Coronavirus Pushes Some Iraqis Into Poverty

Iraqi Muslims perform Ramadan prayers at a store, after the Iraqi government ordered all mosques to stay closed, following the outbreak of the coronavirus disease (COVID-19), during the holy fasting month of Ramadan, in Baghdad's Adhamiya district, Iraq April 26, 2020. REUTERS/Thaier Al-Sudani
Iraqi Muslims perform Ramadan prayers at a store, after the Iraqi government ordered all mosques to stay closed, following the outbreak of the coronavirus disease (COVID-19), during the holy fasting month of Ramadan, in Baghdad's Adhamiya district, Iraq April 26, 2020. REUTERS/Thaier Al-Sudani
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Coronavirus Pushes Some Iraqis Into Poverty

Iraqi Muslims perform Ramadan prayers at a store, after the Iraqi government ordered all mosques to stay closed, following the outbreak of the coronavirus disease (COVID-19), during the holy fasting month of Ramadan, in Baghdad's Adhamiya district, Iraq April 26, 2020. REUTERS/Thaier Al-Sudani
Iraqi Muslims perform Ramadan prayers at a store, after the Iraqi government ordered all mosques to stay closed, following the outbreak of the coronavirus disease (COVID-19), during the holy fasting month of Ramadan, in Baghdad's Adhamiya district, Iraq April 26, 2020. REUTERS/Thaier Al-Sudani

When shops and homes shutter at curfew, some Iraqis in this Baghdad district say it reminds them of past traumas that destroyed lives and livelihoods: sectarian death squads, foreign invasion, and the ruin wrought by international sanctions.

The COVID-19 pandemic is the source of their current suffering. In interviews with Reuters, half a dozen people in the Adhamiya neighborhood said it has driven their families into the worst poverty they can remember.

"For two years I squatted at a friend's to save rent and sent all my earnings - maybe $350 a month - to my sick wife and children in Turkey," said Abdul Wahhab Qassim, a 46-year-old day laborer. "Since the coronavirus lockdown there's no work. I can offer my family nothing."

Qassim says he and a growing number of neighbors who do casual labor or run small stores have watched their modest incomes evaporate. They collect evening meals donated by a family at the local mosque during the holy month of Ramadan, often accepting this charity for the first time.

"It took less than two months of curfew for many to lose work," Qassim said.

Iraq has so far avoided a catastrophic spread of the new coronavirus, recording some 2,200 cases and less than 100 deaths, according to the health ministry.

But as in many countries, the measures required, including a nationwide curfew in place since March, have put stores out of business and left breadwinners idling at home, hitting vulnerable sections of the population hard.

A spokesman for Iraq's planning ministry, Abdul Zahra al-Hindawi, said 20 percent of the population currently lives in poverty and that is expected to rise to nearly 30 percent this year because of people put out of work by the crisis.

The government last month announced a $25 monthly stipend for households struggling for income without state wages.

Hindawi said 13 million people, almost a third of Iraqis, applied for the aid.

Plummeting prices for oil, which accounts for almost all Iraq's revenue, are already squeezing the economy, forcing the government to mull cuts to its vast public sector payroll. The price of oil has fallen more than 55% since the year began.

Iraq faces the same dilemma as much of the world – whether to ease restrictions to help economic activity, or maintain a lockdown to avoid the virus's spread.

Authorities recently lifted the curfew during the daytime but announced new fines for breaking it at night. The World Health Organization says Iraq should maintain a lockdown.

To get their free evening meals, Qassim and his neighbors say they skirt the curfew. With the mosque closed, they gather to pray, shake hands and break the Ramadan fast at a shopfront each night. Men eat from large plastic trays. Women collect polystyrene boxes of rice and chicken to take home.

Ikhlas Majeed, who cooks the food in her small kitchen, said there are more families in need than ever.

"These people have no state income. They earn what they can make in a day running stores or doing laboring. Because of past conflict there are many households without men who have no income," she said.

Israa Khalil, whose two brothers were killed in 2006 and whose husband died of a throat infection several years ago, supported her two children with money from a state fund paid to her mother. But her mother died in March and that compensation is no longer paid.

"As a widow, I can't go out looking for jobs," she said. She said she now owes money to local stores including the grocer, who said he makes a quarter of what he did before coronavirus.

Hindawi said the planning ministry was undertaking a study to measure the number of Iraqis who had lost work or fallen into poverty. A government spokesman could not be reached for further comment on the economic crisis.



A Week Into the Fragile Israel-Iran Peace Agreement, Here's What We Still Don't Know

People attend the funeral procession of Iranian military commanders, nuclear scientists and others killed in Israeli strikes, in Tehran, Iran, June 28, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
People attend the funeral procession of Iranian military commanders, nuclear scientists and others killed in Israeli strikes, in Tehran, Iran, June 28, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
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A Week Into the Fragile Israel-Iran Peace Agreement, Here's What We Still Don't Know

People attend the funeral procession of Iranian military commanders, nuclear scientists and others killed in Israeli strikes, in Tehran, Iran, June 28, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
People attend the funeral procession of Iranian military commanders, nuclear scientists and others killed in Israeli strikes, in Tehran, Iran, June 28, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS

It's been a week since the United States pressed Israel and Iran into a truce, ending a bloody, 12-day conflict that had set the Middle East and globe on edge.

The fragile peace, brokered by the US the day after it dropped 30,000-pound "bunker-busting" bombs on three of Iran's key nuclear sites, is holding. But much remains unsettled, The Associated Press reported.

