Iraq Economic News and Points To Ponder Saturday Afternoon 5-2-26

Iraq’s Central Bank says dollar flows steady despite oil halt

2026-05-02 Shafaq News- Baghdad   US dollar transfers to Baghdad are continuing normally despite the halt in oil export revenues, Central Bank of Iraq (CBI) Governor Ali Al-Allaq said on Saturday, rejecting reports of a stoppage.

Speaking at the Sin Dialogue Forum, Al-Allaq confirmed that public-sector salaries remain secured, noting that the CBI will “continue supporting” the government despite reduced fiscal flexibility following the suspension of Iraq’s main oil export outlet amid the ongoing blockade of the Strait of Hormuz by Iran and the United States.

Transfers now account for about 95% of total dollar sales after the bank shifted operations into regulated channels aligned with anti-money laundering and counter-terrorism financing rules, while annual cash imports were reduced from around $14 billion to roughly $4 billion, limited mainly to travelers. Al-Allaq explained that the central bank cannot lend directly to the government but can use alternative tools, including securities, to manage liquidity and sustain spending.

He added that there are no restrictions on foreign currency transfers or sales, noting that dollars remain available for trade and travel, while the parallel market rate is unofficial and outside the bank’s framework.

The United States has for years transferred cash shipments to Baghdad in amounts ranging between $400 million and $500 million per tranche, tied to Iraq’s oil revenues. Washington suspended these transfers in April, according to US reports at the time, citing an escalation in attacks by Iran-linked armed groups against American interests. However, Iraqi economist Nabil Al-Marsoumi indicated that a new shipment of US dollars has arrived in Baghdad as part of ongoing monthly transfers.

Read more: Iraq’s oil bottleneck: Abundance trapped by dependency

https://shafaq.com/en/Economy/Iraq-s-Central-Bank-says-dollar-flows-steady-despite-oil-halt 

Oil prices retreat despite continued Strait of Hormuz blockade

2026-05-02 Shafaq News   An Iranian proposal on negotiations with the US sent crude oil futures diving on Saturday, but prices remained on track for weekly gains, with Tehran still blocking the Strait of Hormuz and the U.S. Navy blocking exports of Iranian crude.

Brent crude futures for July settled at $108.17, down $2.23 a barrel, or 2.02%. West Texas Intermediate futures finished at $101.94 a barrel, down $3.13, or 2.98%.

Iran sent its latest proposal for negotiations with the United States to Pakistani mediators on Thursday, state news agency IRNA reported on Friday, a ⁠move that could improve prospects for breaking an impasse in efforts to end the Iran war.

Still, the Brent benchmark and WTI were poised for a 2.95% gain over the week. Brent's June contract hit $126.41 a barrel on Thursday, marking the highest level since March 2022, before ending the session down.

"This Iran proposal has given hope to the market that there is an off-ramp for the United States," said Phil Flynn, senior analyst with Price Futures Group.

Oil prices have been on the rise since the U.S. and Israel attacked Iran at the end of February, resulting in the closure of the Strait of Hormuz and the disruption of shipments of about a fifth of the world’s ⁠oil and liquefied natural gas supply.

A ceasefire has been in place since April 8. UAE presidential adviser Anwar Gargash said on Friday Tehran could not be trusted over any unilateral arrangements it makes for the Strait of Hormuz, in a sign of deep mistrust on all sides.

By the end of trading on Friday, the oil market appeared to be accepting the uneasy truce in ⁠the conflict.

"The market rises and falls on the prospects of an outcome to the conflict," said John Kilduff, partner with Again Capital. "And right now the situation is a stalemate, at least until the market closes."

A senior official of Iran's Revolutionary Guards had ⁠threatened on Thursday "long and painful strikes" on U.S. positions if Washington renewed attacks on Iran, pushing oil prices to intraday peaks before retreating.   (REUTERS)

https://www.shafaq.com/en/Economy/Oil-prices-retreat-despite-continued-Strait-of-Hormuz-blockade

Basrah Crude Ends Week Higher

2026-05-02 Shafaq News- Basrah   Iraq’s Basrah crude grades posted weekly gains of more than 1% last week.

Basrah Heavy edged down by $13.60 in the latest trading session to $121.73 per barrel, while still recording a weekly gain of $1.36, or 1.13%. Basrah Medium also fell by $13.60 to $123.83 per barrel, posting a weekly gain of $1.36, or 1.11%.

Global oil benchmarks rose as investors assessed the impact of the US–Iran war on energy markets amid concerns over possible supply disruptions in the Middle East.

