Despite Oil Wealth, Poverty Fuels Despair in South Iraq

From patchy supplies of water and electricity, to pockmarked roads and toxic pollution, Basra residents are struggling -- a job in the petroleum sector is the ultimate prize - AFP
From patchy supplies of water and electricity, to pockmarked roads and toxic pollution, Basra residents are struggling -- a job in the petroleum sector is the ultimate prize - AFP
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Despite Oil Wealth, Poverty Fuels Despair in South Iraq

From patchy supplies of water and electricity, to pockmarked roads and toxic pollution, Basra residents are struggling -- a job in the petroleum sector is the ultimate prize - AFP
From patchy supplies of water and electricity, to pockmarked roads and toxic pollution, Basra residents are struggling -- a job in the petroleum sector is the ultimate prize - AFP

In Iraq's southern province of Basra, the oil flows freely but little of the wealth trickles down to the people, and many struggle to make ends meet.

Sajad, 17, who lives in Basra city, says he "has no future" and no present. Like other young people, he says he just survives, a living emblem of the city's maladies.

Basra province produces about 70 percent of crude oil in Iraq, itself the second biggest exporter in the Middle East after Saudi Arabia.

Yet the province is hit especially hard by many of the problems plaguing Iraq, which is still seeking to recover from years of war and turmoil since the 2003 US-led invasion that toppled dictator Saddam Hussein.

Unemployment in Basra affects 20 to 25 percent of the people and almost 30 percent of youth, estimated Iraqi economist Barik Schuber in the absence of official figures.

This compares to a national rate of 13.7 percent, according to World Bank figures, AFP reported.

From patchy supplies of water and electricity, to pockmarked roads and toxic pollution caused by extracting hydrocarbons, Basra province and its four million inhabitants are struggling.

But what hits hardest is the despair of the young.

Gathered around their shisha pipes, Sajad and Jawad, both aged 16, are hard pressed to find anything to be optimistic about.

Sajad does not work, while Jawad said he toils for "eight to 13 hours in a restaurant for 7,000 dinars (about $4.80) per day".

"I don't see a future here, I want to go to Baghdad," said Sajad, sitting on the shores of the Shatt al-Arab waterway, where the Tigris and Euphrates rivers meet.

Some investments have been made, such as a new stadium under construction ahead of the Gulf Cup football tournament due to be held in Basra in January 2023.

But the deputy governor of Basra, Dorgham al-Ajwadi, conceded that "the people are angry".

He blamed the distant government in Baghdad for the inequitable distribution of the federal budget.

"In 2021, the Iraqi budget is about 130 trillion Iraqi dinars ($89 billion), but for Basra it's less than one trillion," he told AFP.

"It is maybe 0.7 percent of the total budget, while more than 108 trillion come from Basra."

For Basra resident Mortada, 27, it's not Baghdad that's to blame but rather the local authorities.

Before the pandemic, he ran an unregistered ice cream shop, he explained.

"Then the authorities shut down the illegal businesses, including mine," he said, requesting that his surname not be published to avoid problems "with certain people".

In Iraq's October 10 parliamentary elections, he voted for an independent candidate unaffiliated with the major parties because "I believe he can change things".

For many, the grievances run deeper.

Basra was a hotbed of massive protests in mid-2018, a precursor to the near-nationwide protests that rocked the country from October 2019.

Anger erupted in Basra over corruption, poor public services and, above all, the influence of neighboring Iran, whose local consulate was set ablaze.

Tehran has long exercised influence over Iraq through certain political parties, as well as factions of the Hashed al-Shaabi -- a former paramilitary umbrella organization that was folded into the Iraqi armed forces.

In Basra, some accuse "groups loyal to Tehran" of wielding harmful influence and of infiltrating the economic fabric.

One such critic refused to give his name, saying that "if it is published, I risk being killed".

Three years after the Basra demonstrations, little has changed, according to Mortada, who does odd jobs and dreams of working "for the state".

In Basra, more than in any other part of the country, a job in the petroleum sector is seen as the ultimate prize for its promise of stability and prosperity.

But according to Mac Skeleton, executive director of the Institute of Regional and International Studies based in Iraqi Kurdistan, jobs in Basra's petrol industry are handed out through nepotism.

"Each of the major Shiite majority parties are competing over the Basra oil company, they're competing over the security contracts in the oil fields, for different assets," he explained.

But "connections" are necessary for a way in, he said, adding that "at the end of the day there is a kind of limit to how many people can benefit from these different spheres of power".

Some people miss out despite having connections, said Sajad, whose uncle works at the oil ministry.

The young man complained that his elder relative had already "accommodated two people from his family" and therefore "cannot hire me".



