Iraq Economic News and Points To Ponder Monday Afternoon 5-4-26
Iran War: What’s Happening On Day 66 As Trump Announces Hormuz Mission?
EXPLAINER News US-Israel war on Iran Trump orders new Hormuz mission after Iran says it receives US response to its peace proposal by Al Jazeera Staff and Reuters Published On 4 May 20 26
United States President Donald Trump has announced a naval mission called Project Freedom to help navigate stranded ships through the Strait of Hormuz, which remains under a de facto Iranian blockade. The operation will start on Monday, the US president says.
Iran took control of the Strait of Hormuz, through which one-fifth of global oil and liquefied natural gas supplies pass, days after the US and Israel launched attacks on Iran on February 28.
Despite Trump’s announcement, oil prices have failed to ease as the international benchmark Brent crude was essentially flat on Monday morning.
In response to Trump, top Iranian lawmaker Ebrahim Azizi said any US interference in the strait would be considered a violation of the ceasefire.
Here is what we know as the conflict enters day 66:
In Iran
Responding to Trump’s new naval operation, Iran’s military said on Monday: “Any foreign armed force, especially the aggressive US Army, will be attacked if they attempt to approach and enter the Strait of Hormuz.”
On Sunday, Iran said it received a US response to its latest offer for peace talks after Trump called Tehran’s proposal “unacceptable”.
Iranian Ministry of Foreign Affairs spokesperson Esmaeil Baghaei said on Monday that US allies in the region are aware the US-Israeli war on Iran is not legal but rather a “unilateral step” that goes against international law.
Diplomacy
Pakistani Foreign Minister Mohammad Ishaq Dar and his Iranian counterpart, Abbas Araghchi, have discussed the “regional situation” and “Pakistan’s ongoing diplomatic efforts for peace and stability in the region” in a phone call, Pakistan’s Ministry of Foreign Affairs said in a statement on social media..
After Trump accused NATO allies of not doing enough to support the US in the war on Iran, NATO Secretary-General Mark Rutte said on Monday that European nations have “gotten the message” and are now ensuring that agreements on the use of military bases are being implemented.
The leaders of Australia and Japan have agreed to step up cooperation on energy and critical minerals as the Iran war disrupts global trade.
In the US
Talking about his latest mission for the Strait of Hormuz, Trump said the US would start helping to free ships stranded in the Gulf by the US-Israeli war on Iran. Trump gave few details of the plan to aid ships and their crews that have been “locked up” in the vital waterway and are running low on food and other supplies more than two months after the conflict began.
The unified command of Iran’s armed forces responded by warning US forces to stay out of the strait. Its forces would “respond harshly” to any threat, it added, telling commercial ships and oil tankers to refrain from any movement in the absence of coordination with Iran’s military.
The US has evacuated 22 crew members held on board an Iranian container vessel to Pakistan and will hand them over to Iranian authorities on Monday, Pakistan’s Ministry of Foreign Affairs said, calling the move a “confidence-building measure”.
The United Kingdom Maritime Trade Operations (UKMTO) says the maritime security threat level in the Strait of Hormuz remains critical due to ongoing military operations.
In Lebanon
Israel has attacked at least eight locations in southern Lebanon. Our colleagues at Al Jazeera Arabic are reporting Israel attacked Debaal, Qana, Srifa and Qalaouiyah as well as Zawtar al-Sharqiya, Toulin, Shehour and Braachit. The attacks came after the Israeli military ordered residents to flee from their homes.
According to Lebanon’s National News Agency (NNA), Israeli forces also dropped flares over Braachit overnight and shelled the outskirts of the towns of Safad El Battikh, Yater, Majdel Selm and Chaitiyeh.
KRG Interior Ministry Bans Cryptocurrency Trading, Warns Of Legal Action
ERBIL (Kurdistan24) - The Kurdistan Region's Ministry of Interior of the issued a directive on Sunday prohibiting citizens and commercial entities from engaging in digital currency transactions and electronic financial speculation.
