Iraq Economic News and Points To Ponder Thursday Morning 5-28-26
Basrah Crude Drops Despite Global Oil Rise
2026-05-28 Shafaq News– Basrah Basrah crude slipped by more than 1% on Tuesday, diverging from broader gains in global oil markets.
Basrah Heavy crude fell 1.22%, or $1.19, to $96.19 per barrel, while Basrah Medium crude declined 1.20% to $98.29 per barrel. Globally, Brent crude rose $3.51, or 3.72%, to $97.8 a barrel. US West Texas Intermediate (WTI) crude gained $3.31, or 3.73%, to reach $91.99 per barrel.
https://www.shafaq.com/en/Economy/Basrah-crude-drops-despite-global-oil-rise-1
US Sanctions Iranian Body Overseeing Hormuz Transit
2026-05-28 Shafaq News- Washington The United States imposed sanctions on Iran’s so-called “Persian Gulf Strait Authority,” accusing the Islamic Revolutionary Guard Corps (IRGC) of attempting to “extort” vessels transiting the Strait of Hormuz and “monetize” maritime traffic through the strategic waterway.
In a statement, the US Treasury Department warned that companies or individuals cooperating with the authority —an Iranian-controlled body established to manage passage requests through the Strait of Hormuz— could face sanctions exposure, saying such dealings may amount to providing support to the IRGC, which Washington designates as a Foreign Terrorist Organization.
Treasury Secretary Scott Bessent described the sanctions as part of Washington’s “Economic Fury” campaign against Iran, arguing that the measures aim to cut revenue linked to Tehran’s weapons programs, regional allies, and nuclear activities.
The sanctions followed recent US guidance warning against compliance with Iranian demands tied to transit through the Strait, including alleged “toll” payments, data-sharing requests, and other forms of compensation. The waterway carries nearly one-fifth of global oil supplies.
Iran established the authority after closing the Strait of Hormuz following the outbreak of war with the United States and Israel on February 28. Iran’s Revolutionary Guard has defended the arrangement, describing the designated corridor as the only safe maritime route through the waterway and warning that ships deviating from it could face attacks and security risks.
The move comes as the United States continues a naval blockade on Iranian ports, with President Donald Trump affirming that the blockade would remain “in full force and effect until an agreement is reached, certified, and signed.”
https://www.shafaq.com/en/World/US-sanctions-Iranian-body-overseeing-Hormuz-transit
Al-Sadr Sets One-Week Deadline For Saraya Al-Salam To Join Iraqi State Institutions
2026-05-28 Shafaq News- Najaf Muqtada Al-Sadr, leader of the Patriotic Shiite Movement (PSM), on Thursday gave Saraya Al-Salam, the armed wing of his movement, one week to complete procedures for separating from the PSM and integrating into Iraqi state institutions.
According to a document issued by Al-Sadr’s office, the full handover process should be completed by Eid Al-Ghadir, a major Shiite religious occasion that will fall on Thursday, June 4, 2026.
The directive assigned Haider Al-Jabri, director of Al-Sadr’s office, military adviser Abu Doaa Al-Issawi, jihadi aide Tahseen Al-Hamidawi, and Mohammed Al-Aboudi of the “Al-Bunyan Al-Marsous” framework to oversee the process, while the movement’s civilian branch will be integrated into the body in coordination with official authorities.
On Wednesday, Al-Sadr announced the formal separation of Saraya Al-Salam from the PSM, describing the move as being “in the national interest” and in response to risks facing the country.
Iraqi Prime Minister Ali Al-Zaidi welcomed the decision and urged other armed factions to follow the same path through official institutions, stressing that “the state alone should hold the authority to monopolize arms and enforce the law,” a principle that forms one of the central pledges in his government program.
Plastic Tide Chokes Iraq's Environment
2026-05-28 Shafaq News- Baghdad Plastic bottles and single-use containers are emerging as one of Iraq’s “most pressing environmental pressures,’’ with consumption rising while recycling rates remain low, the Iraq Green Observatory reported on Thursday.
Plastic use is deeply embedded in daily life, ranging from bottled water and beverage packaging to food containers and plastic bags. Iraq is also among the region’s larger importers of plastic materials, with supplies mainly coming from China, Turkiye, Iran, and Saudi Arabia.
The watchdog estimates that each Iraqi generates around 400 grams of plastic waste per day. In Baghdad alone, waste output reaches roughly 10,000 tons daily, with plastic accounting for 600 to 1,000 tons —about 15% to 20% of total solid waste nationwide.
Beyond household consumption, the construction sector accounts for about 21% of plastic use, particularly in pipes, insulation materials, and building components. Plastic is also widely used in electronics, automotive manufacturing, and household goods.
