnation.
Featured Snippet: Key Takeaway
Maliki’s withdrawal is the real reason Iraq’s presidential election can now proceed, ending months of deliberate political stalling and unlocking the next phase of government formation.
Q&A: What Readers Are Asking
Q: Why was the presidential election delayed for so long?
A: The delay was strategic, not procedural. It was used to stall Maliki’s nomination while political blocs repositioned.
Q: Is Maliki officially out?
A: Indicators strongly suggest he is close to announcing his withdrawal, which is the final barrier to progress.
Q: Why did Kurdistan wait to announce Fuad Hussein?
A: Kurdistan would not risk announcing their nominee unless they were confident Maliki was no longer a threat.
Q: What happens after the president is elected?
A: Government formation accelerates, stalled agreements resurface, and political normalization resumes.
Why This Moment Matters More Than Headlines Suggest
This is not just another political reshuffle. This is the end of the long struggle that has defined Iraq’s recent instability.
When Maliki steps aside, it signals:
The collapse of a prolonged power play
A reset of political momentum
A return to constitutional progress
Those watching closely understand: this moment has been engineered for months.
Final Thoughts from Mnt Goat’s Perspective
Political theater often disguises real intent. The delay in Iraq’s election process was never about confusion — it was about control.
Now that Maliki is effectively out, the stage is finally clear.
And when the curtain lifts, events will unfold far more rapidly than most expect.
Article: "THE END OF THE “LONG STRUGGLE”… MALIKI IS CLOSE TO ANNOUNCING HIS WITHDRAWAL..."
...Picking the new president was not the crisis it was a coverup while they sorted out this Nori al-Maliki nominee mess...Now that he has conceded his nomination...the new president is announced to us. Thus they can now move ahead with the election process again.
Article: “THE END OF THE “LONG STRUGGLE” … MALIKI IS CLOSE TO ANNOUNCING HIS WITHDRAWAL EXPECTATIONS ARE THAT A NEW SESSION TO ELECT THE “PRESIDENT” WILL BE HELD EARLY NEXT WEEK.”
My sincere belief, not opinion, is that this announcement is what Kurdistan was waiting for in order to announce their nominee for the presidency. Kurdistan would not have just announced their candidate Fuad Hussein, if they didn’t know that Maliki was out...this was the sole reason for the stalling in the election process in the first place as a delay in picking the president was just a reason to stall. In other words, a political maneuver by the Kurds to stall the process in order to take a step back and keep the next step from happening, which would have been Maliki’s nomination.