Iraq Economic News and Points To Ponder Tuesday Afternoon 9-1-26

Oil Prices Climb Above $91 On Renewed US-Iran Strikes

2026-09-01 Shafaq News   Oil prices gained around $1 on Tuesday as the resumption of fighting between the U.S. and Iran in the Middle East renewed fears of supply disruptions from the world's key crude-producing region.

Brent crude futures were up $1.05, or 1.2%, to $91.54 a barrel at 0455 GMT, while U.S. West Texas Intermediate crude was up $1.27, or 1.5%, to $87.03.

In the previous session, Brent closed up 2.7%, at one point reaching its highest since August 25, and WTI settled up 2.8%, touching its highest since August 21.

On Monday, U.S. President Donald Trump threatened further strikes against Iran following the first exchange of direct ⁠attacks between the countries in a month on Sunday, raising tensions in a conflict that had recently shifted into an economic standoff.

"These bring the potential for Iranian retaliation back into the equation. That in turn raises the prospect of damage to energy infrastructure around the Gulf and adds fresh uncertainty for shipping through the Strait of Hormuz. Both of those risks are being reflected in the firmer tone in crude prices," said Tim Waterer, chief market analyst at KCM.

On Monday, the number of visible commodity vessels transiting the Strait of Hormuz held at five per day, below the 10-day average of around 14, shipping data from Kpler showed. None of the five ships were liquid tankers.

Efforts by mediators including Qatar and Oman to broker a ⁠deal to reopen the Strait of Hormuz, which carried about a fifth of global oil supplies before the war erupted in late February, have so far failed to gain traction.

Iran shut the waterway after the U.S. and Israel attacked the country on February 28.

Highlighting the risks that remain to shipping and oil supply, the United Kingdom Maritime Trade Operations agency (UKMTO) said on Tuesday a tanker reported being struck ⁠by three projectiles while sailing out of the Strait of Hormuz. No casualties or environmental impacts were reported.

"Despite satellite tracking firms suggesting oil flowing through Hormuz is around 6 million barrels per day, that is well below pre-conflict levels," said ANZ analysts in a ⁠note.

"In the meantime, the buffers the global oil market has been relying on are becoming exhausted. U.S. inventories are nearing minimum levels, while China's ability to keep imports low will be tested as seasonal demand picks up."

Crude oil ⁠inventories in the U.S. Strategic Petroleum Reserve declined by about 3.1 million barrels last week, leaving stockpiles at 286.6 million barrels.

Analysts polled by Reuters in August expect oil prices to remain above $80 a barrel in 2026 as shipping disruptions continue.  (REUTERS)

https://www.shafaq.com/en/Economy/Oil-prices-climb-above-91-on-renewed-US-Iran-strikes

Basrah Crude Prices Jump More Than 7%

 2026-09-01 Shafaq News– Basrah   Iraq’s Basrah crude prices rose on Tuesday, with Basrah Heavy gaining more than 7% alongside a recovery in global oil benchmarks.

Basrah Heavy climbed $5.91, or 7.93%, to $80.43 per barrel, while Basrah Medium gained $5.91, or 7.59%, to $83.73.

In global markets, Brent crude rose $1.05, or 1.2%, to $91.54 a barrel. U.S. West Texas Intermediate (WTI) gained 1.5% to around $87.03.

Murban crude rose to $98.45 a barrel, up $2.70, or 2.82%, while the OPEC basket stood at $89.59, up $2.28, or 2.61%.

https://www.shafaq.com/en/Economy/Basrah-crude-prices-jump-more-than-7

Dollar Climbs In Baghdad, Erbil Markets

2026-09-01 Shafaq News- Baghdad/ Erbil   The US dollar opened Tuesday’s trading higher in Iraq, hovering around 154,000 dinars per 100 dollars.

According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 154,250 dinars per 100 dollars, up from the previous session’s 154,000 dinars.

