The impact of the closure of the Strait of Hormuz has begun to affect the Kurdistan Region, with the cost of importing goods and materials rising sharply.

Import Costs Rise by 200%

Speaking to Channel8, Kamil Ahmed, an advisor in the Consultancy and Relations Department for Iraqi companies in China, said the closure of the Strait of Hormuz has increased import costs by 200%.

He explained that the cost of shipping a container from China, which previously stood at $2,500, has now risen to $9,000.

ASYCUDA Adds Pressure on Prices

Ahmed also identified the implementation of the ASYCUDA system as another major factor contributing to rising prices. He said the impact of the system in the Kurdistan Region is no less severe than the closure of the Strait of Hormuz, as it has significantly increased transportation costs.

He noted that transporting a carton of goods from Sulaymaniyah or Erbil to Kirkuk previously cost 1,000 Iraqi dinars, but the same shipment now costs 20,000 dinars per carton.

Alternative Import Routes

Ahmed added that importers from China and other countries are now relying on alternative routes instead of the Strait of Hormuz, using Jordan’s Port of Aqaba and Turkey’s Port of Mersin to bring goods into the region.