Iraq Economic News and Points To Ponder Monday Morning 3-9-26
War Shock: Oil Nears $120 Mark
2026-03-09 Shafaq News Oil prices surged around 25% on Monday to their highest since mid-2022, with Brent on track for a record one-day gain, while gold fell 2% as an escalating Iran war squeezed world energy supplies, boosted the dollar and dampened hopes of interest-rate cuts.
Agriculture markets, led by edible oils, rose as they took their cue from oil prices due to the extensive use of vegetable oils in making biofuels. Aluminium firmed on supply worries even as other metals faced headwinds from a stronger dollar.
"The violent reaction stems from the markets seeing no obvious offramp in the escalating Middle East conflict, now a high-stakes standoff where neither side appears willing to blink first," Tony Sycamore, IG market analyst, said in a note.
"The risk of more lasting economic damage continues to build by the day."
Iran on Monday named Mojtaba Khamenei to succeed his father Ali Khamenei as Supreme Leader, signalling that hardliners remain firmly in charge in Tehran a week into its conflict with the United States and Israel.
Soaring Oil Lifts Vegoils, Grains
Brent was on track for its biggest one-day gain ever in both percentage and absolute terms as the expanding U.S.-Israeli war with Iran led some major Middle Eastern oil producers to cut supplies and on fears of prolonged disruption to shipping through the Strait of Hormuz chokepoint.
Brent crude futures climbed to a high of $119.50 per barrel and U.S. West Texas Intermediate (WTI) to $119.48 a barrel.
"...the situation appears to be deteriorating further," ING analysts said in a note. "In addition, upstream oil production has started to shut in, with producers facing storage constraints. Iraq, Kuwait, and the UAE began reducing oil production."
In agricultural markets, Malaysian palm oil rose 9% and Chicago soybean oil climbed to its highest since late 2022, buoyed by the crude oil rally. Wheat rose to its highest since June 2024 and corn prices hit a 10-month high.
Gold fell more than 2% as a stronger dollar weighed on greenback-priced bullion, while higher energy costs fuelled inflation concerns and further dimmed the prospects for near‑term reductions in interest rates.
The dollar hovered near a three-month high hit last week, making bullion more expensive for holders of other currencies.
Oil-driven inflation fears and delayed rate-cut expectations likely strengthened U.S. yields and the dollar, outweighing safe-haven demand and pushing gold down.
Aluminium Jumps on Supply Disruptions
Aluminium soared to its highest in four years as supply concerns due to the Middle East war intensified.
Benchmark three-month aluminium on the London Metal Exchange hit its highest since March 2022 at $3,544 per ton.
Qatari smelter Qatalum and Aluminium Bahrain have already declared force majeure on shipments amid rising tensions in the Middle East. Other base metals were weighed down by a firmer dollar.
(Reuters) https://www.shafaq.com/en/Economy/War-shock-Oil-nears-120-mark
Iraq Ranks Lowest In Gulf Oil Storage Capacity
2026-03-09 Shafaq News- Baghdad Iraq has one of the lowest oil storage capacities among Gulf countries, with reserves sufficient for only about six days, according to data released by JPMorgan.
The data, released on Monday, showed that Saudi Arabia leads Gulf states in oil storage capacity, with reserves sufficient for about 65 days if exports are redirected and 36 days without redirection. Qatar ranks second with a storage capacity of about 20 days, followed by the United Arab Emirates, which can store oil for 19 days if exports are redirected and 16 days without redirection. Kuwait comes next with a storage capacity estimated at around 14 days.
https://www.shafaq.com/en/Economy/Iraq-ranks-lowest-in-Gulf-oil-storage-capacity
Iraq Central Bank Dollar Sales Exceed $80B In 2025
2026-03-09 Shafaq News- Baghdad The Central Bank of Iraq (CBI) sold $80.363 billion in foreign currency in 2025, marking a 3.88% increase from $77.652 billion recorded in 2024, according to official statistics released by the bank on Monday.