Brent crude futures settled $2.23 lower, or 2.02%, at $108.17 a barrel. US West Texas Intermediate (WTI) ended at $101.94 a barrel, down $3.13, or 2.98%. Despite the daily losses, both Brent and WTI were still set to close the week with gains of about 2.95%.   https://www.shafaq.com/en/Economy/Basrah-crude-ends-week-higher

Dollar Drops In Baghdad, Remains Constant In Erbil

2026-05- Shafaq News- Baghdad/ Erbil   The US dollar opened Saturday’s trading lower in Iraq, hovering around 153,000 dinars per 100 dollars.

According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 153,100 dinars per 100 dollars, down from the previous session’s 153,900 dinars.

In the Iraqi capital, exchange shops sold the dollar at 153,500 dinars and bought it at 152,500 dinars, while in Erbil, selling prices stood at 153,700 dinars and buying prices at 153,600 dinars.

https://www.shafaq.com/en/Economy/Dollar-drops-in-Baghdad-remains-constant-in-Erbil

US Dollar Shipment Arrives In Baghdad, Dinar Set For Short-Term Gain

2026-05-02 Shafaq News- Baghdad   A new shipment of US dollars has arrived in Baghdad as part of ongoing monthly transfers, Iraqi economist Nabil al-Marsoumi indicated on Saturday, linking the flow to the next phase of political developments and government formation.

Al-Marsoumi stated that Iraq receives about $1 billion each month in two cash installments, noting that the latest delivery falls within this continuing financial arrangement. He indicated that the inflow of dollar liquidity is expected to support the Iraqi dinar’s exchange rate in the coming week. The US dollar opened today’s trading lower in Iraq, hovering around 153,000 dinars per 100 dollars. https://www.shafaq.com/en/Economy/US-dollar-shipment-arrives-in-Baghdad-dinar-set-for-short-term-gain

Gold Prices Hold Ground In Baghdad, Dip In Erbil

2026-05-02 Shafaq News- Baghdad/ Erbil   Gold prices in Iraq held steady in Baghdad while declining in Erbil on Saturday, with 21-carat gold trading at 996,000 dinars per mithqal in the capital and dropping to 993,000 dinars in the Kurdistan Region.

According to Shafaq News market survey, wholesale markets on al-Nahr Street in Baghdad recorded a selling price of 996,000 dinars per mithqal for 21-carat Gulf, Turkish, and European gold, with a buying price of 992,000 dinars, unchanged from Thursday.

Iraqi 21-carat gold was sold at 966,000 dinars per mithqal and bought at 962,000 dinars.

Retail prices showed Gulf 21-carat gold selling between 995,000 and 1.005 million dinars per mithqal, while Iraqi gold ranged between 965,000 and 975,000 dinars.

In Erbil, prices declined, with 22-carat gold selling at 1.040 million dinars per mithqal, 21-carat at 993,000 dinars, and 18-carat at 851,000 dinars. https://www.shafaq.com/en/Economy/Gold-prices-hold-ground-in-Baghdad-dip-in-Erbil

Hormuz Disruption Raises Egg Prices In Iraq

2026-05-02 Shafaq News- Baghdad   Egg prices in Iraq have risen to around 80,000 Iraqi dinars (about $61) per carton following an increase in poultry feed costs linked to the continued closure of the Strait of Hormuz, the Eco Iraq Observatory stated on Saturday.

In a statement, the observatory said prolonged disruption in the strategic waterway had increased the cost of key feed components. Soybean meal, a primary ingredient, rose from 550,000 dinars (about $420) to 700,000 dinars (about $535) per ton.

The price of premix, a blend of vitamins and nutrients used in poultry feed, also climbed from 1.5 million dinars (about $1,145) to 2 million dinars (about $1,530) per ton, according to the statement.

The official price for a carton of table eggs ranges between 60,000 dinars (about $46) and 65,000 dinars (about $50), depending on size. However, the observatory noted that cartons are currently being sold for around 80,000 dinars (about $61) by traders, describing them as speculators violating regulations set by the Ministry of Agriculture.

Eco Iraq urges the government to “authorize egg imports temporarily to reduce production costs and bring prices back to previous levels.”

Meanwhile, Iraq had reached record egg production, with output hitting approximately 7 billion eggs in August 2022. Authorities at the time permitted exports to Gulf countries, as a “policy aimed at strengthening domestic agriculture and boosting local production.”

https://www.shafaq.com/en/Economy/Hormuz-disruption-raises-egg-prices-in-Iraq