In the Iraqi capital, exchange shops sold the dollar at 154,750 dinars and bought it at 153,750 dinars, while in Erbil, selling prices stood at 154,100 dinars and buying prices at 154,000 dinars

https://www.shafaq.com/en/Economy/Dollar-climbs-in-Baghdad-Erbil-markets-7

Iraq Orders Generator Fuel Subsidy For September

2026-09-01 Shafaq News- Baghdad   Iraqi Prime Minister Ali Faleh Al-Zaidi on Tuesday ordered subsidized fuel supplies for private generators throughout September, according to a statement from the PM's Media Office, hours after operators in Baghdad began shutting down their units in protest over Oil Ministry support.

Private generators will receive 40 liters of fuel per kilowatt-hour at 400 Iraqi dinars (about $0.30) per liter, while maintaining the currently approved operating schedule.

Al-Zaidi also directed that electricity be supplied for at least 20 hours a day through alternating operation between the national grid and private generators.

Prime Minister Ali Faleh Al-Zaidi Directs Provision of Fuel to Private Generators at Subsidized Price for September

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Prime Minister Ali Faleh Al-Zaidi directed today, Tuesday, that private generators be supplied with fuel at a rate of 40 liters per kilowatt-hour and at a subsidized price of 400 Iraqi dinars per liter throughout the month of September.

The Prime Minister also directed adherence to the currently approved operating hours, with electricity supplied for no less than 20 hours per day through alternating operation between the national power grid and private generators, ensuring a stable and continuous electricity supply to citizens.    Media Office of the Prime Minister    September 1, 2026

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Generator owners in Baghdad began shutting down their units at midnight on Tuesday, about two hours after the Oil Ministry told Shafaq News that it prioritizes fuel supplies to residential generator operators, with diesel allocations tied to the number of hours of electricity supplied by the national grid.

Read more: Private generator operators threaten Iraq-wide shutdown in September

https://www.shafaq.com/en/Economy/Iraq-orders-generator-fuel-subsidy-for-September

Gold Prices Fall In Baghdad, Erbil Markets

2026-09-01 Shafaq News- Baghdad/ Erbil   On Tuesday, gold prices hovered around 950,000 IQD per mithqal in Baghdad and Erbil markets, according to a Shafaq News market survey.

Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 960,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 956,000 IQD. The same gold had sold for 965,000 IQD on Monday.

The selling price for 21-carat Iraqi gold stood at 930,000 IQD, with a buying price of 926,000 IQD.

In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 960,000 and 970,000 IQD, while Iraqi gold sold for between 930,000 and 940,000 IQD.

In Erbil, 22-carat gold was sold at 984,000 IQD per mithqal, 21-carat gold at 940,000 IQD, and 18-carat gold at 807,000 IQD.

https://www.shafaq.com/en/Economy/Gold-prices-fall-in-Baghdad-Erbil-markets-5-5

Iran's Toman Plummets Past 210K Per Dollar

2026-09-01 Shafaq News- Tehran   Iran's toman has lost more than half its value against the dollar in a year, with the US currency climbing above 210,000 tomans from around 95,800 tomans a year ago, according to Tejarat News, a website that tracks free-market exchange rates.

The dollar is trading at more than 211,000 tomans in Iran's free market, up from about 207,000 a week earlier. The euro stood at around 245,000 tomans, while the British pound traded at about 285,000 tomans.

"The decline has accelerated as demand for foreign currency rises and access to international payment channels remains limited, putting further pressure on the currency," Tejarat News reported, noting that a weaker currency raises the cost of imported goods, raw materials and essential products.

On Aug. 24, US Treasury Secretary Scott Bessent unveiled "Operation Economic Outcast," targeting nearly 60 Iran-linked individuals, entities and vessels and widening potential secondary sanctions across sectors including digital assets, technology, gold, aviation and shipping.

Iran is also contending with high inflation. The Statistical Center of Iran reported annual inflation of 66% in July, with prices 87.9% higher than a year earlier and food inflation at 128%.

https://www.shafaq.com/en/Economy/Iran-s-toman-plummets-past-210K-per-dollar