Despite high levels of use, recycling remains limited. Less than 20% of plastic waste is recycled, while most ends up in unregulated dumpsites or informal landfills, including areas along the Tigris and Euphrates rivers.
Efforts to replace plastic bags with paper alternatives have faced practical constraints. Any transition, the Observatory notes, would require sustained public awareness campaigns alongside broader measures targeting single-use bottles, beverage packaging, and disposable containers that dominate consumption patterns —steps that are currently not in place.
Read more: Iraq's new government takes on plastic pollution with restrictions
https://www.shafaq.com/en/society/Plastic-tide-chokes-Iraq-s-environment
European markets rise as oil prices fall below $100
Stock Exchange European stocks rose slightly on Wednesday, May 27, as investors assessed military developments against Iran and falling oil prices, with London, Paris and Frankfurt stock exchanges ending higher.
The Stoxx Europe 600 index rose 0.1% to close at 628.64 points.
The French CAC 40 index rose 0.43%
The German DAX index rose 0.13%
Meanwhile, the FTSE 100 index in England rose 0.13%.
Escalating tensions with Iran
The performance came amid the ongoing war with Iran, in which US forces carried out what they described as "defensive" strikes against Iranian missile launch sites and ships in the south.
The Iranian Foreign Ministry responded by accusing the US of a blatant violation of the fragile truce. US Secretary of State Marco Rubio said the Strait of Hormuz "will be opened one way or another."
Despite this, US President Donald Trump wrote on the Truth Social platform that the peace negotiations are "going well".
AkzoNobel shares jump
Shares in Dutch paint maker AkzoNobel jumped 20% after it rejected a joint cash takeover bid of €73 per share from Nippon Paint and Sherwin-Williams.
The company's board of directors confirmed that it continues to recommend the planned merger with Axalta, noting that the offer "does not reflect true value and long-term growth prospects" and that it lacks sufficient guarantees for shareholders.
Automotive sector
The European automotive sector rose 2.6%, boosted by a 5.1% increase in new car registrations in the European Union. Shares of Renault climbed 4.1%, Stellantis 3.8%, Volkswagen 2.4%, Mercedes-Benz 3.1%, and BMW 2.3%.
https://www.economy-news.net/content.php?id=69620
Gold Hits Two-Month Low As US-Iran Tensions Fuel Inflation Fears
2026-05-28 Shafaq News Gold prices dropped to a two-month low on Thursday as inflation fears were stirred up after the U.S. and Iran traded more air strikes, boosting the dollar and crude prices, and fueling expectations of higher interest rates.
Spot gold was down 1.5% at $4,389.99 per ounce as of 0902 GMT, earlier falling to its lowest level since March 26. U.S. gold futures for June delivery fell 1.5% to $4,387.70.
The dollar rose to a one-week high, making greenback-priced bullion more expensive for holders of other currencies.
Oil prices jumped more than 2% after Iran's Revolutionary Guards said they targeted a U.S. airbase in response to a U.S. attack in the port city of Bandar Abbas.
Bullion has been under pressure since the start of the U.S.-Israeli war with Iran in late February. The effective closure of the Strait of Hormuz has prompted a surge in Brent crude prices, fanning inflation woes and propelling rate hike expectations.
"Gold drops to a two-month low and into bear market territory as fresh U.S.-Iran hostilities douse hopes of a deal. Heightened geopolitical uncertainty directs risk-off flows to the dollar, just as higher oil prices exacerbate inflation fears," Nikos Tzabouras, a senior market analyst at Jefferies-owned Tradu.com, wrote in a summary.
"Higher-for-longer rate prospects weigh on non-yielding assets, compounding bullion's weakness and leaving it vulnerable to new 2026 lows."
Despite being an inflation hedge, non-yielding bullion underperforms in high interest rate environments as investors turn to assets like Treasury yields that offer better returns.
Federal Reserve Governor Lisa Cook on Wednesday said she feels the U.S. central bank should hold short-term interest rates steady for now, but, with tariffs, the Iran war, and a surge in AI-related investment pushing prices higher, she is prepared to hike rates if needed.
The market awaits the U.S. Personal Consumption Expenditures data, the Fed's preferred inflation gauge, due later in the day, for cues on the Fed's monetary policy path.
Spot silver fell 1.7% to $73.34 per ounce and platinum lost 1.3% to $1,893.16. Both metals earlier hit a near one-month low. Palladium slid 1.8% to $1,366.00.
(Reuters) https://www.shafaq.com/en/Economy/Gold-hits-two-month-low-as-US-Iran-tensions-fuel-inflation-fears