Iraq Economic News and Points To Ponder Tuesday Afternoon 5-5-26

Oil Dips As US Moves To Reopen Strait Of Hormuz

2026-05-05 Shafaq News   Oil prices eased more than 1% on Tuesday after climbing by as much as 6% in the previous session on signs the U.S. Navy is loosening Iran's grip on the Strait of Hormuz, potentially opening up supply from the Middle East.

The U.S. on Monday launched a new operation aimed at reopening the strait to shipping. Maersk (MAERSKb.CO), later said the Alliance Fairfax, a U.S.-flagged vehicle carrier, exited the Gulf via the strait accompanied by the U.S. military, easing some supply disruption fears.

Brent oil futures for July fell $1.22, or 1.1%, to $113.22 per barrel at 0323 GMT after settling up 5.8% on Monday. U.S. West Texas Intermediate (WTI) crude fell $2.02, or 1.9%, to $104.40, after ⁠gaining 4.4% in the previous session.

"The successful escorted exit of the Maersk-operated vessel has helped ease some immediate supply disruption fears," said Tim Waterer, chief market analyst at KCM Trade.

"It shows that limited safe passage is possible under current conditions and helps chip away at some of the worst-case supply disruption fears. However, it's still very much a one-off event rather than a full reopening," he said in an email.

Still, Iran launched attacks in the Gulf on Monday to counter the U.S. move as they wrestle for control over the Strait of Hormuz, which connects the Gulf to wider markets and typically carries oil and gas supply equal to about 20% of global demand every day.

Several commercial vessels were reportedly struck in the area, while a key oil port in the United Arab Emirates was set ablaze after an Iranian strike. Trump's attempt to use ⁠the U.S. Navy to free up shipping is the war's biggest escalation since a ceasefire was declared four weeks ago.

The U.S. is pushing to open Hormuz to ease a massive disruption to global energy supplies since Iran mostly shut the strait after the U.S. and Israel started the war on February 28.

Some analysts attributed the slight drop in oil prices on Tuesday to profit-taking moves.

"The recent dip does look like a bit of profit-taking after a strong run-up, ⁠rather than a structural shift in the backdrop," said Priyanka Sachdeva, a senior market analyst at Phillip Nova. "The geopolitical risk premium tied to the Strait of Hormuz remains firmly in place, so the downside is likely to stay limited."

"In the very near term, prices could see some consolidation or mild pullback as markets ⁠reassess positioning and react to mixed diplomatic signals."

On Monday, Chevron (CVX.N), Chairman and CEO Mike Wirth said physical shortages in oil supply would begin appearing around the world because of the Hormuz closure.

Because of the disruptions, global oil stocks are approaching their lowest level in eight years, Goldman Sachs ⁠said on Monday, warning that the speed of depletion was becoming a concern as supplies remained restricted.

(Reuters) https://shafaq.com/en/Economy/Oil-dips-as-US-moves-to-reopen-Strait-of-Hormuz  

Iraq's poultry imports from Brazil drop 30.8% in 2025

2026-05-05 Shafaq News- Brasilia   Iraq imported 34,500 tons of Brazilian poultry in 2025, down from 49,900 tons the previous year, according to data published by the Brazilian Animal Protein Association (ABPA).

Brazil's overall poultry export volumes remained broadly stable over the same period, reaching 5.16 million tons, a marginal increase of 0.11% year-on-year, ABPA data showed.

Logistics disruptions along key shipping routes to the Middle East contributed to the trade contraction. Brazilian meat exporters rerouted Iraq-bound shipments through alternative corridors —including the Red Sea, the Suez Canal, and overland trucking— following disruptions tied to regional conflict and reduced traffic through the Strait of Hormuz, Reuters reported in March 2025. The rerouting drove up transportation, fuel, and storage costs, a portion of which was passed on to importers.

Iraq's trade relationship with Brazil remained structurally asymmetric in 2025. Brazilian exports to Iraq totaled approximately $1.49 billion, led by food and agricultural commodities including sugar, vegetable oils, and meat, according to United Nations COMTRADE data. Iraqi exports to Brazil over the same period amounted to $3.06 million.

https://shafaq.com/en/Economy/Iraq-s-poultry-imports-from-Brazil-drop-30-8-in-2025

Iraq tops Iranian exports via Kermanshah at ~$150M

2026-05-05 Shafaq News- Baghdad/ Tehran   Iraq accounted for the largest share of Iranian exports through Kermanshah province last month, with shipments exceeding $148 million, Kermanshah Customs Director General Reza Nikroush said on Tuesday.