According to the data, external transfers accounted for the largest share of the bank’s dollar sales at $73.943 billion, followed by international settlements totaling $3.649 billion, while cash sales reached $2.771 billion.
The CBI also reported that its purchases of foreign currency from Iraq’s Ministry of Finance totaled $63.731 billion during 2025. https://www.shafaq.com/en/Economy/Iraq-Central-Bank-dollar-sales-exceed-80B-in-2025
Dollar Stabilizes In Baghdad, Slips In Erbil
2026-03-09 Shafaq News- Baghdad/ Erbil The US dollar opened Monday’s trading mixed in Iraq, hovering around 156,000 dinars per 100 dollars.
According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 155,750 dinars per 100 dollars, unchanged from the previous session.
In the Iraqi capital, exchange shops sold the dollar at 156,250 dinars and bought it at 155,250 dinars, while in Erbil, selling prices stood at 155,200 dinars and buying prices at 155,150 dinars.
https://www.shafaq.com/en/Economy/Dollar-stabilizes-in-Baghdad-slips-in-Erbil
Liquidity Crisis Hits Iraq’s Major State Banks
2026-03-09 Shafaq News- Baghdad Government banks in Iraq, including Rafidain and Rasheed, are facing a severe liquidity shortage, with cash becoming increasingly scarce, an economic source told Shafaq News on Monday.
Citing security concerns, particularly the conflict involving the United States, Israel, and Iran, depositors have increasingly withdrawn funds from government banks, potentially threatening Iraq’s financial security and economic stability.
“At some Rafidain and Rasheed branches, customers are asked to wait or return later to access their full funds, while others provide only partial amounts, postponing the remainder,” the source explained, adding that these practices have affected service quality and weakened public confidence in the government banking sector.
The banks also continue to face administrative and legal challenges. Over the past years, modernization efforts have remained limited, with many relying heavily on paper-based processes instead of electronic systems and modern banking technology.
On February 28, the United States and Israel carried out airstrikes on targets inside Iran, including Tehran. The attacks caused significant damage and civilian casualties and killed Iranian Supreme Leader Ali Khamenei along with several senior Iranian Revolutionary Guard Corps (IRGC) commanders. Iran responded with retaliatory actions affecting multiple countries in the region, including Iraq, Israel, Jordan, Kuwait, Bahrain, Qatar, the United Arab Emirates, and Saudi Arabia.
https://www.shafaq.com/en/Economy/Liquidity-crisis-hits-Iraq-s-major-state-banks
Gold prices fall in Baghdad and Erbil markets
2026-03-09 Shafaq News- Baghdad/ Erbil On Monday, gold prices hovered around 1.11 million 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 1,110,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 1,106,000 IQD. The same gold had sold for 1,124,000 IQD on Sunday.
The selling price for 21-carat Iraqi gold stood at 1,080,000 IQD, with a buying price of 1,076,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 1,110,000 and 1,120,000 IQD, while Iraqi gold sold for between 1,080,000 and 1,090,000 IQD.
In Erbil, 22-carat gold was sold at 1,157,000 IQD per mithqal, 21-carat gold at 1,106,000 IQD, and 18-carat gold at 947,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-fall-in-Baghdad-and-Erbil-markets-2
Bitcoin Rebounds From Its Lowest Level In A Week
Money and Business Economy News - Follow-up Bitcoin prices rebounded after declines earlier on Monday, during which they hit a one-week low.
Bitcoin rose 2% after being down more than 2% this morning.
Bitcoin is trading at $67,300 by 07:00 GMT, according to CoinMarketCap.
Bitcoin managed to break through the $73,000 level earlier last week, but failed to maintain those gains.
Despite Bitcoin's decline, Ericsenz Capital noted that the drop was relatively limited compared to the decline in stock indices such as the Nasdaq or KOSPI, reflecting a decrease in the volume of leveraged long positions in the market.