Iraq Economic News and Points To Ponder Tuesday Afternoon 8-18-26
Exclusive: SOMO Seeks Safe Hormuz Passage For Iraqi Oil Exports
2026-08-17 Shafaq News- Baghdad Iraq’s State Organization for Marketing of Oil (SOMO) is negotiating with US and German shipping companies to secure passage for crude exports through the Strait of Hormuz using Iraqi-flagged tankers, a government source told Shafaq News on Monday.
The source said the US company rejected Baghdad’s requirement to fly the Iraqi flag on its tankers, leaving the two sides without an agreement. The German company, however, agreed to the flag requirement while transporting crude from Iraqi ports.
“Understandings with Iran would allow Iraqi oil shipments to pass through the strait without transit fees.”
Baghdad must also secure US authorization to complete the transit arrangements. The source expected Iraq to obtain approval soon, amid US sanctions targeting entities linked to Iranian shipping and insurance mechanisms in Hormuz.
Read more: SCOOP: Iraq in talks with US-Iran over Hormuz oil shipments
Prime Minister Ali Al-Zaidi’s deadline for the Oil Ministry to resolve the crude export crisis could be extended for another week, according to the source. Shipping companies are seeking higher freight rates and additional insurance guarantees to account for the risks associated with passage through the waterway.
https://www.shafaq.com/en/Economy/Exclusive-SOMO-seeks-safe-Hormuz-passage-for-Iraqi-oil-exports
Gold Retreats As Oil Climbs
2026-08-18 Shafaq News Gold prices came under pressure on Tuesday from higher Treasury yields and a spike in oil prices, while traders awaited minutes of the U.S. Federal Reserve's July policy meeting for clues on the outlook for interest rates.
Spot gold was down 0.5% at $4,391.14 per ounce, as of 0423 GMT, while U.S. gold futures for December delivery dropped 0.6% to $4,446.70.
Yields on the benchmark 10-year U.S. Treasury note extended gains, raising the opportunity cost of holding non-yielding bullion.
Oil prices also edged higher after Iran said it would shift to a "fully offensive" military posture following a breakdown in efforts to negotiate a permanent end to the war with the United States, while Washington ruled out extending a temporary ceasefire agreement.
Oil prices will remain one of the key factors keeping gold under pressure as situation in the Middle East continues to look uncertain, ANZ analyst Soni Kumari said.
Traders' expectations around Fed policy rates are going to be important for gold, with a focus on technical levels, Kumari added.
Elevated energy prices tend to raise inflationary fears and bolster expectations of higher interest rates by the Fed. While gold is typically seen as a hedge against inflation, higher interest rates tend to diminish bullion's appeal.
However, market pricing for a September quarter-point hike flipped to a nearly 65% chance of a "hold" after unexpected job losses in July, lower-than-expected consumer price inflation and weaker retail sales.
Investors are also awaiting minutes from the Fed's most recent policy meeting, with the release scheduled for Wednesday.
Spot gold may test a support at $4,381, a break below could open the way toward the $4,320 to $4,351 range, according to Reuters technical analyst Wang Tao.
Among other metals, spot silver slipped 1% to $65.11 per ounce, platinum lost 1.2% to $1,748.56, while palladium fell 1.2% to $1,317.01. (REUTERS) https://www.shafaq.com/en/Economy/Gold-retreats-as-oil-climbs
Basrah Crude Gains On US-Iran Supply Concerns
2026-08-18 Shafaq News- Basrah Iraq’s Basrah Heavy and Basrah Medium crude prices rose on Tuesday, tracking gains in global oil markets as concerns over Middle East supply intensified amid fading prospects for an agreement to end the US-Iran war.
Basrah Heavy gained $0.39, or 0.64%, to $61.77 per barrel, while Basrah Medium rose $0.39, or 0.60%, to $65.07.
Globally, Brent crude futures climbed 62 cents, or 0.7%, to $91.49 a barrel, after rising on Monday to their highest since July 30. US West Texas Intermediate crude futures were up 75 cents at $85.25 a barrel, after earlier rising more than 1% to $85.37, their highest since July 31.
https://www.shafaq.com/en/Economy/Basrah-crude-gains-on-US-Iran-supply-concerns
USD/IQD Exchange Rates Dip In Baghdad, Climb In Erbil
2026-08-18 Shafaq News- Baghdad/ Erbil The US dollar hovered around 154,000 Iraqi dinars per $100 in Baghdad and Erbil on Tuesday morning, edging lower in the capital while rising in the Kurdistan Region.
In Baghdad, the dollar fell to 153,850 dinars per $100 at the Al-Kifah and Al-Harithiya central exchanges, according to Shafaq News market survey, down from 154,000 on Monday.
Exchange shops in the capital sold the dollar at 154,250 dinars and bought it at 153,250 per $100.
In Erbil, the dollar rose, with exchange shops selling at 154,250 dinars per $100 and buying at 154,150 dinars per $100.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-dip-in-Baghdad-climb-in-Erbil-9
2026 Hormuz Closure Tops Historic Oil Supply Disruptions
2026-08-18 Shafaq News- Vancouver The closure of the Strait of Hormuz in March 2026 triggered the largest oil supply shock on record, cutting global supplies by about 10.1 million barrels per day (bpd) and far surpassing disruptions from major wars and oil crises over the past five decades, according to a ranking published by Visual Capitalist.
The Hormuz disruption was about 80% larger than the estimated 5.6 million-bpd supply loss during the Iranian Revolution between November 1978 and April 1979, which ranked second.
The Arab oil embargo and Iraq’s 1990 invasion of Kuwait ranked third and fourth, respectively, with each disruption reducing global oil supplies by about 4.3 million bpd.
Iran-Iraq war followed in fifth place, with losses of 4.1 million bpd between October 1980 and January 1981.
The 2003 Iraq war ranked sixth, reducing supplies by about 2.3 million bpd between March and December. Libya’s civil war in 2011 came seventh, with a loss of roughly 1.5 million bpd.
Hormuz, through which roughly 20% of the world’s oil passes, has remained largely closed under Iranian restrictions since Feb. 28, following the start of the US-Israeli war and disrupting regional energy flows.
The corridor briefly reopened after a US-Iran memorandum of understanding (MoU) took effect on June 18, but closed again amid renewed military escalation, with Tehran maintaining that the waterway remains under Iranian control.
Read more: Cargo transit through Hormuz plunges near total halt
https://www.shafaq.com/en/Economy/2026-Hormuz-closure-tops-historic-oil-supply-disruptions