Iraq Economic News and Points To Ponder Monday Afternoon 5-25-26

Oil Prices Plunge 6% On US-Iran Deal Progress

2026-05-25    Shafaq News   Oil prices fell 6% to two-week lows on Monday, as optimism grew that the United States and Iran were moving closer to a peace deal, even though they remain at odds over key issues, such as blockades on the Strait of Hormuz.

Brent crude futures fell $5.85, or 5.7%, to $97.69 a barrel by 0343 GMT, while U.S. West Texas Intermediate were at $90.85 a barrel, down $5.75, or 6%. Both contracts touched their lowest since May 7 earlier in the session.

On Saturday, U.S. President Donald Trump said ⁠Washington and Iran had "largely negotiated" an understanding on a peace deal that would reopen the Strait of Hormuz, which had carried a fifth of global shipments of oil and liquefied natural gas before the conflict.

"Not withstanding all the caveats and risks that remain to the peace deal and Strait of Hormuz, there is now some light at the end of the tunnel, which will bring some near-term oil price relief," said MST Marquee analyst Saul Kavonic.

However, the two sides remain at odds on several difficult issues, with Trump saying on Sunday he had told his representatives not to rush into any deal with Iran.

"We've been at this stage ⁠before, only for talks to break down. Therefore, the market will likely be more cautious about overreacting," said Warren Patterson, head of commodities strategy at ING.

Analysts expect a return to normal oil flows through the strait will take months, while damaged oil and gas facilities are repaired.

"The longer the crisis stretches, the more debatable it becomes whether ⁠world leaders genuinely want a quick end to disruptions," said Phillip Nova analyst Priyanka Sachdeva.

U.S. energy firms responded to higher local energy prices by adding oil and natural gas rigs for the fifth week in a row, for ⁠the first time since February 2025.

The rig count, an early indicator of future output, rose by seven to 558 in the week to May 22, its highest since June 2025. Even so, Baker Hughes said ⁠the total count was still down eight rigs, or 1% below this time last year.

"Momentum indicators suggest markets are attempting to stabilise after last week’s aggressive selloff, but conviction remains weak," Sachdeva said.

(Reuters)       https://www.shafaq.com/en/Economy/Oil-prices-plunge-6-On-US-Iran-deal-progress

Tanker With Iraqi Crude Clears Blocked Hormuz

2026-05-25Shafaq News- Strait of Hormuz   Two tankers stranded for three months have transited the Strait of Hormuz using a route designated by Iran, Reuters reported on Monday, amid signs of progress in negotiations between Washington and Tehran.

The liquefied natural gas (LNG) carrier Fure Vyl and the oil tanker Eagle Verona were among the few large vessels to leave the Gulf through the “control zone” extending from the western edge of Iran’s Qeshm Island to a point east of Umm Al Quwain in the United Arab Emirates.

Owned by Japanese shipping company Mitsui O.S.K. Lines and carrying Qatari LNG, the Fure Vyl, is expected to unload its cargo in Pakistan on Tuesday. The Eagle Verona, chartered by a subsidiary of Chinese energy company Sinopec and loaded with Iraqi crude oil, is scheduled to arrive at China’s Ningbo port on June 12.

The strategic waterway has remained largely restricted since February 28 following the US–Israel war on Iran, disrupting energy flows and prompting Gulf producers, including Iraq —which routes roughly 95% of its oil exports through the corridor— to scale back shipments.

Baghdad had previously secured access to the passage after Iran granted “brotherly Iraq” an exemption from “any restrictions imposed on the Strait of Hormuz,” setting it apart from states Tehran considers hostile.

Read more: Iraq's oil lifeline blocked: Why the crisis runs deeper than Hormuz

https://www.shafaq.com/en/Economy/Tanker-with-Iraqi-crude-clears-blocked-Hormuz

Dollar Trades Higher In Baghdad, Lower In Erbil

2026-05-25Shafaq News- Baghdad/ Erbil   The US dollar opened Monday’s trading mixed in Iraq, hovering around 153,000 dinars per 100 dollars.

According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 153,300 dinars per 100 dollars, up from the previous session’s 153,250 dinars.

In the Iraqi capital, exchange shops sold the dollar at 153,750 dinars and bought it at 152,750 dinars, while in Erbil, selling prices stood at 152,850 dinars and buying prices at 152,700 dinars.

https://www.shafaq.com/en/Economy/Dollar-trades-higher-in-Baghdad-lower-in-Erbil

Gold Prices Climb In Baghdad And Erbil Markets

2026-05-25Shafaq News- Baghdad/ Erbil   On Monday, gold prices hovered around 990,000 IQD per mithqal in Baghdad and Erbil markets, continuing their upward trend, according to Shafaq News Agency survey.

Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 985,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 981,000 IQD. The same gold had sold for 970,000 IQD on Sunday.

The selling price for 21-carat Iraqi gold stood at 955,000 IQD, with a buying price of 951,000 IQD.

In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 985,000 and 995,000 IQD, while Iraqi gold sold for between 955,000 and 965,000 IQD.

In Erbil, 22-carat gold was sold at 1,025,000 IQD per mithqal, 21-carat gold at 980,000 IQD, and 18-carat gold at 840,000 IQD.    https://www.shafaq.com/en/Economy/Gold-prices-climb-in-Baghdad-and-Erbil-markets-4-6-8

ISX Trading Value Jumps 958% In One Week

2026-05-25 Shafaq News- Baghdad   The Iraq Stock Exchange (ISX) recorded more than 86 billion Iraqi dinars (roughly $56M) in trading value last week, marking a 958% increase compared with the previous week.

According to market data, 83.652 billion shares were traded worth 86.729 billion dinars, up 1.206% in volume from last week, through 5,718 transactions.

The ISX60 index closed at 944.57 points, reflecting a 0.46% increase from the previous session.

Investors traded shares of 67 companies, while 29 others saw no activity due to unmatched buy and sell orders. Eight companies remained suspended for failing to submit required disclosures.

Non-Iraqi investors purchased 54 million shares worth 143 million dinars through 53 transactions, while selling 748 million shares valued at 1 billion dinars through 138 transactions.

The Iraq Stock Exchange holds five trading sessions per week, from Sunday to Thursday, and includes 104 listed Iraqi joint-stock companies representing the banking, telecommunications, industry, agriculture, insurance, financial investment, tourism, hotel, and service sectors. https://www.shafaq.com/en/Economy/ISX-trading-value-jumps-958-in-one-week