Iraq Economic News and Points To Ponder Wednesday Afternoon 8-26-26
Oil falls as Iran-Oman talks fuel Hormuz hopes
2026-08-26 Shafaq News Oil prices dropped about 2% on Wednesday, adding to the previous session's losses, on fresh hopes the Strait of Hormuz could reopen after Iran said it had resumed talks with neighbour Oman on managing the strategic waterway.
Brent crude futures fell $1.78, or 2.0%, to $86.80 a barrel by 0027 GMT, while U.S. West Texas Intermediate crude futures were down $1.49, or 1.8%, at $80.87. Both benchmarks lost more than 3% on Tuesday.
"The market continues to react to developments surrounding navigation through the Strait of Hormuz, and hopes for progress in talks between Iran and Oman have triggered selling," said Mitsuru Muraishi, an analyst at Fujitomi Securities.
"That said, uncertainty over the outlook has prompted bargain buying, limiting further losses, and prices are likely to remain range-bound for the time being," he added.
Iran said it had restarted talks with Oman to manage the Strait as it faces heightened economic pressure from U.S. President Donald Trump.
Iran and Oman have been in on-and-off talks for weeks about controlling traffic through the waterway, which handled one-fifth of global oil and liquefied natural gas shipments before the war began in February.
The two countries said on Tuesday that they discussed "a joint temporary navigational corridor" through the strait and agreed to clear it of mines.
Despite the ongoing tensions, the U.S. is beginning to send personnel back to some diplomatic missions in the Middle East that were evacuated or downsized amid tensions with Iran, two people familiar with the matter told Reuters.
The move suggests Washington sees a lower risk of the conflict with Iran escalating in the near term, though some embassies will initially operate below full capacity.
On Monday, Washington expanded sanctions aimed at cutting off Iran's economic lifeline, threatening to punish countries that continue to do business with Tehran, though it said it would not impose penalties immediately.
Separately, an oil tanker was struck on Tuesday by an unidentified projectile and disabled about 9 nautical miles (17 km) northeast of Oman's Ash Shishah, which lies at the entrance to the strait, the United Kingdom Maritime Trade Operations said.
In the U.S., the American Petroleum Institute reported crude oil inventories rose by about 4.2 million barrels in the week ended August 21, market sources said.
Analysts polled by Reuters estimated crude oil stockpiles would rise by about 600,000 barrels on average. Official data from the EIA, the statistical arm of the U.S. Department of Energy, are due at 10:30 a.m. ET (1430 GMT) on Wednesday. (REUTERS) https://www.shafaq.com/en/Economy/Oil-falls-as-Iran-Oman-talks-fuel-Hormuz-hopes
Gold Retreats From Three-Month High Ahead Fed Clues
026-08-26 Shafaq News Gold eased on Wednesday after scaling a more than three-month high in the previous session, as investors awaited a key U.S. inflation report to gauge the Federal Reserve's interest-rate path.
Spot gold eased 0.3% to $4,642.74 per ounce, by 0410 GMT. Prices climbed to their highest since mid-May on Tuesday after last week's sharp gains following the U.S. Treasury's bond buyback announcement. U.S. gold futures rose 0.1% at $4,700.70.
The Fed's preferred inflation gauge, the U.S. Personal Consumption Expenditures (PCE) price index for July, is due at 1230 GMT. Attention is also on Fed Chairman Kevin Warsh's speech on Friday at the central bank's Jackson Hole symposium.
"For gold, the most supportive outcome would be softer-than-expected inflation combined with a dovish or balanced message from Warsh, reinforcing expectations for lower real yields and reducing the opportunity cost of holding a non-yielding asset," said Wael Makarem, financial markets strategists lead at Exness.
"A renewed deterioration in confidence around U.S. fiscal sustainability could also be important (for gold), particularly given the recent Treasury buyback plans and their impact."
Earlier this month, data showed an unexpected decline in U.S. nonfarm payrolls and in-line consumer inflation, tempering expectations of a September rate hike.
Traders are pricing in a 61.6% chance that the Fed will leave rates unchanged next month, according to the CME FedWatch Tool.
On the geopolitical front, Iran said it had restarted talks with neighbour Oman to manage the Strait of Hormuz, sending oil prices lower.
