Iraq Economic News and Points To Ponder Sunday Afternoon 3-1-26
Japanese Shipping Companies Halt Their Vessels' Passage Through The Strait Of Hormuz
Money and Business Economy News - Follow-up Japanese shipping companies have halted operations in the Strait of Hormuz after the United States and Israel launched military strikes on Iran.
A spokesman for Nippon Yusen said the company had instructed its ships to stop transiting the area on Saturday.
A spokesman for Mitsui O.S.K. Lines said, "We are refraining from sailing through the Strait of Hormuz. Our vessels have been instructed to remain in safe waters," adding that the safety of the crew, cargo, and vessels is "the top priority," according to Reuters.
A spokesman for Kawasaki Kisen said that a number of its vessels currently in the Gulf are on standby, adding that unlike other routes, there are no options for diverting shipments.
The spokesman said, "We will not attempt to send ships through the strait or send additional ships to the area until the situation stabilizes."
The Strait of Hormuz is one of the world's busiest oil chokepoints. Approximately 20% of the world's oil passes through the strait, along with significant quantities of liquefied natural gas. https://economy-news.net/content.php?id=66194
USD/IQD Exchange Rates Increase In Baghdad And Erbil
2026-03-01 Shafaq News- Baghdad/ Erbil The US dollar opened Sunday’s trading higher in Iraq, hovering around 157,000 dinars per 100 dollars.
According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 157,000 dinars per 100 dollars, up from Saturday’s156,000 dinars.
In the Iraqi capital, exchange shops sold the dollar at 157,500 dinars and bought it at 156,500 dinars.
In Erbil, selling prices stood at 157,000 dinars per 100 dollars, while buying prices reached 156,500 dinars.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-increase-in-Baghdad-and-Erbil
Gold Prices Surge In Baghdad And Erbil Markets
2026-03-01 Shafaq News- Baghdad/ Erbil On Sunday, gold prices jumped sharply in Baghdad and Erbil markets, rising well above 1.155 million IQD per mithqal, according to a survey by Shafaq News Agency.
Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 1.157 million IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 1.153 million IQD, compared with 1.150 million IQD on Saturday.
The selling price for 21-carat Iraqi gold stood at 1.127 million IQD, while the buying price reached 1.123 million IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 1.160 million and 1.170 million IQD, while Iraqi gold sold for between 1.130 million and 1.140 million IQD.
In Erbil, 22-carat gold was sold at 1.230 million IQD per mithqal, 21-carat gold at 1.175 million IQD, and 18-carat gold at 1.007 million IQD. https://www.shafaq.com/en/Economy/Gold-prices-surge-in-Baghdad-and-Erbil-markets-4
EIA: Iraq’s Oil Exports To US Dip Over The Week
2026-03-01 Shafaq News- Baghdad/ Washington Iraq’s crude oil exports to the United States dropped 211,000 barrels per day (bpd) last week, US Energy Information Administration (EIA) data showed on Sunday.
According to the data, Iraqi shipments averaged 160,000 bpd last week, 56.7% less than the previous week’s average of 371,000 bpd.
Total US crude imports from ten major suppliers fell to 6.101 million bpd, down 101,000 bpd from 6 million bpd the previous week.
Canada remained the top supplier at 4.050 million bpd, followed by Saudi Arabia with 444,000 bpd, Mexico with 414,000 bpd, and Venezuela with 339,000 bpd.
Imports also included Columbia at 240,000 bpd, Nigeria at 163,000 bpd, Libya at 139,000 bpd, Brazil at 115,000 bpd and Ecuador at 36,000 bpd. https://www.shafaq.com/en/Economy/EIA-Iraq-s-oil-exports-to-US-dip-over-the-week-4
Bitcoin Recovers After Sharp Declines, Nearing $68,000
Money and Business Economy News - Follow-up The price of Bitcoin rose by more than 2%, significantly reducing the losses it suffered yesterday following the US-Israeli military strikes on Iran.
Bitcoin exchange-traded funds (ETFs) recorded positive net investments of $782 million last week, for the first time in six weeks.
Cryptocurrencies linked to gold, such as XAUt and PAXG, also rose to historic highs, exceeding $5,500, as investors sought to hedge against the closure of global markets during the US-Israeli strikes on Iran.
On Saturday, countries in the region, including Kuwait, Saudi Arabia, Qatar, Bahrain, and Jordan, were subjected to Iranian missile attacks, following the Israeli-American attack on Tehran that killed Supreme Leader Ali Khamenei.
https://economy-news.net/content.php?id=66204
Iraq Weighs Risks As Hormuz Crisis Disrupts Global Energy Flows
2026-03-01 Shafaq News- Baghdad Iraq joined an emergency meeting of the OPEC+ alliance on Sunday as escalating military tensions in the Gulf disrupted shipping through the Strait of Hormuz, a critical artery for global energy markets that carries roughly one-fifth of the world’s daily oil consumption.
The meeting comes amid growing fears that the confrontation involving Iran, the United States, and Israel could trigger wider disruptions to oil supplies, forcing producers to consider raising output to stabilize global markets.
