Iraq Economic News and Points To Ponder Wednesday Afternoon 6-17-26
Iraq's Basrah Crude Falls Over 3%
2026-06-17 Shafaq News- Basrah Iraq's two Basrah crude grades fell more than 3% on Wednesday, widening the discount against Arab producer benchmarks and pushing Basrah Heavy toward the $50 threshold.
Basrah Heavy dropped $2.05, or 3.83%, to $51.45 per barrel, while Basrah Medium declined $2.05, or 3.69%, to $53.55 per barrel.
Saudi Arab Light traded at $85.28 per barrel, Kuwait Export Crude at $94.84, the UAE's Murban at $71.81, and Qatar Land at $75.81, leaving both Basrah grades at least $18 below the cheapest Arab benchmark in Wednesday's session.
Brent crude fell to $78.71 per barrel, while West Texas Intermediate (WTI) declined to $75.71 per barrel.
https://www.shafaq.com/en/Economy/Iraq-s-Basrah-crude-falls-over-3
Oil Prices Dip Post US-Iran Pact
2026-06-17 Shafaq News Oil prices inched lower on Wednesday, extending the previous session's declines as investors assessed the U.S.-Iran peace deal, though uncertainty over the full resumption of shipping through the Strait of Hormuz limited further falls.
Brent crude futures dipped 16 cents, or 0.2%, to $78.80 a barrel by 0340 GMT, while U.S. West Texas Intermediate fell 25 cents, or 0.3%, to $75.80 a barrel.
Both benchmarks fell about 5% for a second straight session on Tuesday to stand at three-month lows, on hopes that a U.S.-Iran deal would allow oil flows through the Strait.
"Markets are broadly stripping out the embedded geopolitical risk premium in oil prices," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
"That said, the path toward normalisation remains far from straightforward. While political agreements may be progressing, physical tanker traffic through the Strait has yet to fully recover."
The deal would provide for the United States to lift its blockade of Iran's ports, while Tehran would allow oil tanker traffic through the Strait, effectively blocked since U.S. and Israel strikes on February 28.
"Oil markets retreated on expectations the Strait of Hormuz would reopen following the peace agreement, but traders held off further selling pending details," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment.
Before the closure, about a fifth of global crude oil and liquefied natural gas supplies flowed through the Strait.
Details of the interim peace deal began to emerge on Tuesday, with President Donald Trump saying it would rule out a nuclear weapon for Tehran and a U.S. official saying it would allow Iran to sell oil upon signing.
The memorandum of understanding, not yet public, extends by another 60 days a tenuous ceasefire agreed in April, so as to allow room for talks toward a permanent truce.
Still, industry officials say a full return to pre-war production and refining levels is likely to take weeks, months or even years.
Israel has distanced itself from both the April ceasefire and the latest U.S.-Iran pact, fuelling uncertainty about whether it will hold.
Israeli drone strikes targeted three vehicles in southern Lebanon on Tuesday, killing at least four and wounding others, Lebanon's National News Agency said, prompting a rare public rebuke from Trump.
China's crude oil throughput fell 9.1% in May on the year to its lowest in almost four years, data showed, also signalling that refiners were starting to draw on stockpiles amid the Iran war.
The American Petroleum Institute report showed U.S. crude stocks fell 8.3 million barrels in the week ended June 12, the sources said.
It exceeded expectations for a draw of 4.6 million barrels, with official numbers due from the Energy Information Administration at 10:30 a.m. ET (1430 GMT) on Wednesday.
(Reuters) https://www.shafaq.com/en/Economy/Oil-prices-dip-post-US-Iran-pact
Foreign Reserves In Iraq Shrink By $1.1B In One Week
2026-06-17 Shafaq News- Baghdad Iraq's foreign reserves fell 1.43% during the final week of May, extending their decline in the second quarter of 2026, according to data released by the Central Bank of Iraq.
Holdings stood at 118.947 trillion Iraqi dinars ($76.25B) on May 28, down 1.728 trillion dinars ($1.11B) from 120.675 trillion dinars ($77.36B) a week earlier. The figures also showed a broader monthly decline, with reserves reaching 127.152 trillion dinars ($81.51B) in April compared with 130.443 trillion dinars ($83.62B) in March.
Gold remained one of the main components of the country’s official reserves, with assets valued at 32.973 trillion dinars ($21.14B). https://www.shafaq.com/en/Economy/Foreign-reserves-in-Iraq-shrink-by-1-1B-in-one-week
USD/IQD Inches Higher At The Closure
2026-06-17 Shafaq News- Baghdad/ Erbil The US dollar closed Wednesday’s trading higher in Iraq, hovering around 156,200 dinars per 100 dollars.
According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 156,250 dinars per 100 dollars, up from the morning session’s 156,000 dinars.
In the Iraqi capital, exchange shops sold the dollar at 156,750 dinars and bought it at 155,750 dinars, while in Erbil, selling prices stood at 155,700 dinars and buying prices at 155,650 dinars.
