Iraq Economic News and Points To Ponder Monday Afternoon 1-26-26
Gold Breaks $5,000 As Iran Tensions And Yen Intervention Fears Rattle Markets
2026-01-26 Shafaq News Gold surged past $5,000 per ounce on Monday, buoyed by safety flows amid dollar weakness following a turbulent week where tensions over Greenland and Iran rattled investors, while markets remained on tenterhooks after violent spikes in the yen.
The yen rose over 1% to 153.99 per dollar as of 0427 GMT, after sharp spikes on Friday sparked speculation over potential intervention. The New York Federal Reserve conducted rate checks on Friday, sources told Reuters, raising the chance of joint U.S.-Japan intervention to halt the currency's slide.
"The market's inclination is to short the yen but the possibility of co-ordination means it no longer is a one-way bet," said Prashant Newnaha, senior rates strategist at TD Securities in Singapore.
The prospect of joint intervention to support the yen pulled the dollar lower and broadly lifted other currencies.
Japan's Nikkei dropped about 2% while S&P 500 futures fell 0.25% and European futures were 0.27% lower as traders awaited the Federal Reserve's policy meeting later in the week.
U.S. President Donald Trump provided temporary relief to markets last week by reversing tariff threats and downplaying potential forceful action against Greenland. However, further sanctions targeting Iran have reinforced market anxiety.
Increased U.S. pressure against Iran is pushing oil prices higher and lifting safe-haven gold to record peaks. Precious metals, including silver , have surged in a blistering rally so far this year, also aided by a softer dollar.
INTERVENTION CHATTER KEEPS YEN ALOFT
While authorities in Tokyo declined to comment on the yen's wild swings, sources told Reuters about the rate checks on Friday, leaving traders on edge at the prospect of an intervention that could come any time.
Japanese Prime Minister Sanae Takaichi said on Sunday her government will take necessary steps against speculative market moves.
Carlos Casanova, senior Asia economist at UBP, said the mere expectation of potential intervention could, in itself, contribute to some strengthening of the currency.
"The Japanese yen is likely to stabilise to some extent - though the catalysts for significant appreciation remain limited - while long-term yields are expected to face continued pressure at their current elevated levels."
A steep bond market rout in Japan last week had put the spotlight on Takaichi's expansionary fiscal policy as she called a snap election that is due for February 8. The bond market has since calmed somewhat, but investors remain jittery.
The yen was broadly firmer against other currencies too on Monday, inching away from the record low against the euro and Swiss franc and multi-decade lows against sterling.
Charu Chanana, chief investment strategist at Saxo, said the rate-check style warning could help reset positioning and remind the market there’s a line near 159–160.
"With the dollar starting to look softer, this is actually a cleaner window for Japan to lean against yen weakness. Intervention works better when it’s going with the broader USD tide, not fighting it."
The dollar index , which measures the U.S. currency against six rivals, fell as much as 0.2% to a four-month low of 96.996 after dropping 0.8% on Friday in its biggest one-day drop since August.
Investor focus this week will also be on the Fed. The central bank is expected to hold rates steady at a meeting overshadowed by a Trump administration criminal investigation of Fed Chair Jerome Powell, whose term ends in May.
In commodities, oil prices were little changed after rising about 3% on Friday, with traders weighing the impact of Trump pressuring Iran through more sanctions on vessels that transport its oil. Brent crude futures were flat at $65.91 a barrel, while U.S. West Texas Intermediate crude stood at $61.1 per barrel. (Reuters) https://www.shafaq.com/en/Economy/Gold-breaks-5-000-as-Iran-tensions-and-yen-intervention-fears-rattle-markets
Gold Prices Skyrocket In Baghdad, Erbil
2026-01-26 Shafaq News– Baghdad/ Erbil Gold prices rose on Monday in Baghdad and Erbil, extending gains after crossing the one-million-dinar mark last week.
According to a Shafaq News market survey, wholesale prices in Baghdad’s Al-Nahr Street market put 21-carat Gulf, Turkish, and European gold at 1.071 million dinars per mithqal (about five grams) for selling and 1.067 million dinars for buying, up from 1.033 million dinars on Sunday.
Iraqi 21-carat gold sold at 1.041 million dinars per mithqal, with buying prices at 1.037 million dinars. In retail shops, 21-carat Gulf gold sold for between 1.070 million and 1.080 million dinars per mithqal, while Iraqi gold ranged from 1.040 million to 1.050 million dinars.
In Erbil, gold prices also climbed, with 22-carat gold selling at 1.139 million dinars, 21-carat at 1.087 million dinars, and 18-carat at 932,000 dinars. https://www.shafaq.com/en/Economy/Gold-prices-skyrocket-in-Baghdad-Erbil-8
USD/IQD Exchange Rates Climb In Baghdad, Erbil
2026-01-26 03:45 Shafaq News- Baghdad/ Erbil The US dollar exchange rates against the Iraqi dinar rose on Monday in Baghdad and Erbil, hovering near 149,300 dinars per 100 dollars.
