Iraq Economic News and Points To Ponder Monday Afternoon 6-1-26
Oil Surges Past $93 Following US-Iran Strikes
2026-06-01 Shafaq News Oil prices rose more than 2% on Monday after Iran and the U.S. traded strikes and Israel ordered troops to move further into Lebanon in the battle with the Tehran-backed Hezbollah militant group. U.S. crude futures rose $2.29 or 2.62% to $89.65 a barrel as of 0436 GMT. Brent futures rose $2.05 or 2.25% to $93.17 a barrel.
The stepped-up fighting, coming just after the U.S. hosted Israel-Lebanon peace talks in Washington on Friday, dimmed expectations that the U.S. and Iran could soon announce an extension to their ceasefire agreement, which had driven Brent and WTI to settle down 1.8% and 1.7%, respectively, on Friday.
The U.S. said on Sunday it conducted "self-defence strikes" on Iranian radar and drone control sites in Iran's Goruk and Qeshm Island over the weekend in what it said was a response to "aggressive" actions from Tehran.
Iran's elite Islamic Revolutionary Guard Corps said on Monday its aerospace force targeted an air base used in what it called a U.S. attack on a telecoms tower on Sirik Island.
U.S. President Donald Trump said on Friday that he would soon decide on a proposed deal to extend a ceasefire with Iran announced in early April, giving negotiators more time to seek a permanent end to the conflict and find a solution to the underlying dispute over Iran's nuclear programme.
Israel would be key to any such deal, and Iran has also said repeatedly that Hezbollah must be included. The U.S. has proposed a "gradual de-escalation" plan, under which Hezbollah would first stop attacks on Israel in exchange for Israel refraining from escalation in Beirut, a U.S. official said on Sunday.
Concerns are rising about mines in the Strait of Hormuz, a key oil and gas shipping lane, IG analyst Tony Sycamore said in a note. That could slow the process of reopening the strait and mean that relief comes more slowly for the oil market even after it is reopened.
"Even if an agreement is reached, it won't deliver a flood of supply," Sycamore said.
An Axios reporter said on X on Friday that Iran had dropped more mines in the strait earlier in the week, shortly after U.S. Defense Secretary Pete Hegseth said that attempts to lay more mines would be a violation of the ceasefire.
(REUTERS) https://www.shafaq.com/en/Economy/Oil-surges-past-93-following-US-Iran-strikes
ISX to pause trading for Eid Al-Ghadir holiday
2026-06-01 Shafaq News- Baghdad Trading on Iraq Stock Exchange (ISX) will be suspended next Thursday as the country observes Eid al-Ghadir* holiday, with market activity set to resume on June 7 after the break.
An official notice indicated that the exchange's decision follows a directive from the General Secretariat of the Council of Ministers, which designated June 4 as an official day off for the religious occasion.
The market operates five days a week, from Sunday through Thursday, and includes 104 listed Iraqi joint-stock companies across sectors such as banking, telecommunications, industry, agriculture, insurance, financial investment, tourism, hotels, and services.
*According to Shiite tradition, Eid al-Ghadir marks the occasion when the Prophet Muhammad appointed Imam Ali Bin Abi Taleb, regarded in Shiite Islam as the first Imam, as his successor at Ghadir Khumm.
https://www.shafaq.com/en/Economy/ISX-to-pause-trading-for-Eid-Al-Ghadir-holiday
Dollar Rises In Baghdad, Erbil Markets
2026-06-01 Shafaq News- Baghdad/ Erbil The US dollar opened Monday’s trading higher in Iraq, hovering around 154,000 dinars per 100 dollars.
According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 153,500 dinars per 100 dollars, up from the previous session’s 153,300 dinars.