The KRG Interior Ministry said that these activities are legally forbidden, warning that immediate enforcement actions will be taken against violators operating within the region.
The ban formalizes the regional administration's stance against digital assets and speculative trading platforms.
According to the ministry statement, electronic currencies, including stablecoins such as USDT, and the broader "Forex" trading market lack any recognized legal framework or officially licensed companies in the Kurdistan Region and across Iraq.
The ministry emphasized that the decision was coordinated with national regulatory policies and aligns directly with the directives of the Central Bank of Iraq (CBI) and the KRG Ministry of Finance.
The regulatory crackdown includes strict enforcement measures.
According to the statement, authorities will begin identifying and closing any headquarters or offices that practice these activities under the guise of legitimate "companies," and individuals responsible will be referred to the judiciary for prosecution.
The KRG Interior Ministry also urged citizens to avoid these transactions to safeguard their savings and called on individuals who have already lost funds to pursue available legal avenues to reclaim their assets.
Regulatory Rationale
The decision to ban cryptocurrency trading is fundamentally rooted in consumer protection and financial security.
The KRG Interior Ministry noted that the absence of an official framework leaves those who engage in digital currency speculation entirely unprotected from market volatility and fraud.
This regional action mirrors long-standing national anxieties regarding digital assets.
According to Kurdistan24 investigations, Iraq's opposition to cryptocurrencies stems from its fears of unregulated digital currencies posing serious risks to both Iraq's financial system and its national security.
The CBI has consistently cited extreme volatility, the absence of regulatory safeguards, and the potential for criminal exploitation as the primary reasons for maintaining a prohibition on digital assets.
These concerns are amplified by the decentralized nature of the crypto market.
In a report by Al Jazeera journalist Fares al-Khayyam, Mudher Mohammad Saleh, the economic advisor to the Iraqi Prime Minister, emphasized that cryptocurrencies are absolutely prohibited in Iraq because their privacy and decentralization create opportunities for illicit activities.
According to Al Jazeera, Saleh highlighted that the lack of oversight by a central bank or monetary authority makes these digital currencies a tool for money laundering and a mechanism utilized by dangerous organizations.
Iraq's Broader Policy on Cryptocurrencies
The KRG Interior Ministry's ban is the latest enforcement action within a nearly decade-long national policy in Iraq.
The the foundation of Iraq's stance dates back to Dec. 2017, when the CBI issued a formal warning prohibiting banks, financial institutions, and currency traders from dealing in cryptocurrencies.
The CBI warned that traders engaging in crypto transactions would face penalties under the country's Anti-Money Laundering and Terrorist Financing Law.
The Iraqi banking sector has actively enforced this prohibition.
According to the report by the Trade Bank of Iraq, acting on CBI directives, instructed all banks and payment providers to block the use of electronic cards and digital wallets for speculation or trading in any form of digital currency.
Iraq's national policy is also driven by macroeconomic considerations.
Al Jazeera reported that Mustafa Hantoosh, a researcher specializing in financial and banking affairs, ruled out the utility of cryptocurrencies for Iraq's economic development.
According to Al Jazeera, Hantoosh noted that Iraq's economy is structurally dependent on oil exports priced in dollars, and the country does not require decentralized digital currencies to bypass sanctions or facilitate international trade.
Furthermore, Hantoosh warned that introducing cryptocurrencies into the Iraqi market would likely facilitate massive speculation and money laundering rather than foster legitimate economic growth.
While the ban on private cryptocurrencies remains total, the Iraqi government is not entirely opposed to digital finance.
The background report stated that the CBI is actively developing a state-issued central bank digital currency (CBDC), known as the digital dinar.
