Iraq Economic News and Points To Ponder Tuesday Afternoon 7-7-26
Oil Prices Rise On Demand Watch
2026-07-07 01:18 Shafaq News Oil prices edged higher on Tuesday, though gains were capped as traders looked beyond easing geopolitical tensions in the Middle East and turned their attention to supply increases and demand prospects.
Brent crude futures gained 38 cents, or 0.5%, to $72.37 a barrel, while U.S. West Texas Intermediate crude rose 30 cents, or 0.4%, to $68.85 a barrel as of 0350 GMT, after settling down at around pre-Iran war levels on Monday.
"The steps towards recovery in supply have eased the immediate risk premium, but the market remains wary of putting too much faith in the stability of the current truce given the on again-off again nature of U.S.-Iran relations," said Tim Waterer, chief market analyst at KCM Trade.
"We will be watching for early signs of demand response, particularly from China. The market has priced in a lot of the positive supply news, so the next leg in oil prices will depend on whether physical reality matches the optimistic headlines."
President Donald Trump said on Monday the U.S. would either reach a deal with Iran or "finish the job," renewing his threat of military action as Tehran projects defiance following the funeral of former Supreme Leader Ayatollah Ali Khamenei.
Investors have been keeping a close eye on talks between the U.S. and Iran over the fate of shipping through the Strait of Hormuz while tracking the recovery in Gulf oil exports.
On Monday night, Iran's Revolutionary Guards fired at least two missiles at commercial ships transiting the Strait of Hormuz, Axios reported, citing two U.S. officials. The commercial ships suffered significant damage but had no casualties, the report said.
On Tuesday, Japanese-owned supertankers carrying Saudi Arabian crude were heading to the Strait of Hormuz to exit the Gulf, shipping data showed, joining a fleet of previously stranded vessels that left a day earlier.
Despite the recent surge in strait activity, oil flow recovery is proving slower than expected, ANZ analysts said in a note.
"The initial rebound in tanker transits through the Strait of Hormuz has stalled, with vessel crossings remaining in single digits and no sustained recovery evident," they said.
"While the interim U.S.-Iran agreement has reduced immediate geopolitical risks, shipping operators remain cautious, limiting the speed at which crude exports can return to normal levels."
Meanwhile, the United Arab Emirates raised crude output above 3.8 million barrels per day in June, its highest since April 2020 and above pre-Iran war levels, after leaving OPEC+ production quotas in May, according to Reuters estimates.
The Organization of the Petroleum Exporting Countries and its allies including Russia agreed on Sunday to further increase output targets by 188,000 bpd from August, on top of similar increases for June and July.
Saudi Arabia cut the August official selling price (OSP) for its flagship Arab Light crude to Asia to $1.50 a barrel below the Oman/Dubai average, an $11 cut from the previous month and the biggest drop in more than two decades, according to a Saudi Aramco pricing statement on Monday.
(REUTERS) https://www.shafaq.com/en/Economy/Oil-prices-rise-on-demand-watch
Basrah Crude Prices Climb With Global Oil Rally
2026-07-07 02:44 Shafaq News- Baghdad Iraq's two Basrah crude grades rose in Tuesday trading, tracking a broader rally across global benchmarks.
Basrah Medium gained 67 cents to reach $60.76 per barrel, a rise of 1.17%. Basrah Heavy climbed by the same margin, adding 67 cents to settle at $57.86 per barrel, up 1.12%.
As of 0350 GMT, Brent futures were up 38 cents, or 0.5%, at $72.37 a barrel, while US West Texas Intermediate rose 30 cents, or 0.4%, to $68.85 a barrel, after both benchmarks settled near pre-Iran war levels on Monday.
Emirati Murban crude rose 0.30% to $66.68 per barrel, while Saudi Arab Light advanced 0.85% to settle at $75.68 per barrel.
The OPEC reference basket stood at $77.37 per barrel, according to the latest official data.
https://www.shafaq.com/en/Economy/Basrah-crude-prices-climb-with-global-oil-rally
Iraq's Central Bank Cuts Traveler Dollar Allowance To $2,000
2026-07-07 03:18 Shafaq News- Baghdad (Updated at 13:53) Iraq's Central Bank (CBI) reduced the foreign currency allowance for travelers from $3,000 to $2,000 per trip, an informed source told Shafaq News on Tuesday.
The reduction applies to all Iraqi citizens departing through airports and border crossings, regardless of purpose, tourism, medical treatment, study, Hajj and Umrah pilgrimage, or business travel, the source said. The delivery mechanism remains unchanged: travelers collect their allowance through government and private banks or licensed exchange companies after their passport is stamped and before departure.
Travelers requiring additional funds for exceptional medical or business circumstances are directed to use electronic payment cards loaded with supplementary balances, the source added. Spending outside Iraq through these cards will be processed at the official exchange rate of 1,320 dinars per dollar.
Economic analyst Mohammed al-Hassani told Shafaq News that travelers needing more than $2,000 for travel expenses may turn to unofficial exchange channels, which could raise demand and put pressure on the exchange rate if supply does not keep pace.
The impact, however, may be limited and temporary, al-Hassani added, depending on the volume of affected travelers and the CBI's ability to expand the use of electronic payment cards abroad, a policy the bank has been actively promoting. Sustained card adoption could reduce pressure on the parallel market, and any uptick in the dollar rate would likely be short-lived if accompanied by regulatory measures to ensure currency availability, he said.
No official statement has been issued by the Central Bank confirming the directives as of publication time.
Dollar Stabilizes In Baghdad, Rises In Erbil
2026-07-07 10:01 Shafaq News- Baghdad/ Erbil The US dollar closed Tuesday’s trading mixed in Iraq, hovering around 153,000 dinars per 100 dollars.
According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 153,000 dinars per 100 dollars, unchanged from the morning session.
In the Iraqi capital, exchange shops sold the dollar at 153,500 dinars and bought it at 152,500 dinars, while in Erbil, selling prices rose to 153,050 dinars and buying prices stood at 153,000 dinars.
https://www.shafaq.com/en/Economy/Dollar-stabilizes-in-Baghdad-rises-in-Erbil-4
Minister Of Finance: The First Phase Of The Budget Of Programs Includes The Electricity Sector And The Governorates Of Diwaniyah And Salahuddin
Money and business Economy News – Baghdad Iinister of Finance Faleh Sari said that the first phase of the budget of programs and performance will include the electricity sector and the governorates of Diwaniyah and Salahuddin, provided that the expansion will be gradually to include all state institutions during the next three years.
This came during a meeting held by the Minister with the Parliamentary Finance Committee, on Tuesday, in the framework of early coordination to prepare the next draft budget in cooperation with the House of Representatives and the World Bank.
He explained that the choice of the Ministry of Electricity came because this sector has drained large amounts over the past years without achieving the desired results, which requires the adoption of the budget of programs to ensure that spending is directed towards sustainable solutions and measurable results.
He added that the selection of the governorates of Diwaniyah and Salahuddin comes because of their need to push the wheel of service and development projects, allowing the channeling of resources according to actual priorities and achieving the best benefit from financial allocations.
The minister put the members of the committee in the form of the current financial situation, and the measures taken by the ministry to meet the financial obligations, in addition to its efforts to maximize non-oil revenues, to ensure the continued financing of projects and basic services for citizens.
The meeting witnessed a consensus on the priorities of financial reform, with emphasis on the continuation of coordination between the executive and legislative authorities to make the next draft budget a success and achieve the objectives of financial and administrative reform. https://www.economy-news.net/content.php?id=71111