The global economy has weathered the Iran war energy shock better than feared, International Monetary Fund Managing Director Kristalina Georgieva said. However, she raised concerns about deteriorating fiscal conditions in some countries.
Spot gold may retest a resistance at $4,681, a break above which may trigger a gain into the range of $4,707 to $4,743, according to Reuters technical analyst Wang Tao.
Spot silver gained 0.9% to $69.26, platinum rose 0.4% to $1,865.09 and palladium firmed 1.3% to $1,343.75. (REUTERS)
https://www.shafaq.com/en/Economy/Gold-retreats-from-three-month-high-ahead-Fed-clues
Iraqi Crude Prices Fall More Than 6%
2026-08-26 Shafaq News- Baghdad Iraqi crude oil prices fell by more than 6% on Wednesday, in tandem with a broader decline in global oil markets.
Basrah Heavy crude dropped to $77.92 a barrel, down $5.27 or 6.34%, while Basrah Medium fell to $81.22, a loss of $5.27 or 6.09%.
Internationally, Brent crude slipped to $86.80 a barrel, down $1.78, or 2.0%, while West Texas Intermediate fell to $80.87, down $1.49, or 1.8%.
Other regional grades also lost ground, though by varying margins. Murban crude fell 7.89% to $93.44 a barrel, Oman crude dropped 3.82% to $95.59, and Dubai crude edged down 0.19% to $90.10.
The Iraqi declines came amid a broader retreat in global crude prices, although losses varied by grade and region.
https://www.shafaq.com/en/Economy/Iraqi-crude-prices-fall-more-than-6
US Dollar Edges Lower In Baghdad And Erbil
2026-08-26 Shafaq News- Baghdad/ Erbil The US dollar edged lower against the Iraqi dinar in Baghdad and Erbil on Wednesday, hovering around 154,000 dinars per $100.
In Baghdad, the dollar fell to 154,250 dinars per $100 at the al-Kifah and al-Harithiya central exchanges, down slightly from 154,350 dinars on Tuesday, according to a Shafaq News market survey.
At currency exchange shops in Baghdad, the dollar was selling for 154,750 dinars per $100 and buying for 153,750 dinars.
In Erbil, the dollar was selling for 154,250 dinars per $100 and buying for 154,200 dinars.
https://www.shafaq.com/en/Economy/US-dollar-edges-lower-in-Baghdad-and-Erbil-2
Iraq Reviews State Banks Over Suspected Public Fund Losses
2026-08-26 Shafaq News- Baghdad Iraq is reviewing the performance of several state-owned banks and financial institutions as the government struggles with a cash crunch and delayed public-sector salaries, an informed source said Wednesday.
The reviews are examining alleged misuse of public funds, falling liquidity, and misleading reports submitted by some bank managers to senior officials, according to the source, who spoke to Shafaq News on condition of anonymity.
Government bodies are assessing how the banks are run, alongside management changes and recently launched investigations into cases said to have caused losses of public money and enabled corruption. Investigators are also examining why cash reserves once held at state banks have fallen, the source said, in preparation for legal and administrative measures.
The assessments weigh how far each management can support the government through the current strain, the source said, and how far each institution has moved toward digital systems. Continued reliance on paper procedures rather than electronic ones is among the concerns drawing official attention.
Some managers have submitted figures and reports that do not reflect actual operations, the source said, adding that field monitoring has exposed a wide gap between official reporting and performance on the ground. That gap is itself under review.
The measures are part of a broader government effort to reassess how state financial institutions perform and to strengthen efficiency, governance, and digital systems, the source said, given the financial pressure and the delay in paying salaries.
The review comes after a separate informed source told Shafaq News on Tuesday that state salaries could be delayed until the end of this month or early next month because funding for ministries and state bodies had not yet been released. Salaries are funded and paid out to state institutions sequentially, a process that takes several days. Several state banks are low on cash after their reserves fell, limiting their ability to fund state bodies or borrow domestically.
Read more: Iraq’s private banks: Capital Growth and the structural credit gap
https://www.shafaq.com/en/Economy/Iraq-reviews-state-banks-over-suspected-public-fund-losses