The former Director General of the Central Bank of Iraq (CBI), Mahmoud Dagher, told Shafaq News on Wednesday that expectations of a potential devaluation of the Iraqi dinar amid economic pressures and existing debt obligations are contributing to higher demand for the US dollar and pushing up its exchange rate in the local market.
“Statements and leaks related to the Central Bank's policies or possible changes to the exchange rate often fuel speculation in the market.”
Dagher explained that such reports typically create uncertainty and encourage economic actors to increase their holdings of US dollars, placing additional pressure on the local currency and affecting market prices. “Expectations of a weaker dinar frequently trigger a broader shift among individuals and businesses toward converting savings into foreign currency.” https://www.shafaq.com/en/Economy/USD-IQD-inches-higher-at-the-closure
Gold Prices Trend Upward In Baghdad And Erbil
2026-06-17 Shafaq News- Baghdad/ Erbil On Wednesday, gold prices hovered around 950,000 IQD per mithqal in Baghdad and Erbil markets, according to a survey by Shafaq News Agency.
Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 948,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 944,000 IQD. The same gold had sold for 943,000 IQD on Tuesday.
The selling price for 21-carat Iraqi gold stood at 918,000 IQD, while the buying price reached 914,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 950,000 and 960,000 IQD, while Iraqi gold sold for between 920,000 and 930,000 IQD.
In Erbil, 22-carat gold was sold at 997,000 IQD per mithqal, 21-carat gold at 951,000 IQD, and 18-carat gold at 815,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-trend-upward-in-Baghdad-and-Erbil
IEA Projects 8M Bpd Supply Surge By 2027
2026-06-17 Shafaq News- Paris The International Energy Agency (IEA) said on Wednesday that the global oil market is expected to gradually recover from the disruption caused by the closure of the Strait of Hormuz, while warning of a significant supply surplus in 2027.
In its monthly oil market report, the Paris-based agency said the temporary agreement between the United States and Iran, which includes reopening the Strait of Hormuz and lifting US restrictions on Iranian ports, would help restore Gulf oil flows.
International Energy Agency – On X LINK
The IEA estimated that the recent conflict disrupted more than 14 million barrels per day (bpd) of Middle Eastern oil production, adding that Iranian exports are expected to fully resume once US restrictions are lifted.
The agency's preliminary outlook for 2027 projects global oil supply growth of around 8 million bpd, far outpacing expected demand growth of less than 2 million bpd.
According to the report, oil flows through the Strait of Hormuz began to recover in early June, driven by an increase in ship-to-ship transfers in the Gulf of Oman, lifting total Middle East supplies to around 12 million bpd from 9.6 million bpd in May. https://www.shafaq.com/en/Economy/IEA-projects-8M-bpd-supply-surge-by-2027
Hamas Reports Progress In Talks On Gaza Ceasefire Second Phase
2026-06-17 Shafaq News- Gaza The discussions with mediators and representatives of the Peace Council had produced broad agreements and significant progress toward completing the implementation of the Gaza ceasefire agreement and moving to its second phase, Hamas stated on Wednesday.
The group’s spokesperson Hazem Qassem said the talks addressed several key issues, including the entry of the National Committee into the Gaza Strip, the deployment of international forces, and the issue of Palestinian weapons.
“The discussions approached the weapons issue through a logical framework acceptable to all parties,” he added, clarifying that Hamas continues to hold meetings with mediators and Peace Council representatives, including Nikolay Mladenov, to finalize discussions and establish a framework for implementing the ceasefire agreement.
Qassem stressed that Hamas was demonstrating “flexibility and positivity” in addressing the various issues under discussion, to reach agreements that prioritize the interests of Palestinians in Gaza. He also said the movement's objectives include ending the “genocide” in Gaza, facilitating the delivery of humanitarian assistance, and beginning reconstruction efforts.
On Sunday, Hamas announced that it had submitted the response of Palestinian factions to a roadmap proposed by Mladenov, while reiterating its demand for a full Israeli withdrawal from the Gaza Strip.
Mladenov presented a 15-point roadmap on May 21 to implement a Gaza plan proposed by US President Donald Trump. The roadmap outlines mechanisms related to Gaza’s future, including reconstruction, disarmament, Israeli withdrawal, the role of an international stabilization force, and the rebuilding of the police apparatus.
The proposal also calls for the implementation of measures promised at the start of the ceasefire, including humanitarian aid, fuel deliveries, border crossings, and shelter provisions, as well as commitments contained in the Sharm El-Sheikh understandings, before advancing to the next stage.
Trump unveiled a 20-point plan on September 29, 2025, aimed at ending the war in Gaza. The proposal includes the release of Israeli hostages, the disarmament of Hamas, a phased Israeli withdrawal, the formation of a technocratic government, and the deployment of an international stabilization force.
The first phase of the plan entered into force on October 10, 2025. Hamas says it has fulfilled its obligations under the agreement, while accusing Israel of violations and of delaying the transition to the second phase.
Read more: Gaza Ceasefire - Phase 1: What we know so far
https://www.shafaq.com/en/Middle-East/Hamas-reports-progress-in-talks-on-Gaza-ceasefire-second-phase