Iraq Economic News And Points To Ponder Monday Afternoon 3-30-26
Airspace Closure Costs Iraq $360K Daily
2026-03-30 Shafaq News- Baghdad Iraq is losing an estimated $360,000 per day due to the suspension of overflights across its airspace, totaling about $10.8 million per month, according to the Eco Iraq Observatory on Monday.
The observatory said Iraqi airspace had previously handled around 800 flights per day —both domestic and international— exceeding earlier averages of 700 to 750 flights daily, adding that each aircraft paid approximately $450 in overflight fees, generating daily revenues of about $360,000.
Read more: Iraq airspace closure costs $43 million during US-Israel war on Iran
Air traffic has been halted since the Ministry of Transport closed Iraqi airspace on February 28 following the outbreak of the Israel-US war on Iran, amid escalating regional security risks, including missile and drone exchanges across Iraqi skies and attacks by Iran-aligned factions on US facilities in Baghdad and the Kurdistan Region. https://www.shafaq.com/en/Economy/Airspace-closure-costs-Iraq-360K-daily
Oil Surges As Houthi Attacks Widen Middle East Conflict
2026-03-30 Shafaq News Oil prices extended gains on Monday, with Brent headed for a record monthly rise, after Yemeni Houthis launched their first attacks on Israel over the weekend, widening the U.S.-Israel war with Iran in the Middle East.
Brent crude futures jumped $2.43, or 2.16%, to $115 a barrel by 0342 GMT after settling 4.2% higher on Friday.
U.S. West Texas Intermediate was at $101.50 a barrel, up $1.86, or 1.87%, following a 5.5% gain in the previous session.
"The market has all but discounted the prospect of a negotiated end to the war, Trump’s claims of ongoing 'direct and indirect' talks with Iran notwithstanding, and is bracing for a sharp escalation in military hostilities, which is a bullish signal for crude, with huge uncertainties on the timing and nature of the outcome," said Vandana Hari, founder of oil market analysis provider Vanda Insights.
U.S. President Donald Trump saidthe U.S. and Iran have been meeting "directly and indirectly" and that Iran's new leaders have been "very reasonable", as more U.S troops arrived in the region, while the Israeli military said on Monday it is attacking the Iranian government's infrastructure throughout Tehran.
Brent has soared 59% this month, the steepest monthly jump, exceeding gains seen during the 1990 Gulf War, after the Iran conflict effectively closed the Strait of Hormuz, a conduit for a fifth of the world's oil and gas supplies.
The war, launched on February 28 with U.S. and Israeli strikes on Iran, has spread across the Middle East, with Yemen's Iran-aligned Houthis on Saturday launching their first attacks on Israel since the start of the conflict, raising concern about shipping lanes around the Arabian Peninsula and the Red Sea.
"The conflict is no longer concentrated in the Persian Gulf and around the Strait of Hormuz, but now extends into the Red Sea and the Bab el-Mandeb — one of the world's most crucial chokepoints for crude and refined product flows," JP Morgan analysts led by Natasha Kaneva said in a note.
Saudi crude exports re-directed from the Strait of Hormuz to the Yanbu port in the Red Sea reached 4.658 million barrels per day last week, data from analytics firm Kpler showed.
If exports from Yanbu were disrupted, Saudi oil would need to pivot toward Egypt’s Suez-Mediterranean (SUMED) pipeline to the Mediterranean, JP Morgan analysts said.
Attacks in the region escalated over the weekend and damaged Oman's Salalah terminal despite efforts to start ceasefire talks.
Iran said it was ready to respond to a U.S. ground attack, accusing Washington on Sunday of preparing a land assault even as it sought negotiations.
Pakistan's Foreign Minister Ishaq Dar said they had covered possible ways to bring an early and permanent end to the war in the region as well as potential U.S.-Iran talks in Islamabad.
(REUTERS) https://www.shafaq.com/en/Economy/Oil-surges-as-Houthi-attacks-widen-Middle-East-conflict
Oil Could Hit $200 As Trump Threats Rattle Markets
2026-03-30 Shafaq News- Washington/ Tehran Oil prices could surge to $200 per barrel if the conflict escalates, analysts warn, as US threats against Iranian energy infrastructure and disruptions in the Strait of Hormuz tighten global supply.
Tamas Varga of PVM Energy said a ground offensive against Iran, expanded strikes on Gulf energy assets, or a full closure of Hormuz would sharply constrain flows, pushing prices toward extreme levels. Even a disruption of 10 million barrels per day would remove roughly three days of global supply each month.
US President Donald Trump raised tensions further, suggesting Washington could seize Iran’s Kharg Island, a key export hub, or destroy it if Tehran fails to reopen Hormuz and negotiations stall. Analysts say capturing the island would not grant control over Iranian oil but would cripple export capacity and drive prices higher.