IMF Board to Review Staff-level $8.1 Bln Agreement for Ukraine

The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
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IMF Board to Review Staff-level $8.1 Bln Agreement for Ukraine

The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko
The city's downtown on a frosty winter day, amid Russia's attack on Ukraine, in Kyiv, Ukraine February 19, 2026. REUTERS/Alina Smutko

The International Monetary Fund on Thursday said its board ​would review a staff-level agreement for a new $8.1 billion lending program for Ukraine in coming days.

IMF spokeswoman Jule Kozack told reporters that Ukrainian authorities had completed the prior actions needed to move forward with the request ⁠of a new ⁠IMF program, including submission of a draft law on the labor code and adoption of a budget.

She said Ukraine's economic growth in 2025 ⁠was likely under 2%. After four years of war, the country's economy had settled into a slower growth path with larger fiscal and current account balances, she said, noting that the IMF continues to monitor the situation closely.

"Russia's invasion continues to take a ⁠heavy ⁠toll on Ukraine's people and its economy," Kozack said. Intensified aerial attacks by Russia had damaged critical energy and logistics infrastructure, causing disruptions to economic activity, Reuters quoted her as saying.

As of January, she said, 5 million Ukrainian refugees remained in Europe and 3.7 million Ukrainians were displaced inside the country.


US Stocks Fall as Iran Angst Lifts Oil Prices

A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
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US Stocks Fall as Iran Angst Lifts Oil Prices

A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid
A screen displays a stock chart at a work station on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 6, 2022. REUTERS/Brendan McDermid

Wall Street stocks retreated early Thursday as worries over US-Iran tensions lifted oil prices while markets digested mixed results from Walmart.

US oil futures rose to a six-month high as Iran's atomic energy chief Mohammad Eslami said no country can deprive the Islamic republic of its right to nuclear enrichment, after US President Donald Trump again hinted at military action following talks in Geneva.

"We'd call this an undercurrent of concern that is bubbling up in oil prices," Briefing.com analyst Patrick O'Hare said of the "geopolitical angst."

About 10 minutes into trading, the Dow Jones Industrial Average was down 0.6 percent at 49,379.46, AFP reported.

The broad-based S&P 500 fell 0.5 percent to 6,849.35, while the tech-rich Nasdaq Composite Index declined 0.6 percent to 22,621.38.

Among individual companies, Walmart rose 1.7 percent after reporting solid results but offering forecasts that missed analyst expectations.

Shares of the retail giant initially fell, but pushed higher after Walmart executives talked up artificial intelligence investments on a conference call with analysts.

The US trade deficit in goods expanded to a new record in 2025, government data showed, despite sweeping tariffs that Trump imposed during his first year back in the White House.


Gold Advances on US–Iran Tensions as Markets Weigh Fed Policy Path

UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
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Gold Advances on US–Iran Tensions as Markets Weigh Fed Policy Path

UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
UK gold bars and gold Sovereign coins are displayed at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo

Gold prices extended gains on Thursday after rising more than 2% in the previous session, as lingering tensions between the United States and Iran prompted a flight to safety, while investors evaluated the Federal Reserve's monetary policy path.

Spot gold rose 0.2% to $4,989.09 per ounce by 1227 GMT. US gold futures for April delivery held steady at $5,008.60.

"Geopolitical concerns are front and centre with reports that, if the US were to take military action against Iran, it could go on for several weeks," said Jamie Dutta, market analyst at Nemo.money, Reuters reported.

Some progress was made during Iran talks this week in Geneva but distance remained on some issues, the White House said on Wednesday.

FED LARGELY UNITED

Top US national security advisers met in the White House Situation Room on Wednesday to discuss Iran and were told all US military forces deployed to the region should be in place by mid-March.

Meanwhile, the Fed's January minutes showed it largely united on holding interest rates steady, but divided over what comes next, with "several" open to rate hikes if inflation remains elevated, while others were inclined to support further cuts if inflation recedes.

The weekly jobless claims data, due later in the day, and Friday's Personal Consumption Expenditures report, the Fed’s preferred inflation gauge, will provide further clues on the central bank's policy trajectory.

Markets currently expect this year's first interest rate cut to be in June, according to CME's FedWatch Tool.

Non-yielding bullion tends to do well in low-interest-rate environments.

Spot silver rose 0.9% to $77.87 per ounce after climbing more than 5% on Wednesday.

Silver is "supported by tight supply and low COMEX stock levels ahead of the delivery period of the March contract. However, given the extent of the historic correction earlier this month, silver is not back on safer ground until it trades back above $86," said Ole Hansen, head of commodity strategy at Saxo Bank.

Spot platinum fell 0.6% to $2,059.55 per ounce, while palladium lost 1.7% to $1,686.47.