Iraq Economic News and Points To Ponder Wednesday Morning 3-18-26
Iraq Resumes Oil Exports To Turkiye’s Ceyhan Port After Erbil-Baghdad Agreement
2026-03-18 Shafaq News- Baghdad/ Erbil Iraq has begun exporting crude oil from Kirkuk to Turkiye’s Ceyhan port, with initial output set at 250,000 barrels per day, the North Oil Company said on Wednesday.
The company confirmed that the Saralu pumping station has been activated with an initial export capacity of 250,000 barrels per day.
The move follows a recent agreement between the federal government in Baghdad and the Kurdistan Regional Government (KRG) to resume exports from Kirkuk and the Kurdistan Region through the Kurdistan–Ceyhan pipeline.
Iraq’s oil exports have recently declined amid regional tensions and disruptions affecting shipping routes, including reduced flows through the Strait of Hormuz.
Oil Crash Puts Iraq On Downgrade Watch
2026-03-18 Shafaq News- Baghdad Iraq faces a potential credit downgrade after oil output plunged to about 1.2 million barrels per day (bpd) from 4.2 million bpd amid regional conflict, S&P Global said on Wednesday.
Oil accounts for about 60% of GDP, 90% of government revenue, and 95% of exports, leaving the economy highly exposed to supply shocks, according to official Iraqi government data.
In its report, S&P placed Iraq’s “B-” sovereign rating on CreditWatch negative, warning that disruptions linked to the Strait of Hormuz could strain fiscal and external stability. Lower output will cut revenue, tighten spending, and likely force the government to draw on reserves.
Foreign reserves stood at about $97 billion in mid-February, covering roughly 10 months of external payments, with part held in gold, supporting debt servicing, including Iraq’s $2.8 billion bond.
The drop follows disruptions to shipping through the Strait of Hormuz after Iran imposed restrictions in response to US-Israeli strikes. However, prolonged disruption could also weaken Iraq’s financial position through 2026, increasing downgrade risk. https://www.shafaq.com/en/Economy/Oil-crash-puts-Iraq-on-downgrade-watch
USD/IQD Exchange Rates Edge Higher In Baghdad And Erbil
2026-03-18 Shafaq News- Baghdad/ Erbil The US dollar opened Wednesday’s trading higher in Iraq, hovering near 155,000 dinars per 100 dollars.
According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 155,000 dinars per 100 dollars, up from the previous session’s 154,500 dinars.
In the Iraqi capital, exchange shops sold the dollar at 155,500 dinars and bought it at 154,500 dinars, while in Erbil, selling prices stood at 154,900 dinars and buying prices at 154,800 dinars.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-edge-higher-in-Baghdad-and-Erbil
Gold Prices Fall In Baghdad And Erbil
2026-03-18 Shafaq News- Baghdad/ Erbil On Wednesday, gold prices declined 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 1.047 million IQD per mithqal (equivalent to five grams) for 21-carat Gulf, Turkish, and European gold, with a buying price of 1.043 million IQD. The same gold had sold for 1.088 million IQD on Tuesday.
The selling price for 21-carat Iraqi gold stood at 1.017 million IQD, with a buying price of 1.013 million IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 1.050 million and 1.060 million IQD, while Iraqi gold sold for between 1.020 million and 1.030 million IQD.
In Erbil, gold prices also declined, with 22-carat gold sold at 1.128 million IQD per mithqal, 21-carat gold at 1.078 million IQD, and 18-carat gold at 923,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-fall-in-Baghdad-and-Erbil-6-5
Kirkuk Oil Flows Cover Only 6% Of Iraq’s Output Despite $24M/Day Gains
2026-03- Shafaq News- Baghdad Iraq is generating about $24 million a day from resumed Kirkuk oil exports via the Kurdistan pipeline, but the flow covers just 6% of total output, limiting its impact as regional disruptions strain supply routes, Eco Iraq Observatory said on Wednesday.
In a statement, the Observatory said the estimate reflects shipments of roughly 200,000 barrels per day at $100 per barrel, after deducting transport costs of about $3.15 per barrel, shared between domestic operators and transit through Turkiye to Ceyhan.
Although the route bypasses the Strait of Hormuz, where Iran’s restrictions following US-Israeli strikes have slowed tanker traffic and raised costs, Eco Iraq noted the pipeline provides only partial relief without broader export diversification.
Flows resumed under a Baghdad-Erbil agreement, with capacity expected to reach 250,000 barrels per day, offering a limited but immediate workaround to maritime risk.
