Iraq Economic News and Points To Ponder Monday Afternoon 8-3-26

Sulfur Shortage Pushes Global Prices Up 134%

2026-08-02  Shafaq News- Baghdad  Sulfur prices surged 134% since the outbreak of the US-Iran war in February 28, driving up global food production costs due to sulfur's key role in fertilizer manufacturing, Bull Theory media outlet reported on Sunday.  The Strait of Hormuz is a vital route for global seaborne sulfur trade, handling about half of worldwide shipments.

During three and a half months of conflict, only 80,000 metric tons of sulfur passed through the strait, compared with 640,000 metric tons after a de-escalation agreement was reached, according to Reuters.

https://www.shafaq.com/en/Economy/Sulfur-shortage-pushes-global-prices-up-134

Oil Prices Drop On US-Iran Deal Talks

2026-08-03 Shafaq News  Oil prices tumbled more than $4 a barrel on Monday after U.S. President Donald Trump held off on a fresh attack on Iran, seeking to reach a quick deal that would halt Tehran's nuclear ambitions and reopen the Strait of Hormuz.

Brent crude futures slid $4.49, or 5.11%, to $83.44 by 0408 GMT while U.S. West Texas Intermediate crude was at $79.77 a barrel, down $4.90, or 5.79%.

Both contracts jumped ⁠more than 20% last month after fighting between the U.S. and Iran resumed and as attacks on several tankers around Oman heightened security concerns, deterring shippers from entering the Gulf to load oil.

In a sign of de-escalation, Trump said late on Saturday on his Truth Social platform that Iran and other Middle Eastern countries had asked for time to complete a deal that would lead to "the Immediate, Complete and Total" reopening of the vital strait and "an end to Iran's nuclear threat".

"The bigger focus is whether this week turns into a rinse and repeat of last week — with hopes ⁠of a deal collapsing as Iran digs in its heels and continues to leverage its control over the Strait, potentially through an attack on a U.S. base or a tanker transiting the waterway," IG market analyst Tony Sycamore said.

Two tankers laden with Saudi oil crossed the Bab el-Mandeb Strait out of the Red Sea over ⁠the weekend while traffic in the Strait of Hormuz slowed following reports of vessel attacks, shipping data showed on Monday.

The United Kingdom Maritime Trade Operations has reported three more tanker attacks since Saturday.

On Sunday, OPEC+ approved an oil production ⁠quota increase of around 188,000 barrels per day from September, the producer group said, in a move that completes the unwinding of a layer of voluntary output cuts.

Due to export disruptions ⁠from the Gulf, Russia and Kazakhstan caused by the Iran and Ukraine wars, successive monthly OPEC+ hikes over most of this year have remained largely on paper with little impact on the market.   (Reuters)

https://www.shafaq.com/en/Economy/Oil-prices-drop-on-US-Iran-deal-talks

Iraq’s Public Borrowing Climbs To $78B In May

2026-08-03 Shafaq News- Baghdad   Iraq’s domestic public debt rose above 103 trillion Iraqi dinars ($78.8B) by the end of May 2026, extending its upward trend from the previous month, according to data from the Central Bank of Iraq (CBI).

Domestic public debt reached 103.179 trillion dinars ($78.8B), up from 95.679 trillion dinars ($73.0B) at the end of April and 90.515 trillion dinars ($69.1B) at the close of 2025.

The total included 63.199 trillion dinars ($48.2B) in Ministry of Finance claims held by the CBI, 20.270 trillion dinars ($15.5B) in loans, 10.868 trillion dinars ($8.3B) in bonds, and 8.842 trillion dinars ($6.7B) in treasury bills, which remained unchanged from the previous month.

The data also showed a continued decline in Iraq’s external debt, which fell to $54.101B in 2025 from $54.601B in 2024 and $56.207B in 2023, marking a reduction of more than $2.1B over two years.

https://www.shafaq.com/en/Economy/Iraq-s-public-borrowing-climbs-to-78B-in-May

Dollar Slips In Erbil As Baghdad Exchanges Halt

2026-08-03 Shafaq News- Baghdad/ Erbil   The US dollar edged lower in Erbil as trading opened on Monday, while Baghdad's Al-Kifah and Al-Harithiya currency exchanges were closed due to the Arbaeen holiday.

According to Shafaq News market survey, some exchange shops in Baghdad sold the US dollar at 152,250 dinars per 100 dollars and bought it at 151,250 dinars.

In Erbil, the dollar sold for 152,100 dinars per 100 dollars and bought for 152,000 dinars.

The official exchange rate set by the Central Bank of Iraq stands at 132,000 dinars per 100 dollars.

https://www.shafaq.com/en/Economy/Dollar-slips-in-Erbil-as-Baghdad-exchanges-halt

Gold Trading Slows In Baghdad, Rises In Erbil

2026-08-03   Shafaq News- Baghdad/ Erbil   Gold trading was limited in Baghdad on Monday during the Arbaeen holiday, while 21-carat gold reached 869,000 Iraqi dinars per mithqal (about five grams) in Erbil, according to a Shafaq News survey.

In Baghdad gold shops that remained open, imported 21-carat gold from the Gulf ranged from 870,000 to 880,000 dinars per mithqal, while Iraqi gold traded between 840,000 and 850,000 dinars.

In Erbil, where markets operated normally, 22-carat gold sold for 910,000 dinars per mithqal, 21-carat gold for 869,000 dinars, and 18-carat gold for 745,000 dinars.

* Observed this year on Aug. 4, Arbaeen marks the 40th day after the martyrdom of Imam Hussein, the third Shia Imam and grandson of the Prophet Muhammad, and draws millions of Shiite Muslims to Karbala annually, making it one of the largest religious gatherings in the world. https://www.shafaq.com/en/Economy/Gold-trading-slows-in-Baghdad-rises-in-Erbil

New Najaf Depot Adds 3K M³ To Iraq LPG Storage

2026-08-03 Shafaq News- Najaf   Iraq on Monday began trial operations at a liquefied petroleum gas depot in Najaf province with 3,000 cubic meters of storage capacity, aiming to strengthen strategic reserves and stabilize supplies across central and other provinces.

Oil Ministry Undersecretary for Gas Affairs Izzat Saber Ismail explained that the depot will receive LPG through pipelines instead of tanker trucks, improving safety and supporting stable deliveries to production and service facilities.

The project is part of wider plans to expand Iraq’s LPG storage, transportation, and distribution network, with technical procedures for full operation expected to be completed “within days.”

The trial was completed successfully under approved technical and operating requirements, Director General of the State Company for Gas Filling and Services Anmar Ali Hussein said, adding that the company is developing additional depots across Iraq to increase storage capacity and meet rising demand.

Iraq produces about 4,500 tons of LPG per day against consumption of roughly 4,700 tons, while strategic reserves stand at around 50,000 tons, according to Oil Ministry figures. Nearly 95,000 vehicles across Iraq were operating on LPG by July, up from more than 70,000 in March, further increasing demand for storage and distribution infrastructure.

Read more: Iraq's energy vulnerability: When a petro-state has no buffer

https://www.shafaq.com/en/Economy/New-Najaf-depot-adds-3K-m-to-Iraq-LPG-storage