The conflict has already disrupted shipments through Hormuz, a chokepoint for about 20% of global oil and gas flows, amplifying volatility across energy markets. Even under a ceasefire, restoring supply chains could take months, with additional US deployments signaling prolonged instability.
The impact is feeding into inflation risks in Europe. Germany has moved to cap fuel price increases, while businesses signal further price hikes as energy costs rise. https://www.shafaq.com/en/Economy/Oil-could-hit-200-as-Trump-threats-rattle-markets
Cash Dominates Payments In Iraq Despite Rise In Bank Cards
2026-03-30 Shafaq News- Baghdad Cash transactions remain the preferred method of payment for many Iraqis despite the expansion of banking cards and digital applications, as concerns over trust and system stability continue to limit broader adoption.
Economic expert Mohammed Al-Hassani told Shafaq News on Monday that Iraq’s liquidity structure continues to reflect a heavy reliance on cash, noting that around 40% to 45% of the money supply remains outside the banking system, while only 55% to 60% is held within banks.
The Central Bank of Iraq (CBI) also indicated that total cash in circulation stands at 93.789 trillion dinars, while 115.535 trillion dinars ($79.7 billion) are held within banks. Recent economic reports estimate that 90% to 95% of transactions in Iraq are still conducted in cash.
Financial adviser to the Prime Minister, Mazhar Mohammed Salih, told our agency that the informal economy still accounts for a significant share of activity in Iraq, reinforcing reliance on cash, particularly in markets and small businesses. He added that cultural factors and limited digital financial awareness contribute to this preference, alongside concerns over fees and technical errors, noting that many cardholders use their cards primarily to withdraw salaries rather than as a payment tool.
However, Salih pointed to emerging positive indicators, with gradual growth in the use of electronic payment cards, particularly at fuel stations and in some services, supported by the government’s economic and banking reform program.
Speaking to Shafaq News, financial expert Mahmoud Dagher said the shift from cash to electronic payments faces several challenges, including the lack of a fully organized economic cycle, such as business registration, property documentation, and access to bank accounts.
Additionally, the absence of large segments of consumers and merchants from the banking system limits the expansion of electronic payment tools, while increasing trust in the banking sector and offering incentives, such as discounts or additional benefits, is essential to encourage adoption.
“Imposing electronic payments by force may not yield positive results,” he stated, noting that Iraq’s electronic payment system is still relatively new, having emerged only around two years ago.https://www.shafaq.com/en/Economy/Cash-dominates-payments-in-Iraq-despite-rise-in-bank-cards
Read more: From Cash to Cards: Iraq's shift to a cashless future
Read more: Cash culture dominates Iraq, reform efforts stall
Dollar Rises In Baghdad And Erbil
2026-03-30 Shafaq News- Baghdad/ Erbil The US dollar opened Monday’s trading higher in Iraq, hovering around 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 155,200 dinars per 100 dollars, up from the previous session’s 154,500 dinars.
In the Iraqi capital, exchange shops sold the dollar at 155,750 dinars and bought it at 154,750 dinars, while in Erbil, selling prices stood at 155,100 dinars and buying prices at 155,050 dinars. https://www.shafaq.com/en/Economy/Dollar-rises-in-Baghdad-and-Erbil-6-7
Gold Prices Rise In Baghdad And Erbil Markets
2026-03-30 Shafaq News- Baghdad/ Erbil On Monday, gold prices hovered around 990,000 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 989,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 985,000 IQD. The same gold had sold for 978,000 IQD on Sunday.
The selling price for 21-carat Iraqi gold stood at 959,000 IQD, while the buying price reached 955,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 990,000 and 1,005,000 IQD, while Iraqi gold sold for between 960,000 and 970,000 IQD.
In Erbil, 22-carat gold was sold at 1,063,000 IQD per mithqal, 21-carat gold at 1,015,000 IQD, and 18-carat gold at 870,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-rise-in-Baghdad-and-Erbil-markets-4-0
USD/IQD Exchange Rates Edge Higher In Baghdad And Erbil
2026-03- Shafaq News- Baghdad/ Erbil The US dollar closed Monday’s trading higher in Iraq, hovering around 155,000 dinars per 100 dollars.
According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 155,250 dinars per 100 dollars, up from the morning session’s 155,200 dinars.
In the Iraqi capital, exchange shops sold the dollar at 155,750 dinars and bought it at 154,750 dinars, while in Erbil, selling prices stood at 155,600 dinars and buying prices at 154,350 dinars.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-edge-higher-in-Baghdad-and-Erbil-3