Iraq Economic News and Points To Ponder Saturday Afternoon 8-22-26
Iraq Secures Alternative Oil Export Routes Amid Hormuz Disruptions
2026-08-21 Shafaq News- Baghdad Iraq has secured alternative routes for oil exports and activated border crossings to sustain trade as disruptions through the Strait of Hormuz strain the country’s economy, Prime Minister Ali Faleh Al-Zaidi announced on Friday.
Speaking at the eighth Baghdad International Dialogue Conference, Al-Zaidi said the government has “more than one solution” to manage the regional crisis. He acknowledged “difficult and challenging circumstances,” calling restrictions in Hormuz a major economic obstacle and noting that the waterway “did not close even during the harshest days of the sanctions.”
Iraq, OPEC’s second-largest producer, relies on crude for about 90% of federal revenue, making the Strait —normally a conduit for roughly one-fifth of global oil supplies— critical to the country’s finances. Oil Minister Basim Al-Abadi recently put July exports at about 49 million barrels, while shipments have averaged around two million barrels per day since early August, their highest level since the crisis began. Al-Zaidi this week ordered oil companies to operate around the clock to boost output.
Read more: Iraq pushes new oil routes beyond Hormuz
Over the next six years, Al-Zaidi said the government aims to raise Iraq’s OPEC production quota to between eight and 10 million barrels per day.
He added that the draft budget for next year would soon be submitted, with electricity and solar power among its priorities, and assured public employees and retirees that government payments remain secure. Al-Zaidi projected that changes to domestic fuel consumption under a new economic model would save 17.8 trillion Iraqi dinars ($13.53B) annually.
On weapons outside state authority, the premier indicated that political forces had agreed on the principle of bringing them under government control and were working out a mechanism for handing them over, ruling out armed confrontation with factions. He also maintained that the government’s anti-corruption campaign retains broad political backing.
Read more: Corruption arrests in Iraq pass 210 under PM al-Zaidi
Organized by the Iraqi Dialogue Institute, the eighth Baghdad International Dialogue runs through Aug. 22, bringing together government, political, diplomatic, and academic figures to examine developments in Iraq and the region.
https://www.shafaq.com/en/Economy/Iraq-secures-alternative-oil-export-routes-amid-Hormuz-disruptions
Basrah Crude Gains Over 28% On Week
2026-08-22 Shafaq News- Basrah Basrah Heavy and Basrah Medium crude each gained $18.51 a barrel over the week, rising 30.16% and 28.62%, respectively.Both grades also rose in the final trading session, tracking gains in global oil prices.
Basrah Heavy gained $1.53 a barrel, or 1.95%, in the final session to settle at $79.89. Basrah Medium also rose $1.53 a barrel, or 1.87%, to close at $83.19.
Global oil prices moved higher. West Texas Intermediate gained $0.01, or 0.01%, to $86.84 a barrel, while Brent climbed $0.27, or 0.29%, to $94.05. https://www.shafaq.com/en/Economy/Basrah-crude-gains-over-28-on-week
Iran Allows Iraqi Oil Tankers Through Hormuz
2026-08-22 Shafaq News- Tehran Iran has allowed a number of Iraqi oil tankers to pass through the Strait of Hormuz following repeated requests from Baghdad, state-run Iranian media reported on Saturday.
The outlets did not specify how many tankers received permission, when they would cross or how much crude they were carrying.
Iraqi Parliament Speaker Haibet Al-Halbousi had urged Tehran to give Iraqi oil exports “special consideration” through Hormuz during talks in Baghdad with his Iranian counterpart Mohammad Bagher Ghalibaf, who pledged to “raise the issue” after returning to Iran.
Iraq has also been seeking arrangements with Iran and the United States to secure crude shipments through the waterway. A government source told Shafaq News earlier this week that the State Organization for Marketing of Oil (SOMO) was negotiating with US and German shipping companies over Iraqi-flagged tankers.
Kpler data showed only seven commodity vessels crossed the strait on Thursday, down from 14 a day earlier, with no very large crude carriers or liquefied natural gas tankers among them.
The disruption has sharply reduced Iraq’s southern crude exports. Shipments averaged about 1.4 million barrels per day in July, up from roughly 500,000 bpd in June and 100,000 bpd in May, but still well below pre-disruption Basrah exports of more than 3.3 million bpd.
