Iraq Sells 10M Oil Barrels At Discounted Prices
2026-10-25 Shafaq News- Washington/ Baghdad Iraq recently sold 10 million barrels of oil at discounts of $25 to $28 per barrel through its southern ports, Iraqi sources told the Washington-based energy platform Al-Taqa on Sunday. Indian companies purchased most of the shipments, which were loaded several days earlier, sources said.
Other sources confirmed that “Iraq had not sold any oil above $100 per barrel since the war involving Iran began, despite global prices reaching around $117 in Friday's trading session.”
A source at Iraq's State Oil Marketing Organization (SOMO) told Al-Taqa that the company had recently been unable to sell crude for more than $85 per barrel, although it sold some light crude shipments for around $90 a month earlier.
Separately, economic research group Eco Iraq said the country's crude oil exports totaled $37.39 billion from 533.46 million barrels shipped during the first nine months of 2026.
https://shafaq.com/en/Economy/Iraq-sells-10M-oil-barrels-at-discounted-prices
Border Restrictions Divert Iraq-Bound Trucks To Ilam’s Mehran
2026-10-25 Shafaq News- Ilam Truck traffic at Iran's Mehran border crossing with Iraq has increased as restrictions at neighboring crossings push more commercial vehicles toward the route, Ilam Customs Director General told Iranian Mehr News Agency.
Sohrab Kamari said customs authorities were working to handle the additional traffic by accelerating clearance procedures and facilitating exports to Iraq.
Earlier this week, Iraq closed the Al-Sheeb border crossing with Iran until further notice, without providing further details. Tehran criticized the move, accusing Baghdad of failing to give advance notice as required under a bilateral agreement.
Kamari told Iran's official news agency IRNA on September 24 that exports through Mehran reached $453 million over the past six months, totaling more than 1 million metric tons of goods, mainly destined for Iraq. The crossing connects Iran's Ilam province with Zurbatiyah in Iraq's Wasit province.
Read more: US pressure tightens the noose on Iran’s trade
https://shafaq.com/en/Economy/Border-restrictions-divert-Iraq-bound-trucks-to-Ilam-s-Mehran
Hormuz Shutdown Could Slash Iraq's Oil Revenues 80%
2026-10-25 15:00 Shafaq News- Baghdad A renewed closure of the Strait of Hormuz could slash Iraq's oil revenues by up to 80%, threatening government salaries, public services and the dinar, development and investment adviser Mohammed Al-Najjar warned, as economic experts called for reducing the country's dependence on oil.
Oil Prices and Hormuz Risks
Al-Najjar told Shafaq News that a prolonged conflict involving Iran could keep crude prices above $100 per barrel, potentially reaching $130. Higher prices would drive up fuel, food and travel costs without necessarily benefiting Iraq if exports, trade and investment remained disrupted.
A settlement, meanwhile, could bring oil prices down to around $74 per barrel and support a recovery in global growth in 2027. However, Al-Najjar warned that lower prices would also reduce Baghdad's revenue, estimating that Iraq needs oil at approximately $86 per barrel to balance its budget.
Declining oil revenue could strain government salaries and public services, while investor uncertainty could limit hiring, he said. Rising food and medicine prices would further burden households, particularly if regional disruptions affected Iranian gas supplies used to generate electricity in Iraq.
Finance Ministry figures showed that Iraq recorded a budget deficit of approximately $20.02 billion during the first eight months of 2026. Meanwhile, the International Monetary Fund (IMF) projected a 16% economic contraction this year, followed by 19% growth in 2027.
Read more: Classroom to street corner: Degree holders stranded in Iraq's job drought
Global Pressures And Economic Reforms
Iraqi economist Ahmed Abdul Rabbo warned that geopolitical tensions could slow global growth and increase energy, transportation and trade costs.
Arab economies face challenges involving inflation, investment and fiscal stability, he told Shafaq News, while Iraq must also contend with volatile oil revenues, high operating expenditure and risks to exports and the exchange rate.
