Iraq Economic News and Points To Ponder Monday Afternoon 7-27-26
Brazil's Exports To Iraq Fall To $208M In Q2 2026
2026-07-26 18:34 Shafaq News- Brasilia/ Baghdad Iraq's imports from Brazil fell 37.5% in the second quarter of 2026 to $208 million, down from $333 million in the first quarter, the Brazilian Ministry of Development, Industry, Trade and Services said on Sunday.
According to the ministry's data, cane or beet sugar and chemically pure sucrose topped Brazil's exports to Iraq at $70 million, followed by live cattle ($58M), soybeans ($40M), and poultry meat ($35M). Iraq also imported frozen beef ($2.8M), manufactured tobacco ($1.4M), hair care products ($608,000), prepared and preserved meat ($378,000), orthopedic and medical devices ($364,000), and appliances for spraying liquids or powders ($220,000) from Brazil.
Earlier this year, UN COMTRADE data showed that Iraq's exports to Brazil remained limited in 2025, totaling just $3.06 million, compared with the much larger value of Brazilian exports to Iraq.
https://www.shafaq.com/en/Economy/Brazil-s-exports-to-Iraq-fall-to-208M-in-Q2-2026
Oil Prices Drop 4% On US-Iran De-Escalation Signs
2026-07-27 01:17 Shafaq News Oil prices tumbled 4% on Monday after the U.S. and Iran paused strikes over the weekend after two weeks of attacks, raising hopes of a diplomatic solution that would de-escalate the conflict and allow shipping to resume in the Strait of Hormuz.
Brent crude futures fell $3.96, or 4.1%, to $92.82 by 0329 GMT after briefly slipping under the key support level of $90 earlier in the session.
U.S. West Texas Intermediate crude was at $85.29 a barrel, down $4.02, or 4.5%.
Both contracts are trading at their lowest levels in nearly a week after rising for the past three weeks.
Brent had reached $100 per barrel as the conflict, which reduced oil shipments via the Strait of Hormuz, spilled over to the Red Sea, hindering exports from the world's top exporter, Saudi Arabia, via the Bab el-Mandeb strait to Asia.
The U.S. ambassador to the United Nations, Mike Waltz, told "Fox News Sunday" and other U.S. media that President Donald Trump had decided to pause U.S. attacks to allow more time for diplomacy.
"Oil prices fell sharply in early trading as the U.S. and Iran refrained from further military action, offering the first tangible signs of a potential de-escalation in tensions," said ING analysts in a client note.
"The price action in oil this morning clearly reflects the market's desperation for positive news."
Despite the pause in attacks, fewer than 10 commodity vessels passed through the Strait of Hormuz daily during the weekend, shipping data from Kpler showed.
"Any rebound in flows through the Strait of Hormuz is likely to prove slow and partial, as many shippers remain wary and will want greater confidence in their safety before they bring more empty ships into the Strait," MST Marquee analyst Saul Kavonic said.
In addition, ship traffic through the Bab el-Mandeb strait fell on Sunday after Yemeni Houthis attacked Saudi oil installations along the Red Sea coast, although a third Chinese supertanker exited via the Bab el-Mandeb strait.
However, some analysts are still expecting markets to be supported if crude supplies stay affected by ongoing shipping risks in the Middle East and the Russia-Ukraine war.
"As the Middle East conflict widened to the Red Sea and Ukrainian drones struck Russian ships and refineries...Sustained (supply) disruption would likely keep oil prices elevated and continue to pose upside risks to global inflation," said UOB analysts in a note. (REUTERS) https://www.shafaq.com/en/Economy/Oil-prices-drop-4-on-US-Iran-de-escalation-signs
USD/IQD Exchange Rates Surge In Baghdad, Erbil
2026-07-27 04:34 Shafaq News- Baghdad/ Erbil TGFThe US dollar strengthened against the Iraqi dinar on Monday morning, hovering around 150,000 dinars per $100 in Baghdad and Erbil, according to a Shafaq News market survey.
In Baghdad, the dollar traded at 150,050 IQD per $100 at the Al-Kifah and Al-Harithiya central exchanges, up from 149,650 IQD on Sunday.
Exchange shops in the capital offered the dollar at 150,500 IQD per $100, with a buying price of 149,500 IQD.
