BAGHDAD — Saadi Abdul-Rahman was recently forced to pull his three children out of school in the Iraqi city of Mosul, where Islamic State militants have ruled with an iron fist since June. The cost of living has soared there,
BAGHDAD — Saadi Abdul-Rahman was recently forced to pull his three children out of school in the Iraqi city of Mosul, where Islamic State militants have ruled with an iron fist since June. The cost of living has soared there, and the family is barely able to make ends meet, even after putting the kids to work.
“We are not able to pay for cooking gas, kerosene and food,” laments the 56-year-old retired government worker. “The situation in Mosul is miserable.”
The economy in the self-styled “caliphate” declared by the Islamic State group bridging Iraq and Syria is starting to show signs of strain. Prices of most staples have more than doubled as coalition airstrikes make it difficult for products to move in and out of militant strongholds, leading to shortages, price-gouging and the creation of black markets.
Resentment has grown among residents under the rule of the extremists, who initially won support with their ability to deliver services.
In the early days of its rule, the Islamic State group subsidized food and gas prices through the wealth it accumulated from oil smuggling, extortion and ransom demands. They sold their smuggled oil at a discount— $25 to $60 a barrel for oil that normally cost $100 a barrel or more, according to analysts and government officials.
