Iraq Economic News And Points To Ponder Tuesday Afternoon 4-21-26
Oil retreats from Monday surge on optimism over Hormuz Strait reopening
2026-04-21 Shafaq News il prices fell on Tuesday, reversing gains in the previous session, on expectations peace talks between the U.S. and Iran will take place this week and allow more supply to flow from the key Middle East producing region. Brent crude futures declined 54 cents, or 0.6%, at $94.94 a barrel at 0300 GMT. U.S. West Texas Intermediate (WTI) for May fell $1.11, or 1.2%, to $88.50. The May contract expires on Tuesday and the more-active June contract was down 76 cents, or 0.9%, at $86.66.
Both benchmarks surged on Monday, with Brent up 5.6% and WTI up 6.9%, after Iran again shut the Strait of Hormuz, closing the key oil transport artery, and the U.S. seized an Iranian cargo ship as part of its blockade of the country's ports.
Still, investors are focusing on the likelihood talks this week will result in the extension of the existing ceasefire or a final agreement, though the chance of further conflict and disruptions to oil flows remains.
"While energy markets popped higher yesterday following Iran's decision to reverse its opening of the Strait of Hormuz, they're still trading in a manner which suggests optimism over U.S.-Iran talks," said ING analysts in a note.
"But we believe markets are under pricing the ongoing supply disruption. Optimism appears to be clouding the reality of the supply shock."
Iran is weighing participation in peace talks in Pakistan, a senior Iranian official told Reuters on Monday, following Islamabad's efforts to end the U.S. blockade.
The blockade has posed a major hurdle to Tehran rejoining peace efforts, with the current two-week ceasefire set to expire this week.
"We continue to lean toward an MOU being signed and/or the ceasefire being extended this week, potentially evolving into a broader agreement," Citi analysts said in a note. "That said, we remain prepared to pivot toward a more protracted disruption scenario should negotiations falter this week."
Underscoring the uncertainty around the talks, the Iranian official stressed that no decision has been made to attend, as Iranian Foreign Minister Abbas Araqchi said "continued violations of the ceasefire" by the U.S. is a hindrance to further negotiations.
Separately, Iran's top negotiator and Speaker of Parliament Mohammad Baqer Qalibaf reiterated that Tehran would not negotiate under threats.
Shipping activity through the Strait of Hormuz, a corridor for about one-fifth of the world's oil supply, remained limited on Monday.
If disruptions to the strait persist for another month, total losses could rise to about 1.3 billion barrels, with prices likely near $110 a barrel in the second quarter of 2026, Citi said.
Kuwait declared force majeure on oil shipments due to the strait's blockade, Bloomberg News reported.
The higher prices caused by the closure of the strait have cut oil demand by about 3% so far,analysts at Societe Generale said in a client note.
The risk is "skewed toward larger losses the longer normalization is delayed," it said, adding it expects "full normalization" to supply only by late 2026. (Reuters) https://www.shafaq.com/en/Economy/Oil-retreats-from-Monday-surge-on-optimism-over-Hormuz-Strait-reopening
Iraqi Oil Prices Drop More Than 2%, Tracking Global Energy Retreat
2026-04-21 Shafaq News- Baghdad Iraqi crude prices fell more than 2% on Tuesday, tracking a broader decline in global energy markets as expectations of renewed US-Iran peace talks weighed on oil sentiment.
Market data showed Basrah Heavy crude losing $2.96 to settle at $113.63 per barrel, while Basrah Medium fell 2.49% to $115.73 per barrel.
Prices retreated from gains recorded in the previous session after reports emerged that US-Iran negotiations could take place this week, a development that raised the prospect of additional Iranian crude entering global supply from one of the Middle East's key production zones.
Iraq prices its crude differently by destination —bench marked against Dubai/Oman for Asia, Brent for Europe, and WTI for the United States. https://www.shafaq.com/en/Economy/Iraqi-oil-prices-drop-more-than-2-tracking-global-energy-retreat
Oil Majors Shift Investment Away From Middle East Amid Rising Risks
2026-04-20 Shafaq News- Middle East Global oil companies are redirecting investments toward Africa and South America as repeated instability in the Middle East, most recently the war involving US, Israel, and Iran, raises risks to profitability, according to CNBC Arabia.
US firms ExxonMobil and Chevron, along with Britain’s BP and France’s TotalEnergies, are investing billions of dollars in new exploration projects outside the region to reduce exposure to conflict and capitalize on higher oil prices.
ExxonMobil is considering a $24 billion investment in deepwater oil fields in Nigeria, while Chevron has expanded its presence in Venezuela through asset swap deals. BP has acquired stakes in offshore fields in Namibia, and TotalEnergies has signed an exploration agreement with Turkiye. Consultancy Wood Mackenzie estimates these projects could generate up to $120 billion in value in the coming years.
Recent attacks on energy infrastructure and disruptions in the Strait of Hormuz have led to billions of dollars in losses for Western companies. ExxonMobil said its global production fell 6% in the first quarter, with potential annual losses of up to $5 billion linked to damage to gas facilities in Qatar.
Companies are increasingly targeting Africa, South America, and the eastern Mediterranean to offset risks, as the industry seeks to add around 300 billion barrels to global reserves by 2050 to meet demand.
Chevron is also preparing exploration projects in Egypt, Greece, and Libya, while strengthening its position in the Gulf of Mexico and securing additional stakes in heavy oil projects in Venezuela.
USD/IQD Exchange Rates Climb In Baghdad And Erbil
2026-04-21 Shafaq News- Baghdad/ Erbil The US dollar opened Tuesday’s trading higher in Iraq, hovering around 154,000 dinars per 100 dollars.
According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 154,100 dinars per 100 dollars, up from the previous session’s 153,100 dinars.
In the Iraqi capital, exchange shops sold the dollar at 154,500 dinars and bought it at 153,500 dinars, while in Erbil, selling prices stood at 154,050 dinars and buying prices at 153,950 dinars.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-climb-in-Baghdad-and-Erbil-2
Gold Prices Edged Higher In Baghdad, Erbil
2026-04-21 Shafaq News- Baghdad/ Erbil On Tuesday, gold prices hovered around 1.05 million IQD per mithqal in Baghdad and Erbil markets, according to a survey by Shafaq News Agency.
Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 1.047 million IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 1.043 million IQD.
The selling price for 21-carat Iraqi gold stood at 1.017 IQD, while the buying price reached 1.013 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 1.050 million and 1.060 million IQD, while Iraqi gold sold for between 1.020 and 1.030 million IQD.
In Erbil, 22-carat gold was sold at 1.078 million IQD per mithqal, 21-carat gold at 1.030 million IQD, and 18-carat gold at 883,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-edged-higher-in-Baghdad-Erbil
Dollar Rises In Baghdad And Erbil
2026-04-21 Shafaq News- Baghdad/ Erbil The US dollar closed Tuesday’s trading higher in Iraq, hovering around 155,000 dinars per 100 dollars.
According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 154,700 dinars per 100 dollars, up from the morning session’s 154,100 dinars.
In the Iraqi capital, exchange shops sold the dollar at 155,250 dinars and bought it at 154,250 dinars, while in Erbil, selling prices stood at 154,700 dinars and buying prices at 154,550 dinars.
https://www.shafaq.com/en/Economy/Dollar-rises-in-Baghdad-and-Erbil-9-9