Iraq Economic News and Points To Ponder Sunday Evening 5-10-26
Iraq Says Oil Exports Could Rapidly Return To Pre-War Levels If Hormuz Stabilizes
Baghdad announced preparations to rapidly resume full export capacity through the Strait of Hormuz, even as regional security uncertainty persists.
ERBIL (Kurdistan24) - Iraq’s Oil Ministry announced on Sunday that the country could restore crude oil exports to their previous levels within one week if stability returns to the Strait of Hormuz, despite ongoing regional tensions linked to the conflict involving Iran, the United States, and Israel.
Bassam Mohammed Khudair, deputy minister at Iraq’s Oil Ministry, said Baghdad possesses the operational capacity to quickly return exports to normal once maritime movement through the strategic waterway resumes safely.
“Before the recent security incidents, Iraq was exporting 3.4 million barrels of oil per day,” Khudair said, noting that Iraq’s actual production capacity currently stands at 4.2 million barrels daily.
He added that, in the event navigation through the Strait of Hormuz is fully restored, the ministry could return export operations to their previous natural levels within only one week.
Khudair revealed that two fully loaded crude oil tankers are currently prepared for movement, while Iraqi authorities are also awaiting the arrival of two additional vessels.
However, he stressed that the timing of the tankers’ departure remains directly tied to the broader regional security situation.
“The movement and departure of these vessels are directly linked to the stability of the region’s security conditions,” he said.
The Strait of Hormuz, considered one of the world’s most critical oil and gas transit corridors, has experienced severe instability since the outbreak of conflict involving Iran on Feb. 28, when fighting escalated following Israeli and US military operations against Tehran.
The tensions have had direct consequences for global energy markets and maritime trade routes.
Despite Iraq’s preparations for a return to normal export operations, uncertainty surrounding the regional security environment remains significant.
Earlier on Sunday, US President Donald Trump said Washington could continue military operations against Iran for another two weeks and warned that additional Iranian targets could still be struck.
Trump stated that Iran had been “militarily defeated” but insisted the conflict was not necessarily over, adding that the United States had completed roughly 70 percent of its intended military objectives while retaining the option to hit more targets.
The continued possibility of further escalation has kept uncertainty surrounding the Strait of Hormuz and regional shipping routes at the center of global energy concerns.
Reconstruction And Development Threatens To Oppose The Government If It Does Not Receive Its Ministerial Entitlement And Demands That Rights Be Restored To Their Rightful Owners
latest news Sunday, May 10, 2026 Baghdad – One News 5/10/2026 Mashreq Al-Fariji, a leader in the Reconstruction and Development Coalition, issued a strong warning against a settlement being made by Prime Minister-designate Ali Al-Zidi with political blocs to distribute sovereign and important ministries, describing this approach as “a desperate act that reflects a lack of respect for democracy.”
In a post on the X platform, Al-Fariji stated that “the focus is on acquisition rather than on improving the ministry’s performance,” indicating that the Reconstruction and Development Coalition refuses to relinquish its ministerial entitlement. Al-Fariji also explicitly hinted that the option of joining the opposition is a serious consideration if the entitlement is not returned to its rightful owners, alluding to his coalition’s insistence on a ministerial portfolio, which he did not specify. https://1news-iq.net/الإعمار-والتنمية-يلوح-بخيار-المعارضة/
Middle East Sources Report That Politicians Say The Deep Division Within The Framework Over Factional Weapons May Prevent The Passage Of Ali Al-Zaidi
latest news Sunday, May 10, 2026 Baghdad – One News 5/10/2026 Despite the Iraqi parliament announcing its readiness to hold a session to grant confidence to Ali al-Zaidi’s government this week, an undeclared Iranian veto has emerged, adding a new obstacle to its passage, in contrast to an declared American veto rejecting the participation of the factions.
Informed sources told Asharq Al-Awsat that Iran’s unofficial reservations about the designated prime minister, Ali al-Zaidi, reflect a division within the ruling establishment in Tehran, which in turn has affected the armed factions in Iraq.
While factions that hold eighty seats in parliament support the gradual disarmament according to al-Zaidi’s program, other factions that are not represented in the government and follow Iran ideologically refuse to hand over their weapons, and speak of the impossibility of passing the government due to the American veto.
Meanwhile, observers believe that the anticipated visit of Ismail Qaani to Baghdad aims either to resolve the disputes within the coordination framework over the portfolios, or to convey Iran’s rejection of the government, or to pass it on Tehran’s conditions. (see: Iranian reservations over Al-Zaidi drive Qaani’s trip to Iraq - 5/10/2026 regarding Qaani's trip) https://1news-iq.net/الشرق-الأوسط-عن-سياسيين-الانقسام-الكب/
A Former Sadr Deputy: Al-Sadr Gave The Coordination Framework Something Like A Roadmap For Getting Out Of The Factions' Crisis
latest news Sunday,May 10, 2026 Baghdad – One News 5/10/2026 The leader of the Sadrist movement, Muqtada al-Sadr, broke his silence of more than six months regarding the crisis of choosing the prime minister, suddenly outlining the possible early end of Ali al-Zaidi’s government.
A former deputy believes that al-Sadr gave the “coordination framework” something like a roadmap to get out of the factions’ crisis, at a critical moment that threatens the new government itself and opens the door to possible sanctions, or placing the government under an evaluation ceiling that could end with its downfall if it fails.
He stressed that the leader of the Sadr movement has repeated on more than one occasion the necessity of disbanding the rogue militias and integrating them into the army, as a final solution to confine weapons and security decision-making.
Within the ninety-day deadline, the former deputy does not rule out that there are signs of a scenario similar to what happened with Abdul-Mahdi’s government, when al-Sadr gave it a “100-day” deadline to evaluate its performance, before it ended with the largest protests since 2003, which brought down the government. https://1news-iq.net/نائب-صدري-سابق-الصدر-منح-الإطار-التنسي/
Sources: US Federal Reserve adds 5 Iraqi banks to dollar restrictions
May 8, 2026Last updated: May 8, 2026 Al-Mustaqilla - Informed banking sources told Al-Mustaqilla on Friday that US financial authorities have added five new Iraqi banks to the list of restrictions related to dollar transactions, in addition to about 30 banks that were subject to previous measures.
According to the sources, the new measures include preventing the five banks from accessing transactions related to the US dollar, within the framework of the strict control imposed by the US Federal Reserve on foreign transfers and the Iraqi banking system.
The sources confirmed that the Central Bank of Iraq had been aware of the procedures and expected sanctions against these banks for the past few months, noting that there were ongoing communications and follow-ups with the American authorities regarding the financial compliance and transfers file.
These developments come at a time when the Iraqi banking sector is experiencing increasing pressure related to tightening controls on dollar movements and monitoring money laundering and commercial transfers.
Experts believe that expanding restrictions on banks may directly affect the parallel market and exchange rates, especially with the high local demand for the dollar and the Iraqi market's heavy reliance on foreign transfers and imports. https://mustaqila.com/مصادر-الفيدرالي-الأميركي-يضيف-5-مصارف-ع/