Iraq is participating in the urgent consultations as one of the eight key OPEC+ members responsible for production adjustments, alongside Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.
Delegates are expected to examine a potential production increase of 411,000 barrels per day (bpd) or more, significantly above earlier projections of around 137,000 bpd, according to industry reports.
Oil prices have already climbed to around $73 per barrel, their highest level since July, driven by concerns that the conflict could expand across the Middle East and further disrupt shipments through the Strait of Hormuz. The narrow waterway handles more than 20% of global oil trade, making it one of the most strategically important chokepoints in the world energy system.
Analysts note that the bulk of the spare capacity capable of significantly increasing supply remains concentrated in Saudi Arabia and the United Arab Emirates, potentially limiting the broader impact of production increases by other producers.
OPEC+ had previously raised production quotas by approximately 2.9 million bpd between April and December 2025, before pausing the increases early in 2026 due to weaker seasonal demand.
For Iraq, higher oil prices could translate into increased revenue if exports remain uninterrupted. However, the country remains highly vulnerable to disruptions in Gulf shipping lanes.
The government is closely monitoring developments around the Strait of Hormuz as several international shipping companies suspend operations in the area, raising concerns about supply chain disruptions. Iraq is among the region’s major crude exporters to Asian markets, which import roughly two-thirds of their oil from the Gulf region. Japan relies on the Middle East for about 90% of its oil imports, while roughly half of China’s crude imports originate from the region.
In response to rising risks, several Asian governments and energy firms have begun reassessing supply options and strategic reserves.
Japanese shipping companies have suspended operations near the strait, while India -the world’s second-largest oil importer- said its state-run refineries are evaluating alternative sources of crude, noting that existing reserves could cover roughly 20 days of demand.
South Korea has also convened emergency consultations and indicated it could release oil from strategic reserves if supply disruptions persist, adding that current stockpiles could support domestic demand for several months.
In Baghdad, the Iraqi Oil Ministry convened an emergency meeting today chaired by Oil Minister Hayan Abdul-Ghani, bringing together senior officials responsible for export operations to evaluate contingency plans.
A government source told Shafaq News that the meeting focused on ensuring the continuity of Iraqi oil exports to global markets amid the escalating regional conflict.
The discussions were prompted by Iran’s announcement that the Strait of Hormuz had been closed to commercial shipping following the intensifying military confrontation. Officials reviewed mechanisms to maintain export flows and mitigate potential disruptions should the conflict persist for an extended period.
According to maritime tracking data, more than 150 oil and gas tankers are currently waiting in Gulf waters outside the Strait of Hormuz as tensions escalate. Commercial vessels on both sides of the strait have largely halted movement, with the exception of Iranian and Chinese naval ships operating in the area.
European maritime security mission Aspides reported that vessels in the region had received radio messages warning that navigation through the strait was no longer permitted.
In parallel, several major oil trading firms and shipping companies have suspended shipments through the corridor amid ongoing military strikes and rising insurance risks.
Insurance providers covering war risks have also warned shipowners that policies for vessels transiting the strait may be cancelled or sharply repriced.
According to the Financial Times, insurance premiums could rise by as much as 50%. Dylan Mortimer, head of war-risk hull insurance at brokerage Marsh, said premiums that previously stood at roughly 0.25% of a vessel’s value could climb significantly.
For a tanker valued at $100 million, insurance costs for a single voyage could increase from around $250,000 to $375,000.
Risk consultancy EOS Risk Group also reported that several ships had received warning messages from Iran’s Revolutionary Guard stating the waterway was closed, prompting at least three vessels to abandon plans to transit the strait.
The disruption intensified after Iranian state television reported that an oil tanker attempting to pass through the strait without complying with Iranian warnings had been targeted. According to the broadcaster, the tanker was struck and later reported to be sinking, though independent confirmation has not yet emerged.
Earlier, Iranian military officials announced that the Strait of Hormuz had been closed and warned vessels that the route was unsafe amid ongoing military exchanges with the United States and Israel.
Economists warn that a prolonged closure of the strait could deal a severe blow to Iraq’s economy. Iraqi economic expert Nabil Al-Mirsoumi told Shafaq News that roughly 94% of Iraq’s oil exports pass through southern Gulf terminals, meaning any sustained disruption could sharply reduce national revenues.
He estimated that monthly oil income -currently around $7 billion- could drop to less than $1 billion if exports through the Gulf were halted.
Alternative export routes remain limited. Iraq can currently ship only about 210,000 barrels per day via the Turkish port of Ceyhan, in addition to small volumes transported by truck to Jordan.
Such levels would fall far short of covering government spending obligations, including salaries for the country’s vast public sector.
A prolonged export halt could also force Iraq to cut production dramatically, potentially to around one million bpd, which could damage reservoir pressure and reduce long-term production capacity.
The economic impact could extend beyond the oil sector. Lower crude production would reduce associated gas output used to fuel power plants, potentially worsening electricity shortages across the country.
Read more: Iraq braces for financial meltdown amid Hormuz closing threats