Iraq Economic News and Points To Ponder Tuesday Morning 7-14-26
US-Iran Escalation Lifts Oil Nearly 3%
2026-07-14 01:35 Shafaq News Oil prices rose nearly 3% on Tuesday to their highest in four weeks, as the U.S. reimposed its naval blockade of Iran while the two countries stepped up attacks in the Strait of Hormuz, heightening uncertainty about energy flows.
Brent crude futures were last up $1.50, or 1.8%, to $84.80 per barrel at 0330 GMT, while U.S. West Texas Intermediate crude rose $1.70, or 2.2%, to $79.84 a barrel.
Both contracts earlier rose more than $2 a barrel before paring some gains, while Brent had surged 9.6% in the previous session, its biggest daily gain since May 2020.
Oil prices are now at their highest since the two countries signed a memorandum of understanding to end the war on June 17.
The U.S. military carried out a third consecutive night of strikes against Iran on Monday, as U.S. President Donald Trump reinstated a blockade of Iranian shipping and proposed charging a 20% fee to guard the Strait of Hormuz.
"The latest escalation, including the U.S. reinstatement of the blockade and Iranian responses, has clearly injected fresh risk into the market," KCM Trade chief market analyst Tim Waterer said.
"While a full closure hasn't occurred, the competing objectives of both sides have made the supply picture highly uncertain," he added.
Amid the strikes, two United Arab Emirates tankers were hit by two Iranian cruise missiles in the southern lane of the Strait of Hormuz in Omani territorial waters, the UAE Ministry of Defence said on Monday, killing one Indian crew member and wounding eight others.
Shipping data on Monday also showed the number of tankers transiting the Strait of Hormuz fell in the past day to the lowest level in two months.
"The key variable to monitor is the physical movement of crude through the Strait of Hormuz. Any meaningful blockage of tanker traffic, prolonged reduction in vessel movements, or disruption to export flows would likely trigger another leg higher in oil prices," said Phillip Nova analyst Priyanka Sachdeva.
"Conversely, if barrels continue to move despite the military escalation, part of the current geopolitical premium could gradually fade."
Elsewhere, Yemen's Houthi movement fired missiles at Saudi Arabia after accusing the kingdom of bombing an airport under its control on Monday.
"If the Houthis extend their attacks to Saudi's crude products in the Red Sea, it could put (further) uncertainties on crude flows from the region," Simon Wong, a portfolio manager at Gabelli Funds, said in a note.
Meanwhile, U.S. crude oil stockpiles were expected to have fallen last week, while gasoline and distillate stocks likely rose, a preliminary Reuters poll showed on Monday. (REUTERS)
https://www.shafaq.com/en/Economy/US-Iran-escalation-lifts-oil-nearly-3
Basrah Crude Leads Global Oil Gains Amid Market Rally
2026-07-14 02:23 Shafaq News- Basrah Iraq's Basrah Heavy and Basrah Medium crude grades posted the strongest gains among major benchmark crudes on Tuesday, tracking a broader rally in global oil markets driven by improved trading sentiment.
Basrah Heavy rose to $53.08 a barrel, up $4.81 or 9.97%, while Basrah Medium climbed to $55.38 a barrel, gaining $5.01 or 9.95%, according to market data.
International benchmarks also advanced, with US West Texas Intermediate (WTI) rising 1.89% to $79.51 a barrel and Brent crude adding 1.68% to $84.70.
Other regional grades posted gains. Saudi Arab Light rose 4.14% to $71.89 a barrel, Kuwait Export Blend climbed 6.08% to $76.03, and the UAE's Murban crude gained 3.05% to $80.52.
In contrast, the OPEC Reference Basket fell 2.19% to $76.25 a barrel, while Dubai crude slipped 1.77% to $69.24.
https://www.shafaq.com/en/Economy/Basrah-crude-leads-global-oil-gains-amid-market-rally
Gold Rises Ahead Of Key US Inflation Report
2026-07-14 03:07 Shafaq News Gold rose on Tuesday after hitting a two-week low earlier in the session, as markets awaited key U.S. inflation data, with escalating U.S.-Iran tensions driving oil prices higher and reinforcing expectations of further Federal Reserve rate hikes.