According to a Shafaq News market survey, the dollar traded in Baghdad’s Al-Kifah and Al-Harithiya central exchanges at 149,300 dinars per 100 dollars, up from Sunday’s 148,200 dinars.
In the Iraqi capital, exchange shops sold the dollar at 149,750 dinars and bought it at 148,750 dinars, while in Erbil, selling prices reached 149,950 dinars and buying prices stood at 149,900 dinars.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-climb-in-Baghdad-Erbil-1
Oil Holds Near Two-Month Highs As US Outages And Iran Tensions Offset Surplus Fears
2026-01-26 Shafaq News Oil prices were little changed on Monday after climbing more than 2% in the previous session, as supply concerns kept a lid on benchmarks despite production disruptions in major U.S. crude-producing regions.
Brent crude futures fell 7 cents, or 0.1%, to $65.81 a barrel at 0221 GMT. U.S. West Texas Intermediate crude was at $61.01 a barrel, down 6 cents, or 0.1%.
Both benchmarks notched weekly gains of 2.7% to close on Friday at their highest points since January 14. A U.S. military aircraft carrier strike group and other assets are expected to arrive in the Middle East in the coming days.
"Oil prices are being tickled this week by signs of production disruptions in the U.S., coupled with persistent geopolitical risk against the notion of an oversupplied 2026," said Priyanka Sachdeva, senior market analyst at Phillip Nova Pte Ltd.
Crude production of about 250,000 barrels per day has been lost in the U.S. due to harsh weather, including declines in the Bakken field in Oklahoma and parts of Texas, JPMorgan analysts said in a note on Monday.
"Winter storm Fern struck the U.S. coast, forcing shut-ins in major crude and natural gas producing regions and adding stress to the power grid," she said, adding that oil markets are experiencing a mild upswing as outages tighten physical flows.
Traders are also wary of geopolitical risks, analysts say, as tensions between the U.S. and Iran keep investors on edge.
"President Trump's declaration of a U.S. armada sailing toward Iran has reignited supply-disruption fears, adding a risk premium to crude prices and supported risk aversion flows more broadly this morning," IG market analyst Tony Sycamore said.
On Friday, a senior Iranian official said Iran would treat any attack "as an all-out war against us."
Separately, Kazakhstan's Caspian Pipeline Consortium said it returned to full loading capacity at its terminal on the Black Sea coast on Sunday after completing maintenance at one of its three mooring points.
"Traders are weighing the durability of the surplus more heavily than episodic headlines," Phillip Nova's Sachdeva said. "So, unless OPEC+ or major producers announce meaningful cuts, the overall oil market picture still points to soft structural fundamentals in 2026." (Reuters) https://www.shafaq.com/en/Economy/Oil-holds-near-two-month-highs-as-US-outages-and-Iran-tensions-offset-surplus-fears
Iraq Pushes Revenue Collection Plan Amid University Protests
2026-01-26 Shafaq News– Baghdad Iraq’s caretaker government recommended creating a new body to collect public revenues on Monday, as protests by university employees over recent financial measures continued to expand across several provinces.
According to a statement from caretaker Prime Minister Mohammad Shia Al-Sudani's media office, the step followed a meeting of the Ministerial Council for the Economy, which Al-Sudani chaired to advance measures aimed at boosting state revenues and tightening public spending in line with current fiscal priorities.
The council called for the establishment of a General Directorate for Public Revenue Collection, with Al-Sudani directing the formation of a committee to prepare the directorate’s organizational structure, define its duties, and assess its technical and logistical requirements.
Meanwhile, protests and strikes by Iraqi university employees continued for a second day in Baghdad, Najaf, Basra, Dhi Qar, Maysan, Al-Anbar, and Nineveh over a cabinet decision to cut university allowances, Shafaq News correspondent said.
While the Ministry of Finance previously clarified that allowances would apply only to employees fully dedicated to teaching duties in higher education and health institutions, aimed at boosting revenues and tightening spending, several lawmakers criticized the measures as unconstitutional, warning that they place additional financial burdens on both the state and citizens.
Against this backdrop, Iraq’s parliament postponed a session scheduled for Monday to review recent economic decisions by the caretaker government, including measures related to salaries, university allowances, and increases in fees and customs tariffs. A lawmaker told our agency that the leadership of the Council of Representatives adjourned the session after failing to reach a legal quorum. https://www.shafaq.com/en/Economy/Iraq-pushes-revenue-collection-plan-amid-university-protests