In Erbil, the capital of the Kurdistan Region, the dollar was selling at 150,200 IQD per $100 and buying at 150,100 IQD per $100. https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-surge-in-Baghdad-Erbil-7-4
Gold Prices Climb In Baghdad, Erbil
2026-07-27 05:30 Shafaq News- Baghdad/ Erbil Gold prices rose in Baghdad and Erbil on Monday, with 21-carat gold hovering around 860,000 Iraqi dinars ($656) per mithqal (equivalent to five grams), according to a Shafaq News market survey.
On Baghdad's Al-Nahr Street, 21-carat Gulf, Turkish and European gold was selling for 858,000 IQD ($655) per mithqal and buying at 854,000 IQD ($652), up from 852,000 IQD on Sunday.
The selling price for 21-carat Iraqi gold stood at 828,000 IQD ($632) per mithqal, with a buying price of 824,000 IQD ($629).
In jewellery stores, 21-carat Gulf gold ranged between 860,000 and 870,000 IQD ($656-$664) per mithqal, while Iraqi gold sold for 830,000-840,000 IQD ($634-$641).
In Erbil, 22-carat gold sold for 905,000 IQD ($691) per mithqal, 21-carat gold for 865,000 IQD ($660), and 18-carat gold for 742,000 IQD ($566). https://www.shafaq.com/en/Economy/Gold-prices-climb-in-Baghdad-Erbil-7
Five-Part Energy Plan Targets Iraq’s Power Shortages
2026-07-27 08:29 Shafaq News- Baghdad Iraq’s Electricity Ministry on Monday outlined a five-part plan to address widespread power cuts through additional fuel supplies, the return of stalled generating units, domestic gas development, solar projects, and electricity links with neighboring countries.
Ministry spokesperson Ahmed Jiyad told Shafaq News that regional tensions had contributed to the crisis but were not its only cause, citing lower domestic and imported gas supplies, unprecedented temperatures, and rising demand on the national grid.
The ministry is now “coordinating with relevant authorities” to secure fuel, restore offline units, accelerate local gas investment, expand solar generation, and diversify electricity supplies.
Under Iraq’s latest agreement with GE Vernova, the US energy company must arrange up to 10,000 megawatts of electricity imports from neighboring countries by 2027, parliamentary Electricity and Energy Committee member Riyad Adday told Shafaq News.
The ministry previously projected peak summer generation of about 30,000 megawatts against demand of 55,000 to 60,000 megawatts, indicating that scheduled cuts would continue even if plants operated at full planned capacity.
Read more: 40-GW electricity gap forces Iraq to back private generators
https://www.shafaq.com/en/Economy/Five-part-energy-plan-targets-Iraq-s-power-shortages
Lawmakers Endorse Reforms To Ease Iraq's Power Shortages
2026-07-27 13:17 Shafaq News- Baghdad The Iraqi parliament voted on Monday to approve a package of recommendations to address the country's electricity crisis, including reopening all corruption cases related to the Electricity Ministry dating back to 2005 and strengthening oversight.
According to a statement, the measures require the ministry to submit a detailed annual plan before each summer season outlining completion rates, implementation timelines, and performance indicators, with regular reviews by parliament.
The suggestions also call for reviewing all contracts and projects awarded through exemptions or found to lack technical or economic viability, while taking legal action against those responsible for wasting public funds.
They further called for adopting a national renewable energy program by expanding the use of solar power systems for households and the agricultural and industrial sectors to ease pressure on the national grid and reduce fuel consumption.
The Central Bank of Iraq, in coordination with public and private banks, was tasked with launching a soft-loan initiative offering subsidized or interest-free financing, flexible repayment terms, and simplified guarantees for citizens wishing to install solar power systems. In addition, the Electricity Ministry was directed to establish technical and administrative mechanisms to facilitate connecting solar power systems to the national grid.
Read more: Iraq needs ≈25M solar panels to ease power crisis
A joint committee comprising the parliamentary committees on Electricity, Finance, Planning, Investment, Oil, Services, and Integrity will oversee implementation of the measures and submit periodic progress reports to parliament on achievement rates and obstacles.
Earlier today, Electricity Minister Ali Saadi Wahib reportedly told parliament that Iraq needs 60,000 MW of electricity but is generating only 20,000 MW after losing about 7,000 MW of capacity. He pledged to restore 9,000 MW within 15 days through increased Iranian gas supplies and discussions with Turkiye on electricity imports.
https://www.shafaq.com/en/Iraq/Lawmakers-endorse-reforms-to-ease-Iraq-s-power-shortages