Iraq Economic News and Points To Ponder Friday Morning 9-4-26
The Budget Comes First... Parliament Pledges To Cooperate With The Government To Approve It Quickly, And The Parliamentary Finance Committee Reveals To NINA The Size Of Iraq's Debt
Baghdad / NINA / The Parliamentary Finance Committee has tallied Iraq's external and internal debts, while affirming that the Parliament will cooperate with the government to pass the general budget law as quickly as possible.
Committee member, MP Ahmed Hama Rashid, stated to the National Iraqi News Agency ( NINA ) that "the Financial Management Law stipulates that the general budget be submitted by the government to Parliament annually by mid-October," noting that "the general budget law in each parliamentary session reflects the government's vision, and Parliament's role is limited to oversight and ratification."
He added that "Parliament will cooperate with the government to pass the general budget law as quickly as possible," explaining that "the program-based budget does not require much time for approval, and Parliament can pass it in less than two months."
Regarding the debt issue and spending limits, the Finance Committee member emphasized that "Iraq needs to diversify its revenue sources, while austerity and cost-cutting measures require a bold step from the government."
He added, "The value of Iraq's outstanding external debt has reached $10 billion, and internal debt has exceeded 90 trillion dinars, in addition to accumulated debts from the era of the former regime amounting to another $41 billion, most of which are debts to Gulf countries, some in cash and others in logistical support." /End 5
https://ninanews.com/website/News/Details?Key=1312900
Positive Understandings Reached Between Erbil And Baghdad Regarding The 2027 Budget And The Resolution Of The Contract Employees Issue
Erbil (Kurdistan 24) - The finance committees from Erbil and Baghdad held a joint meeting on Thursday, September 3, 2026, chaired by the Federal Minister of Finance, Faleh al-Sari, to discuss the Kurdistan Region’s share in the draft federal general budget law for 2027.
The meeting, which lasted for about three hours, witnessed "positive and constructive" discussions that resulted in pledges from the Federal Ministry of Finance to resolve the issue of teachers and employees on contracts throughout Iraq, including the Kurdistan Region, by converting them to permanent staff within the draft budget law for next year.
A member of the negotiating delegation told Kurdistan 24 that the new draft budget will also include a clause related to "job promotions" for employees, stressing that employees of the Kurdistan Region will be included in this decision, just like their counterparts in the rest of the federal institutions.
The relevant authorities are scheduled to begin drafting the budget bill next Saturday, with the aim of completing it by September 15th for submission to the Federal Cabinet. The Cabinet will then have one month to review and approve the bill before sending it to the Federal Parliament in October for the necessary legislative procedures.
https://www.kurdistan24.net/ar/story/937028/فاهمات-إيجابية-بين-أربيل-وبغداد-بشأن-موازنة-2027-وحسم-ملف-موظفي-العقود
Oil Heads For Sharp Weekly Gain On US-Iran Tensions
2026-09-04 Shafaq News Oil prices rose on Friday, heading for their steepest weekly gain since mid-July, as rising tension and renewed U.S.-Iran hostilities heightened concerns over Middle East supply risks.
Brent crude futures rose 54 cents, or 0.6%, to $96.06 a barrel by 0100 GMT, while U.S. West Texas Intermediate crude futures climbed 80 cents, or 0.9%, to $92.10.
On a weekly basis, Brent rose 7.6% and WTI was 10.4% higher, set for the highest gains since the week ended July 20.
U.S. attacks this week that killed and wounded dozens, including Iranian civilians, marked the fiercest clashes between the two countries since July. The war, which began with U.S.-Israeli strikes in late February, is now in its seventh month.
Israeli Defence Minister Israel Katz renewed warnings that Israel would "cripple" Iran's military and civilian infrastructure, including energy facilities.
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ANZ analysts raised their Brent crude forecast on Friday to $95 a barrel in the short term, with upside risk if the Middle East conflict intensifies.
"The market is entering a delicate adaptation phase. Elevated inventories helped absorb the initial supply crisis, but the challenge is now to keep the market balanced as those buffers diminish," the analysts said.
U.S. Vice President JD Vance told reporters on Thursday that Washington does not plan to hold talks with Iran unless Tehran stops attacking commercial shipping in the Strait of Hormuz.
Capping oil's advance, however, Russian President Vladimir Putin said there remained a path to a deal to end the war in Ukraine, adding that both the U.S. and China were prepared to support a peace settlement.
Meanwhile, Iran expanded its list of vessels it deems non-compliant and subject to fines, confiscation or detention if they attempt to transit the strait. Iraqi ships remain among the few vessels Tehran has cleared to pass through Hormuz.
Iraq increased its oil exports to around 2.34 million barrels per day in August from about 1.35 million bpd in July, two Iraqi energy officials said on Wednesday, with September exports also expected to increase as heavy discounts and Iranian approvals for Iraqi tankers encouraged buyers. (REUTERS)
https://www.shafaq.com/en/Economy/Oil-heads-for-sharp-weekly-gain-on-US-Iran-tensions
Gold Holds Steady Ahead Of US Payrolls Data
2026-09-04 Shafaq News Gold prices were steady on Friday and poised for a modest weekly gain, as traders' attention turned to key U.S. payrolls data for clues on the Federal Reserve's next interest rate decision.
Spot gold held its ground at $4,469.26 per ounce, as of 0633 GMT. Prices jumped 2% on Thursday as traders scaled back expectations for a September rate hike after Fed Governor Christopher Waller said he would support leaving rates unchanged if data continued to show inflation pressures moderating.
U.S. gold futures for December delivery fell 0.5% to $4,515.70.
Traders are pricing in an about 50% chance of a Fed rate hike later this month, according to the CME FedWatch Tool.
The U.S. nonfarm payrolls report is due at 1230 GMT.
"Weak figures and a rise in unemployment could weaken the case for a rate hike. In this case, gold could recover. However, the metal could remain exposed to changing sentiment, with inflation data releases coming next week," said Ross Maxwell, global strategy operations lead, VT Markets.
"The market continues to benefit from central bank demand, which could limit the extent of any decline."
Though gold is often viewed as an inflation hedge, elevated interest rates tend to weigh on the non-yielding asset.
Data on Thursday showed the number of Americans filing claims for unemployment benefits rose marginally last week amid low layoffs, pointing to stable labour market conditions.
Meanwhile, U.S. Vice President JD Vance said the fighting between Washington and Tehran was not a war and declined to provide a timeline for when the conflict would be over, underscoring the challenge the Trump administration faces as the hostilities enter their seventh month and mid-term elections loom.
Among other metals, spot silver fell 0.5% to $66.59 per ounce. Platinum lost 1.2% to $1,803.53 and palladium declined nearly 1.3% to $1,403.03, with both metals on track for slight weekly declines. (REUTERS)
https://www.shafaq.com/en/Economy/Gold-holds-steady-ahead-of-US-payrolls-data