Spot gold was up 0.8% at $4,031.43 per ounce by 0611 GMT, recovering from its lowest level since July 1.
U.S. gold futures for August delivery gained 0.8% at $4,037.80.
Gold shed about 3% in the previous session, its biggest daily percentage decline in more than a month, as continued fighting between the U.S. and Iran drove oil prices to a one-month high.
While gold is often viewed as a hedge against inflation, higher rates tend to weigh on the non-yielding metal by increasing the appeal of interest-bearing assets.
"You have a situation where the markets probably don't want to commit. They have a big batch of event risks in front of them. There's, of course, the Warsh testimony and then the CPI print, so there's a lot for people to look at in addition to the headlines out of the Middle East," said Ilya Spivak, head of global macro at Tastylive.
Investors will closely watch June U.S. CPI data due later in the day for fresh clues on inflation and the Fed's policy path, with PPI data and Fed Chair Kevin Warsh's first semi-annual testimony before Congress this week also in focus.
The U.S. central bank may need to raise interest rates "in the near term" if coming data show inflation continuing well above the 2% target, Fed Governor Christopher Waller said on Monday.
Traders have ramped up bets on a September U.S. interest rate hike, with CME Group's FedWatch Tool showing the probability rising to around 76% from 57% a week ago.
Elsewhere, spot silver rose 0.9% to $58.17 per ounce, after earlier touching a two-week low.
Platinum gained 0.3% to $1,610.13 and palladium climbed 1.9% to $1,271.22. (REUTERS)
https://www.shafaq.com/en/Economy/Gold-rises-ahead-of-key-US-inflation-report
USD/IQD Exchange Rates Climb In Baghdad, Erbil
2026-07-14 03:59 Shafaq News- Baghdad/ Erbil The US dollar opened Tuesday's trading higher against the Iraqi dinar, hovering around 154,000 dinars per 100 dollars on Baghdad's main currency exchanges.
According to a Shafaq News market survey, the dollar traded on the Al-Kifah and Al-Harithiya central exchanges at 153,700 dinars per 100 dollars, up from 153,600 dinars in the previous session.
In Baghdad, exchange shops sold the dollar at 154,250 dinars per 100 dollars and bought it at 153,250 dinars.
In Erbil, the dollar also strengthened, selling at 153,600 dinars per 100 dollars and buying at 153,500 dinars.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-climb-in-Baghdad-Erbil-9-9
Baghdad Pushes US Investment Deals During Washington Visit
2026-07-14 05:30 Shafaq News- Washington Iraqi Prime Minister Ali al-Zaidi's official visit to the United States marks the most significant such trip by an Iraqi government since 2003, Iraqi government spokesperson Haidar al-Aboudi said on Tuesday.
Speaking to Shafaq News, al-Aboudi said Baghdad views the visit as the start of a phase built on investment, energy, and economic development, and that this track “rather than the military and security cooperation that defined relations over the past two decades, is what will sustain ties between Baghdad and Washington.”
Al-Zaidi arrived in Washington on Monday at the head of a high-level delegation that includes ministers, officials, investors, and company executives, on an official visit scheduled to last seven days.
Read more: Iraq's energy vulnerability: When a petro-state has no buffer
According to al-Aboudi, the government intends to use current political momentum to open Iraqi strategic projects to major American firms, particularly in oil, energy, and infrastructure. Several large US companies have already responded to that approach, and some have entered understandings with the Iraqi side, he said, adding that the outcomes of those agreements will be announced during the visit.
On restricting weapons to state control, al-Aboudi said the government has treated the file as a founding priority, framing it not only as a security matter but as a precondition for attracting foreign investment.
The current government has moved from pledges to implementation on that file, unlike its predecessors, according to al-Aboudi, who linked progress on internal security directly to investor confidence, arguing that “establishing state authority reassures international companies and lays the groundwork for stronger economic relations, with the United States first among them.”
Read more: Al-Zaidi at the White House: A sustainable partnership or continued crisis management?
https://www.shafaq.com/en/Economy/Baghdad-pushes-US-investment-deals-during-Washington-visit