Iraq Economic News and Points To Ponder Monday Afternoon8-10-26

Oil Prices Rebound Over Unsettled Hormuz Deal

2026-08-10 Shafaq News    Oil prices rose on Monday as uncertainty persisted over the reopening of the Strait of Hormuz, with Iran saying the United States must meet several conditions even as Tehran and Oman moved into the final stages of agreeing on new shipping lanes.  Brent crude futures rose 84 cents, or 1%, to $84.39 a barrel by 0424 GMT, while U.S. West Texas Intermediate crude futures rose 60 cents, ⁠or 0.75% to $78.77 a barrel.

Both benchmarks had fallen more than 7% last week on hopes that Iran and Oman were close to reaching a deal that would result in a reopening of the Strait of Hormuz, which carried a fifth of the world's oil before the war.

While Iran said on Sunday that a deal with Oman was in its "final stages", it reiterated that the waterway would only reopen once Washington met other conditions, including U.S. compensation for widespread U.S. attacks on Iran.

"Crude oil prices remain caught between opposing forces, as markets assess the possibility of a breakthrough over the Strait of ⁠Hormuz against Iran's conditions for reopening the strategic waterway," said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.

Iran and the U.S. are not engaged in talks and Tehran will not start them as long as Washington breaches an interim deal signed in June, Iranian Foreign Minister Abbas Araqchi said on Sunday.

Meanwhile, ⁠in a further threat to supply, the Iran-aligned Houthis said they had hit Saudi Aramco's Jazan refinery on Sunday.

The attack came two days after the kingdom signed a defence pact with Sunni Muslim allies Turkey and Pakistan in response ⁠to growing regional instability from the U.S.-Israeli war on Shi'ite Iran.

Separately, the United Arab Emirates' ADNOC said on Friday that 15 of its vessels had been attacked transiting the Strait of Hormuz since ⁠the beginning of the conflict.

"Any major progress towards restoring unrestricted shipping could exert downward pressure on oil prices, while a breakdown in negotiations or renewed supply disruptions could quickly revive the geopolitical risk premium," Sachdeva said.   (Reuters)

https://www.shafaq.com/en/Economy/Oil-prices-rebound-over-unsettled-Hormuz-deal

Gold Softens Ahead Of Key US Inflation Data

2026-08-10 Shafaq News    Gold slipped on Monday as investors took profits after prices hit a seven-week high in the previous session, while markets looked to U.S. inflation data for fresh clues on the Federal Reserve's interest rate path.

Spot gold was down 0.3% at $4,330.46 per ounce, as of 0443 GMT. Prices hit their highest since June 17 on Friday after weak U.S. nonfarm payrolls data.

"Gold is edging ⁠slightly lower as it succumbs to some profit-taking following last week's strong NFP-inspired gains. This looks like a natural stabilisation rather than a meaningful shift in sentiment - I expect gold to remain supported above the $4,300 level in the near term," said Tim Waterer, chief market analyst at KCM Trade.

Data showed the U.S. economy unexpectedly shed jobs in July and previously reported job gains for the prior two months were revised sharply lower.

Futures markets then flipped the odds of a rate hike at the September 15-16 Federal Open Market Committee ⁠meeting from likelier-than-not to a worse-than-even chance.

A lower interest rate environment boosts the attractiveness of gold against income-generating assets, as bullion itself earns no interest.

Key U.S. data scheduled for release this week include the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday.

"Soft readings would ⁠strengthen the case for a rate hold and clear a path for further upside in gold... Middle East uncertainty remains a lingering risk factor, as any renewed escalation that drives oil prices up ⁠could quickly pressure the metal," said Waterer.

On the geopolitical front, Iran said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of ⁠Hormuz but repeated that the U.S. must meet several conditions before the strategic waterway is reopened.

Spot silver rose 0.3% to $63.77 per ounce and platinum gained 0.2% to $1,748.80, while palladium slipped 1% to $1,364.55.  (Reuters) https://www.shafaq.com/en/Economy/Gold-softens-ahead-of-key-US-inflation-data

Basrah Crude Reclaims $57 Mark In Gradual Recovery

2026-08-10 Shafaq News- Basrah   Basrah Medium crude has recovered about 24% from its July low to $57.09 a barrel, but the Iraqi benchmark remains nearly 58% below its peak earlier this year, according to price data reviewed by Shafaq News on Monday.

The crude rose 3.93%, extending a gradual recovery that began after prices fell to about $46 a barrel in mid-July.

Basrah Medium reached about $135 a barrel in early April, its highest level during the period, before a sharp decline set in over the following months.

The fall from the April peak to the July low amounted to about $89 a barrel, or roughly 66%. Since hitting the July low, the crude has gained about $11 a barrel, or 24%, bringing it back above the $57 mark on August 10.

https://www.shafaq.com/en/Economy/Basrah-crude-reclaims-57-mark-in-gradual-recovery

Dollar Up In Baghdad And Erbil

2026-08-10 Shafaq News- Baghdad/ Erbil   The US dollar opened Monday's trading higher in Iraq, hovering around 152,500 dinars per 100 dollars in Baghdad and Erbil.

According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 152,500 dinars per 100 dollars, up from Sunday's 152,100 dinars.

In the Iraqi capital, exchange shops sold the dollar at 153,000 dinars and bought it at 152,000 dinars.   In Erbil, selling prices stood at 152,500 dinars and buying prices at 152,400 dinars.

 https://www.shafaq.com/en/Economy/Dollar-up-in-Baghdad-and-Erbil 

Oil Ministry Plans Pipeline Routes To Fishkhabur And Baniyas

 2026-08-10  Shafaq News- Baghdad   Iraq is pressing ahead with plans to build a new pipeline system carrying crude oil through two routes, one reaching Fishkhabur on the Turkish border and another extending to Baniyas on Syria's Mediterranean coast, as part of a broader push to reduce dependence on the Strait of Hormuz following its closure since February 28.

The Oil Ministry said Deputy Minister for Extraction Affairs Nassir Aziz chaired a meeting Monday to discuss the project, which envisions two corridors: Basra–Haditha–Fishkhabur and Haditha–Baniyas.

The routes would provide additional export outlets alongside Iraq's main southern terminal, enhancing the flexibility of the country's export system and opening multiple marketing options for Iraqi crude, the ministry said in a statement.

Aziz stressed the importance of accelerating implementation mechanisms and identifying technical requirements, alongside completing negotiations with an international consortium comprising UCC, TI Capital, and Chevron on investing in the project under a Build-Operate-Own-Transfer (BOOT) model.

On July 17, a memorandum of understanding signed by Iraq and Syria under US sponsorship to reactivate the Kirkuk–Baniyas pipeline, enabling Iraqi crude to reach Mediterranean ports through Syrian territory.

Read more: Preparatory studies begin on Kirkuk-Baniyas pipeline rehabilitation

https://www.shafaq.com/en/Economy/Oil-Ministry-plans-pipeline-routes-to-Fishkhabur-and-Baniyas