How badly Iran’s nuclear program was set back remains murky. The prospects of renewed US-Iran peace talks are up in the air. And whether US President Donald Trump can leverage the moment to get Israeli Prime Minister Benjamin Netanyahu 's government and Hamas focused on a ceasefire and hostage deal that brings about an end to the 20-month war in Gaza remains an open question.

Here is a look at what we still don't know:

How far Iran's nuclear program has been set back Trump says three targets hit by American strikes were “obliterated.” His defense secretary said they were “destroyed.”

A preliminary report issued by the US Defense Intelligence Agency, meanwhile, said the strikes did significant damage to the Fordo, Natanz and Isfahan sites, but did not totally destroy the facilities.

Rafael Grossi, head of the International Atomic Energy Agency, said on CBS’ “Face the Nation” on Sunday that the three Iranian sites with “capabilities in terms of treatment, conversion and enrichment of uranium have been destroyed to an important degree.” But, he added, “some is still standing” and that because capabilities remain, “if they so wish, they will be able to start doing this again.” He said assessing the full damage comes down to Iran allowing inspectors access.

What future US-Iran relations might look like

After the ceasefire deal came together, Trump spoke of potentially easing decades of biting sanctions on Tehran and predicted that Iran could become a “great trading nation” if it pulled back once-and-for-all from its nuclear program.

The talk of harmony didn't last long.

Ali Khamenei, in his first public appearance after the ceasefire was announced, claimed Tehran had delivered a “slap to America’s face." Trump responded by suggesting the supreme leader own up to the fact Iran “got beat to hell. The president also said he was backing off reviewing any immediate sanction relief, because of Khamenei's heated comments.

White House officials say the US and Iran are already in early discussions about resuming negotiations that had ended after Israel began launching strikes. But Iranian Foreign Minister Abbas Araghchi says there's no agreement in place to restart talks.

It's unclear if Iran's leadership is ready to come to the table so soon after the fighting has ended — especially if Trump holds to the position that Iran must give up nuclear enrichment for even civilian use. And Trump has offered conflicting statements about his commitment to talks. “We may sign an agreement,” he said Wednesday at a NATO summit press conference. He added, “I don’t think it’s that necessary.”

What role Iran's supreme leader will play

Khamenei's age and recent diminished appearance have raised questions about the scope of his involvement in US-Iran relations and Iran's response to both American and Israeli strikes. But despite having spent the last few weeks in a bunker as threats to his life escalated, there is little indication that Khamenei does not still reign supreme over the country's massive military and governmental operations.

Khamenei has ruled three times longer than his predecessor, the late Ruhollah Khomeini, and has shaped life for the country's more than 90 million people perhaps even more dramatically.

He entrenched the system of rule by the “mullahs,” or Shiite Muslim clerics. That secured his place in the eyes of hard-liners as the unquestionable authority, below only that of God. At the same time, Khamenei built the paramilitary Revolutionary Guard into the dominant force in Iran’s military and internal politics.

How Iran might strike back Iran's retaliatory missile attacks on a US base in Qatar following the American bombardment were sloughed off by the White House as a half-hearted, face-saving measure. The US was forewarned and the salvos were easily fended off.

Yet Iran remains a persistent threat, particularly via cyberwarfare. Hackers backing Tehran have already targeted US banks, defense contractors and oil industry companies — but so far have not caused widespread disruptions to critical infrastructure or the economy.

The US Department of Homeland Security last week issued a public bulletin warning of increased Iranian cyber threats. And the US Cybersecurity and Infrastructure Security Agency, is urging organizations that operate critical infrastructure like water systems, pipelines or power plants to stay vigilant.

Whether the Israel-Iran ceasefire will hold It remains a fragile peace.

Immediately following the US strikes, Trump got on the phone with Netanyahu and told the Israeli leader not to expect further US offensive military action, according to a senior White House official who was not authorized to comment publicly about the sensitive diplomatic talks.

But even as he agreed to deal, Netanyahu made clear that Israel will strike again “if anyone in Iran tries to revive this project.”

The ceasefire deal came without any agreement from Tehran on dismantling its nuclear program. Khamenei claims the attacks “did nothing significant” to Iran's nuclear facilities.

Trump expressed confidence that Iran, at the moment, has no interest in getting its nuclear program back up. “The last thing they’re thinking about right now is enriched uranium,” Trump said.

Still, Trump says he expects Iran to open itself to international inspection to verify that it doesn’t restart its nuclear program by the International Atomic Energy Agency, the UN nuclear watchdog, or some other organization "that we respect, including ourselves.”

Whether Trump can now press Netanyahu on Gaza

The president took a big gamble with his decision to order strikes on Iran's nuclear fortress.

As a candidate, he promised to quickly end Russia's brutal war in Ukraine and the Israel-Hamas conflict in Gaza, but has failed to find a resolution to either. He also vowed to keep the US military out of foreign conflicts.

But after helping Israel with US strikes on Iran, Trump — in conversations with Netanyahu and other world leaders in recent days — has made clear he wants a deal completed soon, according to two people familiar with the private discussions and were not authorized to comment publicly.

On Friday, Trump told reporters, “We think within the next week we’re going to get a ceasefire.”

Trump didn't offer any further explanation for his optimism. But Israeli Minister for Strategic Affairs Ron Dermer is expected to be in Washington this week for talks on a Gaza ceasefire, Iran and other matters, according to an official familiar with the matter. The official spoke on condition of anonymity because they were not authorized to speak to the media.