Abdul Rabbo called for diversifying government revenue, strengthening the banking sector, expanding domestic production and building financial reserves to absorb external shocks.
Egyptian banking expert Tarek Ismail identified supply-chain disruptions and market uncertainty as major threats to the global economy, raising trade costs and complicating investment decisions and long-term planning.
Read more: Iran’s undersea cable threat raises risks for Iraq
However, Ismail argued that prolonged conflicts did not necessarily justify a pessimistic economic outlook, as much depended on how governments responded.
He warned that countries signing oil contracts at elevated prices in anticipation of further escalation could face costly commitments if tensions eased and prices subsequently fell.
For Iraq, Ismail called for a long-term shift away from dependence on public spending and oil revenues toward a more diversified, productive economy.
His proposals included attracting private and foreign investment, supporting small and medium-sized enterprises, developing artificial intelligence and digital infrastructure, and expanding technical education to meet future labor market needs.
He also advocated stronger economic integration among Arab countries and greater regional investment to generate employment, particularly for young people.
Al-Najjar, meanwhile, urged Baghdad to invest any temporary increase in oil revenue in sustainable projects, including alternative export routes, tighter spending controls, improved investment conditions, and measures to reduce security risks affecting economic activity.
Read more: Can Iraq’s economy weather a wider regional shock? Experts differ
https://shafaq.com/en/Economy/Hormuz-shutdown-could-slash-Iraq-s-oil-revenues-80
Oil Slips As Mediation Efforts Ease Middle East Tensions
2026-10-26 01:47 Shafaq News Oil prices fell on Monday after surging last week to near six-month highs, amid hopes of easing hostilities between the United States and Iran, although persistent attacks on key producer Saudi Arabia kept investors wary.
US West Texas Intermediate crude futures were down $2.23, or 2.16%, at $101.04 per barrel by 0426 GMT. Brent crude futures were down $2.21, or 1.89%, at $114.51.
On Friday, prices settled nearly $3 higher after Houthi attacks in Saudi Arabia stoked energy supply concerns. Brent finished the week up 6% and WTI ended 2.3% higher.
On Sunday, Qatari mediators traveled to Tehran as part of an effort to de-escalate regional tensions in coordination with the United States, an official briefed on the situation said.
"Concerns over renewed military hostilities in the Middle East, which drove much of last week’s crude rally, have eased this morning, but the reprieve may prove temporary," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
Hari said US President Donald Trump has not dispelled market expectations that strikes on Iran could still follow after the November 3 midterm elections.
"We therefore expect volatility to remain elevated, with risks still skewed to the upside," she added.
Despite the mediation talks, attacks continued over the weekend with the Iran-backed Houthis saying they struck an airport and oil facilities in Saudi Arabia on Saturday. Saudi Arabia said on Sunday it had intercepted more missiles and drones.
The effects of the US-Israeli war on Iran that began on February 28 continue to reverberate as companies adjust to the disruptions of commercial shipping through the key Strait of Hormuz and Bab el-Mandeb Strait caused by the conflict.
On Monday, the energy ministers from Saudi Arabia and Singapore said state-owned oil company Saudi Aramco will start storing crude oil in Singapore from the second half of 2027, to shore up the resilience of Aramco's supply chain in the region.
"While supply risks surrounding the Strait of Hormuz remain firmly entrenched, the current pullback appears more reflective of position adjustments and risk management rather than any meaningful improvement in the underlying supply situation," said Priyanka Sachdeva, head of market insight at Phillip Nova.
The head of the International Energy Agency, Fatih Birol, reinforced the concerns about the supply situation, saying on Monday at an industry event in Singapore that he does not expect energy markets in 2027 to return to where they were before the Iran war. (REUTERS) https://shafaq.com/en/Economy/Oil-slips-as-mediation-efforts-ease-Middle-East-tensions