In the Iraqi capital, exchange shops sold the dollar at 154,000 dinars and bought it at 153,000 dinars, while in Erbil, selling prices stood at 153,100 dinars and buying prices at 153,000 dinars.
https://www.shafaq.com/en/Economy/Dollar-rises-in-Baghdad-Erbil-markets-0
Gold Prices Fall In Baghdad And Erbil
2026-06-01 Shafaq News- Baghdad/ Erbil On Monday, gold prices declined in both Baghdad and Erbil markets, hovering around 972,000 IQD per mithqal, according to a Shafaq News market survey.
Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 972,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 968,000 IQD. The same gold had sold for 985,000 IQD on Sunday.
The selling price for 21-carat Iraqi gold stood at 942,000 IQD, with a buying price of 938,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 975,000 and 985,000 IQD, while Iraqi gold sold for between 945,000 and 955,000 IQD.
In Erbil, 22-carat gold was sold at 1,011,000 IQD per mithqal, 21-carat gold at 965,000 IQD, and 18-carat gold at 827,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-fall-in-Baghdad-and-Erbil-6-6
Iraq’s Umm Qasr Port Welcomes First Direct Shipment From China
2026-06-01 Shafaq News- Baghdad The first direct cargo vessel from China arrived at North Umm Qasr port in Basra, southern Iraq, marking the resumption of direct maritime shipments through the Strait of Hormuz, the General Company for Iraqi Ports reported on Monday.
The vessel, MV KSL XINYANG, carried industrial equipment and materials for the Iraqi oil sector, along with commercial goods. Total cargo volume reached 29,720 tons.
Farhan Al-Fartousi, Director General of the company, told Shafaq News that Iraqi ports continue to operate on regular schedules to maintain stable vessel traffic and cargo handling, noting that the vessel’s arrival reflects the ports’ capacity to sustain import flows despite recent regional disruptions.
The strategic waterway has remained largely restricted since February 28 following the US–Israel war on Iran, which disrupted energy flows and limited shipments across the region, prompting Gulf producers, including Iraq, to scale back exports. Baghdad, however, secured access to the passage after Iran granted “brotherly Iraq” an exemption from “any restrictions imposed on the Strait of Hormuz,” setting it apart from states Tehran considers hostile.
Read more: Iraq's oil lifeline blocked: Why the crisis runs deeper than Hormuz
https://www.shafaq.com/en/Economy/Iraq-s-Umm-Qasr-port-welcomes-first-direct-shipment-from-China
China’s Iraqi Oil Imports Crater To 60K Bpd In May 2026
2026-06-01 Shafaq News- Beijing/ Baghdad China’s imports of Iraqi crude oil fell sharply in May to 60,000 barrels per day (bpd), down from 790,000 bpd in February, Reuters reported on Monday.
Overall, China’s seaborne crude imports fell to 6.36 million bpd this month, the lowest level in nearly a decade, compared with 8.10 million bpd in April. The decline came as Chinese buyers scaled back purchases amid rising prices following escalating tensions in the Middle East, as well as supply disruptions linked to delayed shipments from several producers, including Iraq and Kuwait.
The Strait of Hormuz, a strategic waterway through which about 20% of global oil and liquefied natural gas supplies transit, has remained largely restricted since Feb. 28 after the US–Israel war on Iran, disrupting energy flows and limiting shipments across the region.
Iraq, OPEC’s second-largest oil producer, recorded no crude oil shipments to the United States last week, while its crude exports to India fell by around 84%. https://www.shafaq.com/en/Economy/China-s-Iraqi-oil-imports-crater-to-60K-bpd-in-May-2026
Mechanical Malfunction Hits MSC Container Ship Near Iraq’s Umm Qasr
2026-06-01 Shafaq News- Basra A large Mediterranean Shipping Company (MSC) container vessel suffered a mechanical failure in the Khor Abdullah waterway on Monday shortly after departing Umm Qasr North Port in Basra, southern Iraq, with 96 export containers onboard, a security source told Shafaq News.
Pressure buildup inside balance tank compartments 9 and 10 caused a technical explosion aboard the vessel after it left the port, with no indications of sabotage or any other external factor.