Oil Prices Pull Back As Iraq-Turkiye Deal Offers Modest Supply Relief
2026-03-18 Shafaq News Oil prices fell more than $2 per barrel on Wednesday to pare some of Tuesday's sharp gains after the Iraqi government and Kurdish authorities reached a deal to resume oil exports via Turkey's Ceyhan port, providing modest relief to concerns about supplies from the Middle East.
But with no signs of a de-escalation of the Iran conflict, which has left oil exports from the Middle East largely halted, Brent futures prices have settled above $100 per barrel for the prior four consecutive sessions.
After rising more than 3% on Tuesday, Brent futures retreated $2.26, or 2.19%, to $101.16 a barrel by 0429 GMT on Wednesday. U.S. West Texas Intermediate crude dropped $2.99, or 3.11%, to $93.22.
Iraq's oil minister Hayan Abdel-Ghani said oil flows from Ceyhan were expected to start at 0700 GMT on Wednesday, according to state media. Two oil officials said last week that Iraq was seeking to pump at least 100,000 barrels per day of crude through the port.
"The news provided some relief to the market. Any additional volume finding its way back to the market is valuable under the current situation, so prices moved down to reflect that," said LSEG senior analyst Anh Pham.
"But we are still in a $100 per barrel oil environment, and the crisis around the Strait of Hormuz shows no sign of stopping yet."
Oil production from Iraq's main southern oilfields, where most of its crude is produced and exported, has plunged 70% to just 1.3 million bpd, sources said on March 8, as the Iran conflict effectively shut the vital Strait of Hormuz through which some 20% of global oil passes.
Iran confirmed on Tuesday that its security chief Ali Larijani had been killed in an Israeli attack. He is the most senior figure targeted since Supreme Leader Ayatollah Ali Khamenei was killed on the first day of the U.S.-Israeli war at the end of February.
A senior Iranian official said Iran's new supreme leader had rejected de-escalation offers conveyed by intermediary countries.
The U.S. military said on Tuesday it had targeted sites along Iran's coastline near the Strait of Hormuz because Iranian anti-ship missiles posed a risk to international shipping there.
Larijani's death and the U.S. military's strikes on Iranian coastal positions near the Strait of Hormuz raised some hopes that the conflict could end sooner, said Mingyu Gao, chief researcher for energy and chemicals at China Futures.
U.S. crude stocks rose by 6.56 million barrels in the week ended March 13, market sources said, citing API figures on Tuesday.
A Reuters poll showed that U.S. crude oil stockpiles were expected to have risen by about 380,000 barrels in the week to March 13. (Reuters) https://www.shafaq.com/en/Economy/Oil-prices-pull-back-as-Iraq-Turkey-deal-offers-modest-supply-relief-amid-Iran-conflict
Oil: Pumping And Exporting Kirkuk Oil Via Ceyhan Port Resumes At A Rate Of (250) Thousand Barrels
Today, 10:30 Baghdad-INA The Ministry of Oil announced on Wednesday the resumption of pumping and exporting Kirkuk oil through the Ceyhan port at a rate of 250,000 barrels per day.
In a statement received by the Iraqi News Agency (INA), the ministry said, "In implementation of the directives of the Prime Minister and the Deputy Prime Minister for Energy Affairs and Minister of Oil, and following up with the Undersecretary for Extraction Affairs, and with direct implementation by the Director General of the North Oil Company, and in the presence of a representative of the Ministry of Natural Resources in the Kurdistan Region, crude oil pumping operations have resumed through the Turkish port of Ceyhan, after a period of suspension that posed a significant challenge to the oil sector."
The statement added that "this is the result of the agreement concluded between the federal government and the Kurdistan Regional Government, which contributed to reactivating one of the most important strategic export outlets and enhancing the flexibility of the Iraqi oil export system."
The ministry indicated that "the North Oil Company has begun operating the Saralu pumping station, signaling the resumption of pumping and exporting Kirkuk oil to the Ceyhan port, with an initial export capacity of 250,000 barrels per day, this step reflects the integrated efforts of all relevant parties to achieve shared national goals."
It explained that "the resumption of exports embodies a technical and administrative success that reflects the scale of the field and engineering efforts exerted by national personnel to ensure the readiness of the infrastructure and the continuity of operations with high efficiency."
According to the statement, the ministry affirmed that "this strategic step represents the pivotal role of the Kirkuk oil fields in supporting the national economy, demonstrating once again that challenges, no matter how great, cannot stand in the way of the determination and perseverance of the workers in this vital sector, who continue to work as one team to achieve accomplishments and serve Iraq." https://ina.iq/en/economy/46753-oil-pumping-and-exporting-kirkuk-oil-via-ceyhan-port-resumes-at-a-rate-of-250-thousand-barrels.html