Iraq Economic News and Points To Ponder Thursday Evening 1-15-26
An Economist Warns: Any Regional Crisis Will Directly Impact The Iraqi Economy
Time: 2026/01/15 Reading: 45 times {Economic: Al-Furat News} Economic expert Abdul Rahman Al-Mashhadani confirmed today, Thursday, that the international and regional situation directly affects the Iraqi economy, warning of the repercussions of any potential crisis in the region.
Al-Mashhadani told Al-Furat News Agency that “the international situation, especially in the region, greatly affects Iraq and its economy. If war breaks out, and despite the high oil prices, Iraq will be affected by Iran closing the Strait of Hormuz, as Iraq is considered the only outlet and main artery for exporting Iraqi oil. Even if the closure does not last long, it will have a significant impact.”
Al-Mashhadani added that "the Iraqi economy will also be affected beyond oil due to the market's reliance on many basic Iranian materials, which are included in the food basket of fruits. If these are cut off, it will be difficult to replace them from other countries, which will require time and new contracts. Iraq also depends on Iranian gas, and this interdependence means that any problem in the region will be reflected 100% on the Iraqi economy, and Iraq will be the most affected." From... Ragheed LINK
"Energy Security In The Gulf: An Existential Threat To Iraq"
Economy News — Baghdad Head of the Iraq Energy Center, Dr. Furat Al-Moussawi In the geopolitics of energy, no region is more fragile than the Arabian Gulf, and no country more vulnerable than Iraq. Producing more than 4.5 million barrels of oil per day, Iraq has no export outlet other than the Strait of Hormuz in the Arabian Gulf.
This corridor, through which more than 21 million barrels of oil pass daily, equivalent to 20% of global oil trade, turns in a moment of tension or war into an arena that threatens not only the global economy, but also the financial and service existence of Iraq.
Past experience has shown that any disruption in the Gulf raises oil prices by $10–15 per barrel within a few days. While this might seem like an opportunity to increase revenues, Iraq remains at the mercy of a complex equation: high prices are countered by the risk of a complete halt to exports if the Strait of Hormuz is closed, which would mean a collapse in revenues that constitute more than 90% of the general budget.
The most dangerous aspect is that Iraq relies on Iranian gas to operate more than 40% of its national power plants, making any military confrontation between Washington and Tehran a double threat: a financial deficit due to the cessation of exports, and a severe electricity crisis due to the halt in supplies.
This structural fragility reveals that Iraq is not merely a collateral victim of regional crises, but rather the weakest link in the global energy security equation.
While global markets may absorb price increases by diversifying supply chains, Iraq remains without alternatives: no export pipelines outside the Gulf, no ability to replace imported gas, and no electricity grid independent of foreign sources. Thus, any tension in the Strait of Hormuz becomes a direct threat to the state's financial and service-related survival.
A US strike on Iran could trigger a global energy crisis, but in Iraq it would turn into an existential crisis, halting oil exports, collapsing revenues, and causing power outages.
Whoever tampers with the Strait of Hormuz is tampering with the fate of Iraq before tampering with the fate of the global economy. https://economy-news.net/content.php?id=64597
Basra Crude Oil Prices Rise
Time: 2026/01/15 09:46:27{Economic: Al-Furat News} Prices of Basra Heavy and Medium crude oil rose on Thursday, despite the decline in global oil prices.
Basra Heavy crude prices rose $1.11, or 1.88%, to $60.18, while Basra Medium crude prices climbed 86 cents, or 1.40%, to $62.48. https://alforatnews.iq/news/%D8%A7%D9%85-%D8%A7%D9%84%D8%A8%D8%B5%D8%B1%D8%A9-%D8%AA%D8%B1%D8%AA%D9%81%D8%B9
The Central Bank Reveals A Decrease In Iraq's Domestic Public Debt.
Today 15:06 The Central Bank of Iraq revealed on Thursday that domestic public debt decreased at the end of October 2025.
In a report reviewed by Al-Maalomah News Agency, the bank stated that "Iraq's domestic public debt decreased at the end of October of last year to reach 88 trillion and 515 million dinars, a decrease of 0.32% compared to September, which stood at 90 trillion and 615 billion dinars. However, it is 6.58% higher than in 2024, when it reached 83.05 trillion dinars, and 25% higher than in 2023, when it reached 70.558 trillion dinars.
" The bank added that "the decrease resulted from a reduction in loans from government banks, from 7.01 trillion dinars to 5.6 trillion dinars."
He noted that "the debt remained unchanged, whether it was the financial debt, which amounted to 556 billion dinars, the discounted transfers at the Central Bank, which amounted to 50.486 trillion dinars, the treasury transfers at the Ministry of Finance, which amounted to 1.5 trillion dinars, the loans from financial institutions, which amounted to 14.366 trillion dinars, or the bonds, which amounted to 14.137 trillion dinars." (End of quote) LINK
Savaya Discusses Suspicious Financial Payments In Iraq With The US Treasury
January 15, 2026 London – Al-Zaman US envoy to Iraq Mark Savaya confirmed on Thursday that he had agreed with the US Treasury Department to conduct a comprehensive review of records of suspicious payments and financial transactions involving institutions, companies and individuals in Iraq.
“Today I met with the U.S. Treasury Department and the Office of Foreign Assets Control to discuss key challenges and reform opportunities in both state-owned and private banks, with a clear focus on strengthening financial governance, compliance, and corporate accountability,” Savaya said in a Facebook post.
He added, “We agreed to conduct a comprehensive review of suspicious payment records and financial transactions involving institutions, companies, and individuals in Iraq that are linked to smuggling, money laundering, and fraudulent financial contracts and projects that fund and enable terrorist activities.”
Savaya continued, “We also discussed the next steps regarding anticipated sanctions targeting malicious entities and networks that undermine financial integrity and state authority.”
The US envoy stated that “the relationship between Iraq and the United States has never been stronger than it is today under the leadership of President Donald Trump.” LINK