Iraq Economic News And Points To Ponder Saturday Afternoon 4-18-26
The Economist: Any potential war in the region would threaten $6 trillion of Gulf wealth.
War Will Drain the Gulf’s $6 Trillion Treasure Chest
The Conflict Complicates Life for the Custodians opf Middle Eastern Oil Fortunes
Money and Business Economy News — Follow-up The Iranian news agency “Akharin Khabar” reported on Saturday that the latest report by the widely circulated British magazine “The Economist” indicated that any large-scale military escalation in the Middle East, especially if it involves Iran or disrupts navigation through the Strait of Hormuz, could have serious repercussions on the economies of the Gulf states, which possess sovereign assets estimated at around $6 trillion.
According to the analysis, the risk is not limited to the energy sector alone, but extends to the economic and investment structure on which the Gulf states depend to promote their growth and diversify their sources of income.
According to the British magazine, estimates indicate damages that could reach $25 billion to the oil and gas infrastructure of the Gulf states, with additional costs for new pipelines that could amount to $30-50 billion.
https://www.economy-news.net/content.php?id=68030
Sudanese: The Importance Of Supporting The Private Sector To Be A Key Partner In Building And Scientific And Economic Development
Money and Business Economy News — Baghdad Prime Minister Mohammed Shia al-Sudani affirmed on Saturday that the government will continue to implement projects to expand and develop the infrastructure of the education sector, which will positively impact the quality of education in Iraq.
This came during a visit by Al-Sudani to Al-Raqiya Intermediate Basic School in the capital, Baghdad, where he participated in the graduation ceremony of the current batch of students for the academic year.
The Prime Minister praised the great efforts made by educational staff in all schools across the country, stressing that the government gives special priority to the education sector within its reform and development plans.
He stressed that human development and providing a suitable educational environment are key priorities in the government’s work, along with supporting other development sectors and enhancing the role of the private sector as a partner in scientific and economic development, particularly in the educational field.
Al-Sudani also called for strengthening cooperation between families and educational institutions in order to prepare a generation that is aware and committed to societal values, stressing the importance of continuous monitoring of the educational process to achieve sustainable positive results. https://www.economy-news.net/content.php?id=68028
Australia And Japan Sign Contracts For A $7 Billion Warship Deal
Money and Business Economy News — Baghdad Australia and Japan on Saturday signed contracts launching a historic deal worth 10 billion Australian dollars, equivalent to 7 billion US dollars, to supply Australia with warships, the largest military deal for Tokyo since the lifting of the arms export ban in 2014.
Australian Defence Minister Richard Marles said in a statement that he and his Japanese counterpart Shinjiro Koizumi had signed a memorandum "reaffirming the two governments' shared commitment to the successful delivery" of the warships.
The deal struck in August reinforces Japan's efforts to move away from its post-war pacifist policy in order to establish security ties that go beyond its alliance with the United States to counter China.
Japan's Mitsubishi Heavy Industries will supply the Royal Australian Navy with three upgraded multi-mission frigates to be built in Japan starting in 2029. Eight more frigates will be built in Australia.
The Japanese Ministry of Defense posted on XN that Koizumi and Marls welcomed "the signing of the multi-mission frigate contracts and affirmed the strengthening of bilateral defense relations" during the signing ceremony in Melbourne.https://www.economy-news.net/content.php?id=68027
Gold Is Heading For Its Fourth Weekly Gain Amid Anticipation Of A Deal On Iran.
Money and Business Economy News — Follow-up Gold is on track for its fourth weekly gain after US President Donald Trump expressed optimism that the United States and Iran could reach a permanent ceasefire to end the war that has shaken markets and increased inflation fears.
The precious metal settled near $4,795 an ounce in early trading on Friday, after rising about 1% this week, according to Bloomberg. https://www.economy-news.net/content.php?id=67984
Basrah Crudes Post Weekly Gains As Global Oil Prices Decline
2026-04-18 Shafaq News- Basrah Basrah Heavy and Basrah Medium crude closed higher last week, recording gains despite a sharp decline in global oil prices.
Basrah Heavy rose by 76 cents in the latest trading session to $116.59 per barrel, posting weekly gains of $1.62, or 1.41%. Basrah Medium also increased by 76 cents to $118.69 per barrel, registering weekly gains of $1.62, or 1.38%.
Global oil prices, however, recorded a dip, falling by 16% over the week, marking their worst weekly performance since April 2020, following Iran’s announcement of reopening the Strait
https://www.shafaq.com/en/Economy/Basrah-crudes-post-weekly-gains-as-global-oil-prices-decline
Dollar Drops In Baghdad And Erbil Markets
2026-04- Shafaq News- Baghdad/ Erbil The US dollar opened Saturday's trading lower in Iraq, hovering around 152,000 dinars per 100 dollars.
According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 152,500 dinars per 100 dollars, down from the previous session's 153,350 dinars.
In the Iraqi capital, exchange shops sold the dollar at 153,000 dinars and bought it at 152,000 dinars, while in Erbil, selling prices stood at 152,600 dinars and buying prices at 152,450 dinars.
https://www.shafaq.com/en/Economy/Dollar-drops-in-Baghdad-and-Erbil-markets-9
Regional Conflict Strains Iraq’s Credit Standing
2026-04- Shafaq News- Baghdad Moody’s Investors Service on Saturday downgraded Iraq’s outlook to negative, citing rising regional tensions and increasing risks to the country’s oil-dependent economy and export flows.
The agency warned that Iraq’s reliance on oil exports leaves it vulnerable to disruptions in key maritime routes, particularly the Strait of Hormuz, through which about 90% of Iraqi crude is transported. It added that any interruption could quickly tighten state revenues and foreign currency inflows.
Although the Iraqi Ministry of Oil indicated that oil exports from the country’s southern provinces have resumed after more than 45 days of suspension, Moody’s expects it will take time for export levels to return to normal, as the US-Iranian temporary ceasefire implemented on April 8 continues to hold.
The agency previously reported an 80% drop in Baghdad’s oil production, noting that the decline pushed crude inventories to elevated levels. It also kept Iraq’s credit rating unchanged at “Caa1,” a level reflecting high credit risk.
Read more: Iraq’s oil bottleneck: Abundance trapped by dependency
https://www.shafaq.com/en/Economy/Regional-conflict-strains-Iraq-s-credit-standing
Iraq's Industrial Output Trails Imports Despite 1,200 Projects
2026-04-18 Shafaq News- Baghdad Iraq’s industrial sector generates no more than 7 trillion Iraqi dinars (≈ $5.34 billion) annually, far below imports that exceed 100 trillion dinars (≈ $76 billion), economist Manar Al-Obaidi said on Saturday.
Al-Obaidi explained that the sector includes around 1,200 medium and large projects -about 900 large private ventures and 300 medium-sized ones.
He said production remains concentrated in construction and food industries, while key manufacturing sectors such as textiles, furniture, and household goods have sharply declined, even as roughly 1,000 factories depend on imported raw materials, raising costs and weakening competitiveness.
The sector provides about 50,000 jobs, rising to an estimated 100,000 including informal labor, compared with roughly 500,000 new entrants to the labor market each year, while growth of around 5% in large projects has yet to make industry a significant contributor to Iraq’s GDP. Read more: The rentier trap: Iraq’s existential reform race
https://www.shafaq.com/en/Economy/Iraq-s-industrial-output-trails-imports-despite-1-200-projects