This controlled digital currency aims to modernize the national payments system, reduce cash leakage, and combat money laundering while strictly preserving the oversight of the central bank. https://www.kurdistan24.net/en/story/911806
UAE Expands Financial And Strategic Reforms Amid Regional Tensions And Energy Realignment
Currency swap talks with the U.S., aviation recovery efforts, and a post-OPEC strategy highlight Abu Dhabi’s push to reshape its economic and security posture
ERBIL (Kurdistan24) — The United Arab Emirates is simultaneously navigating financial diplomacy, post-conflict economic recovery, and a sweeping restructuring of its energy strategy as it responds to the broader geopolitical and economic consequences of recent regional tensions.
The UAE’s Minister of Foreign Trade, Thani Al Zeyoudi, confirmed on Monday that Abu Dhabi is in ongoing discussions with Washington over a potential currency swap line with the United States, while firmly rejecting suggestions that the move represents a bailout request.
Such arrangements, typically established between central banks, allow for the temporary exchange of currencies—primarily to provide access to U.S. dollar liquidity during periods of market stress—and are widely viewed as precautionary tools to support financial stability rather than emergency aid.
Speaking at the “Make it in the Emirates” conference in Abu Dhabi, Al Zeyoudi said the arrangement remains “under discussion,” stressing that the UAE’s objective is to join an “elite group” of countries with similar financial agreements with the U.S. He denied any financial distress motive behind the request.
Last month, however, the Wall Street Journal reported, citing U.S. officials, that the UAE had sought such a facility as a financial safeguard in the event that regional conflict further strains its economy.
The financial discussions come as the UAE continues to recover from significant disruption to its aviation sector. The Dubai Media Office reported on Monday that passenger traffic at Dubai International Airport fell by 66 percent in March, following regional instability and attacks attributed to Iranian retaliation during the Middle East conflict.
The airport, which is typically the world’s busiest for international travel, handled 2.5 million passengers during the period. Authorities said airspace restrictions and disrupted flight schedules severely constrained operations, though conditions have since begun to stabilize.
“With airspace within the UAE now fully restored, Dubai Airports is moving decisively to scale up operations,” the statement said, noting that recovery efforts are underway to restore flight capacity across regional routes.
Dubai Airports CEO Paul Griffiths described the recent downturn as “unprecedented for any major airport hub,” adding that quarterly traffic still fell 21 percent in early 2026 compared to the previous year.
Alongside financial and aviation pressures, the UAE is also undergoing a major shift in its long-term energy policy. The country’s oil chief confirmed that Abu Dhabi’s recent decision to exit OPEC was part of a broader strategy to future-proof the economy rather than a political move targeting any state or bloc.
Sultan Al Jaber said the withdrawal from OPEC and OPEC+ reflects a sovereign decision aligned with the UAE’s industrial and technological ambitions, aimed at accelerating diversification beyond fossil fuels.
“This move was not done in isolation,” Al Jaber said, describing it as part of a broader national effort to integrate energy, technology, and industrial development.
The UAE had long expressed frustration over production limits imposed by OPEC, particularly as it seeks to expand capacity to five million barrels per day by 2027, significantly above current quotas.
The decision also comes amid shifting regional dynamics and strained relations with Saudi Arabia, the de facto leader of OPEC, following disagreements over energy policy and Middle East conflicts.
Despite the geopolitical implications, officials emphasized that the UAE’s exit was conducted on amicable terms. Energy Minister Suhail Al Mazrouei said the decision was made “on good terms,” underscoring that it serves long-term national economic interests.
Meanwhile, Abu Dhabi is also accelerating investments in defense and domestic security technology. Officials from the Emirati defense conglomerate EDGE Group said the country is increasingly self-reliant in electronic warfare systems, including drone jamming capabilities used during recent attacks.
Faisal Al Bannai, adviser to the UAE president and chairman of EDGE Group, said the country now produces the majority of its defensive jamming systems domestically and aims to achieve full local production of air defense capabilities in the coming years.
As the UAE recalibrates its economic, financial, and security posture, the convergence of external pressures and internal reforms highlights a broader strategy aimed at strengthening resilience while reducing dependence on traditional geopolitical and energy frameworks.