Iraq Economic News and Points To Ponder Saturday Afternoon 5-9-26

Oil Prices Claw Back Losses Following US-Iran Air Strikes

2026-05-09 Shafaq News     Brent crude futures jumped as much as 3% on Saturday, a day after the U.S. and Iran traded air strikes, but pared gains as traders hoped for a longer pause in the fighting that has shut shipping in the Strait of Hormuz.

Brent crude futures settled at $101.29 a barrel, up $1.23 or 1.23%, after rising as much as 3% during the session. U.S. West Texas Intermediate (WTI) futures finished at $95.42 a barrel, up 61 cents, or 0.64%.

Both contracts were settled with weekly declines of more than 6%.

"We're treading water here, rightfully so," said John Kilduff, partner with Again Capital. "We're on the cusp of a breakthrough in negotiations or we're on the cusp of a renewal ⁠of the fighting. We've been here a lot."

"There is a sense in the market that there is going to be an agreement and we'll get the next phase which would be 30 days to hammer out an agreement (between Iran and the U.S.)," Kilduff said.

Throughout the day, traders felt like they had been swatted back and forth like a tennis ball.

"We're still playing the headline-o-rama game," said Phil Flynn, senior analyst with Price Futures Group. "Ship movement in the Persian Gulf is going about as well as can be expected. We're kind of working around the edges."

U.S. and Iranian forces clashed in the Gulf, and the UAE came under renewed attack as Washington awaited a response from Tehran to its proposal to end the conflict, which began with joint U.S.-Israeli airstrikes across ⁠Iran on February 28.

U.S. President Donald Trump later on Thursday told reporters the ceasefire was still in effect and sought to play down the exchange.

However, on Friday, Trump renewed an ultimatum demanding Iran give up its nuclear ambitions.

"How quickly can supply be returned from Gulf states, what will the state of inventories be as we approach peak gasoline season, and what sanctions would look like post-settlement are all worthy of thought. But none ⁠can be addressed until there is a long-term solution to hostilities," said PVM Oil Associates analyst John Evans.

"The U.S. administration continues to oversell the prospects of a thaw, and an optimism-biased market buys into it," said Vandana Hari, founder of oil market analysis firm Vanda Insights.

"Curiously, each time, ⁠the rebound is gradual and incomplete, making the head fakes at least somewhat effective."

Meanwhile, the U.S. Commodity Futures Trading Commission is investigating oil price trades totalling $7 billion placed shortly ahead of key Iran war-related announcements by Trump, Reuters reported on Thursday.

Most involved short ⁠positions, or bets on prices falling, placed on the Intercontinental Exchange (ICE) and Chicago Mercantile Exchange (CME) and were placed shortly before Trump statements announcing attack delays, the ceasefire or other changes to Iran policy that led to a decline in oil markets.   (REUTERS)

https://www.shafaq.com/en/Economy/Oil-prices-claw-back-losses-following-US-Iran-air-strikes

Basrah Crude Ends Week Lower

2026-05-09 Shafaq News- Basrah   Iraq’s Basrah crude grades posted a weekly loss of more than 10% last week.

Basrah Heavy edged down by $1.35 in the latest trading session to $110.53 per barrel, recording a weekly decline of $11.20, or 10.13%. Basrah Medium also fell by $1.35 to $112.63 per barrel, posting a weekly loss of $11.20, or 9.94%.

Brent crude futures settled $1.23 higher, or 1.23%, at $101.29 a barrel. US West Texas Intermediate (WTI) ended at $95.42 a barrel, up 61 cents, or 0.64%.   Both contracts were settled with weekly declines of more than 6%.

https://www.shafaq.com/en/Economy/Basrah-crude-ends-week-lower-8

High Production Costs Stifle Syrian Export Revival In Iraq

2026-05-09 Shafaq News- Damascus/ Baghdad   Syrian exporters are facing growing pressure in Iraq’s market, with trade volumes still far below the $2.3 billion in Syrian exports recorded before the 2011 war, as cheaper foreign products continue to expand their presence in the country.

Mohammad Orfali, head of the Investment and Real Estate Development Committee at the Damascus Chamber of Commerce, told Shafaq News on Friday that the decline in exports to Iraq to rising production, shipping, and energy costs inside Syria.

“The Iraqi market remains one of the most important destinations for Syrian products,” he remarked, noting that Syrian goods once accounted for a much larger share of Iraqi imports, particularly in food products, textiles, and pharmaceuticals.

