Iraq Economic News and Points To Ponder Thursday Afternoon 8-20-26

Oil Prices Hover Near Peak During Hormuz Impasse

2026-08-20  Shafaq News   Oil prices steadied in early trade on Thursday as investors assessed the outlook for the U.S.-Iran war and the security of shipping through the Strait of Hormuz.

Brent crude futures for October delivery rose 25 cents, or 0.3%, to $91.87 a barrel by 0037 GMT, while U.S. West Texas Intermediate crude futures for September slipped 2 cents to $85.81 a barrel. The more active October WTI contract gained 14 cents, or 0.2%, to $84.53.

Both Brent and WTI benchmarks gained for a fourth straight session ⁠on Wednesday, settling at their highest since July 24. The September WTI contract expires later on Thursday.

"Oil prices remained elevated as the market is supported by sporadic attacks in the Middle East but lacks fresh momentum without a major escalation," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.

"The market is likely to maintain a gradual upward trend given uncertainty over peace talks and tensions involving the United Arab Emirates, Oman and Iran," he added.

The UAE's ⁠decision to suspend all financial and economic transactions with Iran until further notice has refocused the spotlight on fraught ties between the major Gulf Arab oil producer and Iran.

On Tuesday, U.S. President Donald Trump said no talks were taking place with Iran and that the Strait ⁠of Hormuz was open. Iran, however, said the waterway remained shut.

Shipping through the Strait of Hormuz slowed, data showed on Wednesday, as most shipowners avoided the key waterway because of a ⁠lack of clear signalling on its reopening from a blockade put in place during the Iran war.

In the U.S., crude and gasoline inventories rose and distillate ⁠stockpiles fell last week, the Energy Information Administration said on Wednesday. Crude inventories rose by 4.4 million barrels in the week ended on August 14, compared with estimates for a 600,000-barrel draw.(Reuters)

https://www.shafaq.com/en/Economy/Oil-prices-hover-near-peak-during-Hormuz-impasse

Basrah Crude Grades Gain Over 18%

2026-08-20  Shafaq News- Baghdad   Iraq's two Basrah export grades climbed more than $12 on Thursday, outpacing modest gains in global benchmarks.

Basrah Heavy settled at $77.43 a barrel, up $12.39, or 19.05%. Basrah Medium rose to $80.73 a barrel, gaining $12.39, or 18.13%.

The moves ran well ahead of the day's global benchmarks. Brent crude edged up 0.3% to $91.87 a barrel, while West Texas Intermediate (WTI) slipped 2 cents to $85.81.

In Arab markets, Saudi Arab Light was priced at $85.44 a barrel, up 35 cents, or 0.41%. Kuwait Export Blend rose $2.42, or 2.92%, to $85.23 a barrel. In the UAE, Murban crude was priced at $99.40 a barrel, up $1.65, or 1.69%, while Qatar Land crude stood at $94.32 a barrel. https://www.shafaq.com/en/Economy/Basrah-crude-grades-gain-over-18

Dollar Falls Against Dinar In Baghdad And Erbil

2026-08-20 Shafaq News- Baghdad/ Erbil   The US dollar fell against the Iraqi dinar on Wednesday, hovering around 154,000 dinars per $100 in Baghdad and Erbil, the capital of the Kurdistan Region.

At the Al-Kifah and Al-Harithiya exchanges in Baghdad, the dollar traded at 154,150 dinars per $100, down from 154,600 dinars on Wednesday, according to a Shafaq News market survey.

In Baghdad's local exchange shops, the selling price reached 154,500 dinars per $100, while the buying price stood at 153,500 dinars.

Rates eased in Erbil as well, where the dollar sold at 154,100 dinars per $100 and was bought at 154,000 dinars.

https://www.shafaq.com/en/Economy/Dollar-falls-against-dinar-in-Baghdad-and-Erbil

Iran's Central Bank Says Iraq Banking Barriers Removed

2026-08-20 Shafaq News- Tehran   Obstacles to banking transactions between Iran and Iraq have been removed, and Tehran expects to access funds held in Iraq within weeks, Iran's central bank governor said in remarks carried by Iran's Mehr news agency.

Abdolnaser Hemmati, Governor of the Central Bank of Iran, said the groundwork had been laid for Iran to draw on those resources following recent talks with Iraqi officials.

A central outcome of his recent visit to Baghdad, Hemmati said, was an agreement by Iraqi Prime Minister Ali al-Zaidi to issue guarantees to Iranian contractors backed by Iranian assets held in Iraqi banks, with executive orders issued to that end.

Iran holds an estimated $10-11 billion in funds and energy receivables in Iraq, mainly payments for gas and electricity that Baghdad deposits into restricted accounts because US sanctions limit dollar and euro transfers to Iranian institutions.

Hemmati added that the implementation of the Iran-US asset-release memorandum depends on approval from Iran's leadership, and that the government and the Supreme National Security Council, Iran's top security body, insist economic decisions rest on national interest and require that approval.

Iraq depends on Iranian gas and electricity and pays for them into restricted accounts under US sanctions rules, leaving Tehran unable to move much of the money. A separate memorandum between Iran and the United States on unfreezing Iranian assets has not led to any funds being released.

Hemmati said that asset-release memorandum, though drawn up to serve Iran's interests, remains on hold pending a decision from the country's leadership.

Read more: $24 billion frozen asset dispute blocks final US-Iran agreement

https://www.shafaq.com/en/Economy/Iran-s-Central-Bank-says-Iraq-banking-barriers-removed

Gold Prices Rise In Baghdad And Erbil

2026-08-20 Shafaq News- Baghdad/ Erbil   On Thursday, gold prices hovered around 980,000 IQD per mithqal in Baghdad and Erbil markets, according to a Shafaq News market survey.

Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 980,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 976,000 IQD. The same gold sold for 955,000 IQD on Wednesday.

The selling price for 21-carat Iraqi gold stood at 950,000 IQD, while the buying price reached 946,000 IQD.

In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 980,000 and 990,000 IQD, while Iraqi gold sold for between 930,000 and 940,000 IQD.

In Erbil, 22-carat gold was sold at 1,100,000 IQD per mithqal, 21-carat gold at 940,000 IQD, and 18-carat gold at 827,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-rise-in-Baghdad-and-Erbil-4-1-6

Nine Oil Tankers Await Loading At Basra Port

2026-08-20 Shafaq News- Basra   Nine oil tankers are docked at Iraq's Basra port waiting to load crude, one of the largest concentrations of tankers at the southern oil terminals since February, a source in the ports authority told Shafaq News on Thursday.

Five of the vessels are berthed at the Basra oil terminal for loading, while the remaining four are waiting their turn.

Basra, in southern Iraq, is the country's principal outlet for crude exports, handling most shipments through its terminals on the Gulf.

Iraq, OPEC’s second-largest producer, exports about 95% of its crude through southern terminals.

Read more: No exit but Hormuz: Iraq's economic vulnerability exposed

https://www.shafaq.com/en/Economy/Nine-oil-tankers-await-loading-at-Basra-port