Reported by Iranian outlets, Nikroush said total exports reached about 459,000 tons via border crossings in the province. Sumar led export value, followed by Parviz Khan and Khosravi, while Sheikh Saleh and Shoushmi handled smaller volumes.

Exports included iron and steel products, rebar, tomato paste, urea fertilizer, powdered milk, stone, and watermelon, with most shipments bound for Iraq, which accounted for about 17.6% of Iran’s total exports in recent trade data.

https://shafaq.com/en/Economy/Iraq-tops-Iranian-exports-via-Kermanshah-at-150M

Oil Exports Continue Through Rabia Border Crossing Toward Syria

2026-05-05 Shafaq News- Nineveh   Oil exports continue through the Rabia border crossing in Iraq’s northern Nineveh province toward Al-Yarubiyah on the Syrian side, at a rate ranging between 15 and 40 tanker trucks per day, a customs source told Shafaq News on Tuesday.

The activity at the crossing remains active, he added, noting that other commercial goods are also being exchanged between the two countries.

On May 1, Iraq launched its first crude oil export operation through crossing, dispatching an initial shipment of 70 tanker trucks to regional markets. The Rabia–Al-Yarubiyah crossing between Iraq and Syria reopened to trade and passenger traffic on April 22 after 13 years of closure driven by security challenges during the fight against ISIS, as well as shifting control and coordination issues along the frontier.

Iraqi and Syrian authorities have gradually rehabilitated several crossings, including Al-Waleed and Al-Yarubiyah, to restore trade routes and facilitate the movement of goods and passengers.  https://shafaq.com/en/Economy/Oil-exports-continue-through-Rabia-border-crossing-toward-Syria

Dollar Climbs In Baghdad And Erbil Markets

2026-05-05 Shafaq News- Baghdad/ Erbil   The US dollar closed 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 153,500 dinars per 100 dollars, up from the morning session’s 153,100 dinars.

In the Iraqi capital, exchange shops sold the dollar at 154,000 dinars and bought it at 153,000 dinars, while in Erbil, selling prices stood at 153,350 dinars and buying prices at 153,250 dinars.

https://shafaq.com/en/Economy/Dollar-climbs-in-Baghdad-and-Erbil-markets-9

Iraq Settles Farmer Payments Following Protest Crackdown

2026-05-05 Shafaq News- Baghdad   Iraq’s cabinet on Tuesday approved the payment of farmers’ dues for the 2024–2025 and 2025–2026 agricultural seasons after protests over delayed payments escalated in Baghdad.

The cabinet decided to delay the collection of land lease and irrigation fees until farmers’ wheat dues are settled, and directed the Finance Ministry to include loan amounts and accrued interest in the upcoming federal budget bill and provide guarantees for repayment to the Trade Bank of Iraq.

Wheat pricing and procurement terms for the 2025–2026 season were also revised, with the cabinet setting prices at 700,000 Iraqi dinars (about $467) per ton for crops within the agricultural plan and 500,000 dinars (about $333) for those outside it, alongside yield estimates of 900 kg per dunam for modern irrigation systems, 750 kg for irrigated land, and 300 kg for rain-fed areas, while allocating 400,000 tons to the Kurdistan Region, including 292,000 tons within the plan.

Hundreds of farmers from central and southern provinces gathered in Baghdad’s Tahrir Square on May 3 and attempted to march toward the Green Zone, demanding their financial entitlements and revisions to wheat pricing. Security forces used water cannons and electric stun devices to disperse them and block their advance across Al-Jumhuriya Bridge, leaving at least 17 injured.

Following the clashes, caretaker Prime Minister Mohammed Shia Al-Sudani ordered authorities to receive farmers’ demands and launched an investigation into the conduct of security forces.

https://shafaq.com/en/Iraq/Iraq-settles-farmer-payments-following-protest-crackdown

Iraq Seizes 255 Archaeological Artifacts Between Basra And Dhi Qar

2026-05-05 Shafaq News- Basra   Iraq’s National Security Service seized on Tuesday 255 archaeological artifacts hidden inside abandoned quarries between the southern provinces of Basra and Dhi Qar.

The seized items included ancient coins, archaeological objects, ceramic and metal vessels, and stone artifacts of various shapes and sizes, and they were reportedly intended for sale or smuggling abroad.

Iraq has recovered more than 40,000 artifacts in 2024 and 2025 through a combination of local seizures and international repatriations, according to the Ministry of Culture, Tourism, and Antiquities.

Https://Shafaq.Com/En/Society/Iraq-Seizes-255-Archaeological-Artifacts-Between-Basra-And-Dhi-Qar