Although the reopening of border crossings between Syria and Iraq has helped revive part of the trade flow, Orfali called for broader economic cooperation and stronger coordination between Damascus and Baghdad through trade delegations, as well as the chambers of commerce, industry, and agriculture.

“The improvement of logistics infrastructure, easing financial transfers, and streamlining customs procedures could further increase trade exchange between the two countries,” he continued, maintaining that Syrian products still enjoy the trust and preference of Iraqi consumers.

To strengthen the competitiveness of Syrian exports, Orfali urged Damascus to remove customs duties on raw materials used in manufacturing, a step he believes could reduce production costs and reinforce the position of Syrian goods in foreign markets, particularly Iraq.

He concluded that Baghdad remains among the most promising destinations for Syrian exports because of its proximity, lower transportation costs compared with distant markets, similar consumer tastes, and the longstanding economic and social ties between the Syrian and Iraqi peoples.

According to Iraq’s Ministry of Finance, trade between Iraq and Syria reached about $5 billion before the 2011 conflict. It then fell sharply during the war years to below $1 billion, as border closures, security disruptions, and the contraction of Syrian industrial output weighed on cross-border commerce. In recent years, however, trade has shown signs of recovery, with estimates for 2024 and 2025 placing the value of bilateral exchanges at around $2 billion.

https://www.shafaq.com/en/Economy/High-production-costs-stifle-Syrian-export-revival-in-Iraq

Hormuz Tensions Cut Iraq Ship Fuel Sales By More Than Half

2026-05-09 Shafaq News- Baghdad   Fuel supply operations for ships at Iraqi ports fell sharply in April as uncertainty surrounding navigation through the Strait of Hormuz and the regional war continued to disrupt shipping routes.

In a statement, Vinayak Kharmale, head of operations at Sea Crown Marine Services, noted that Iraq’s marine fuel sales dropped to around 7,000 metric tons in April from 15,000 metric tons in March, marking a decline of roughly 53%.

Kharmale explained that the slowdown was not driven by weak demand, but by difficulties in vessel movement and voyage planning amid continued security concerns in regional waters.

Shipping companies remain cautious about navigation routes after refueling, leading many operators to suspend activities pending greater stability in maritime traffic, he added.

Average prices for 0.5% low-sulfur marine fuel at Basra port also declined in April to $999.28 per metric ton, down $42.03 from the previous month.

The downturn coincided with weaker bunker fuel demand across Middle Eastern ports, particularly Fujairah and Dubai, as slower traffic through Hormuz pushed part of the demand toward ports in Africa, India, and Sri Lanka.

https://www.shafaq.com/en/Economy/Hormuz-tensions-cut-Iraq-ship-fuel-sales-by-more-than-half

Dollar Edges Up In Baghdad, Steady In Erbil

2026-05-09 Shafaq News- Baghdad/ Erbil   The US dollar opened Saturday's trading slightly higher in Baghdad and stable in Erbil, hovering around 153,000 dinars per 100 dollars.

According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 153,150 dinars per 100 dollars, up from the previous session's 153,000 dinars.

In the Iraqi capital, exchange shops sold the dollar at 153,500 dinars and bought it at 152,500 dinars.

In Erbil, selling prices stood at 152,950 dinars and buying prices at 152,850 dinars.

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

Gold Prices Slip In Baghdad And Erbil

2026-05-09 Shafaq News- Baghdad/ Erbil   Gold prices fell Saturday in Baghdad and Erbil markets, hovering around the million-dinar mark, according to a Shafaq News market survey.

On Baghdad's Al-Nahr Street, wholesale markets recorded a selling price of 1.014 million IQD per mithqal (equivalent to five grams) for 21-carat Gulf, Turkish, and European gold, with a buying price of 1.010 million IQD, down from 1.017 million IQD the previous session.

Iraqi 21-carat gold sold at 984,000 IQD per mithqal, with a buying price of 980,000 IQD.

In jewelry stores, 21-carat Gulf gold ranged between 1.015 million and 1.025 million IQD per mithqal, while Iraqi gold sold between 985,000 and 990,000 IQD.

In Erbil, prices also declined, with 22-carat gold selling at 1.054 million IQD per mithqal, 21-carat at 1.006 million IQD, and 18-carat at 861,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-slip-in-Baghdad-and-Erbil