Baghdad is also pursuing alternative export routes through Turkiye, Syria, and Jordan to reduce its dependence on Hormuz. A proposed pipeline to Syria’s Baniyas port could take about four years to build and cost at least $15 billion.
Read more: No exit but Hormuz: Iraq's economic vulnerability exposed
https://www.shafaq.com/en/Economy/Iran-allows-Iraqi-oil-tankers-through-Hormuz
US Dollar Rises Against Dinar In Baghdad And Erbil
2026-08-22 Shafaq News- Baghdad/ Erbil The US dollar edged higher against the Iraqi dinar on Saturday, hovering around 154,000 dinars per $100 in Baghdad and Erbil, the capital of the Kurdistan Region.
At the Al-Kifah and Al-Harithiya exchanges in Baghdad, the dollar traded at 154,300 dinars per $100, up from 154,150 dinars on Thursday, according to a Shafaq News market survey.
In Baghdad's local exchange shops, the selling price reached 154,750 dinars per $100, while the buying price stood at 153,750 dinars.
Rates rose in Erbil as well, where the dollar sold at 154,050 dinars per $100 and was bought at 154,000 dinars.
https://www.shafaq.com/en/Economy/US-Dollar-rises-against-dinar-in-Baghdad-and-Erbil
Gold climbs past 1M IQD in Baghdad and Erbil
2026-08-22 Shafaq News- Baghdad/ Erbil On Saturday, gold prices hovered around one million IQD per mithqal in Baghdad and Erbil markets, according to a Shafaq News market survey.
Gold prices on Baghdad’s Al-Nahr Street recorded a selling price of 1,006,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 1,002,000 IQD. The same gold sold for 980,000 IQD on Thursday.
The selling price for 21-carat Iraqi gold stood at 976,000 IQD, while the buying price reached 972,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 1,005,000 and 1,015,000 IQD, while Iraqi gold sold for between 975,000 and 985,000 IQD.
https://www.shafaq.com/en/Economy/Gold-climbs-past-1M-IQD-in-Baghdad-and-Erbil
Iraqi Trucks Join TIR Transit Routes For First Time
2026-08-22 Shafaq News- Baghdad Iraqi trucks have begun operating under the international TIR transit system for the first time, joining cross-border routes that had previously been handled exclusively by foreign carriers inside Iraq, the General Company for Land Transportation announced on Saturday.
Company Director Murtadha Al-Shahmani put the number of TIR journeys across Iraqi territory since the system became operational at more than 5,000. Administered by the International Road Transport Union (IRU), the network connects more than 79 countries, including Iraq.
Al-Shahmani said Iraqi trucks had begun transporting cargo from Saudi Arabia through the Arar border crossing toward Central Asia, which he called “an opportunity to generate revenue from Iraq’s position as a regional transit corridor.”
https://www.shafaq.com/en/Economy/Iraqi-trucks-join-TIR-transit-routes-for-first-time
Kirkuk Targets 1M Bpd Oil Exports Through Turkiye
026-08-22 Shafaq News- Kirkuk Iraq aims to raise crude exports through Turkiye to one million barrels per day (bpd) as Kirkuk expands production capacity, Governor Mohammed Samaan Agha told Shafaq News on Saturday.
Agha said a Turkish deputy energy minister is expected to visit Kirkuk soon for talks on oilfield development, energy infrastructure and bilateral cooperation, particularly crude exports.
He linked the export target to Iraq’s agreement with BP to redevelop major Kirkuk fields, including the Baba and Avanah domes and the Bai Hassan, Jambur and Khabbaz fields.
The fields contain more than 3 billion barrels of oil equivalent in initial gross recoverable resources. ConocoPhillips agreed in July to acquire a 42% stake in BP Energy Company of Kirkuk Limited, while Turkiye’s state-owned TPAO agreed to acquire 15%.
On August 1, Iraq and Turkiye signed a one-year agreement to continue transporting crude through the Iraq-Turkiye Pipeline to Ceyhan, covering about 750,000 bpd of capacity while negotiations continue over a broader framework.
Actual northern exports remain well below that level. Shafaq News reported on August 13 that flows through the route had fallen to around 130,000 bpd because of production suspensions in the Kurdistan Region and the halt of some Basrah crude shipments routed north.
Prime Minister Ali Al-Zaidi previously said Iraq aims to raise national oil output to between 8 million and 10 million bpd within six years while expanding export routes through Turkiye, Syria, and Jordan.
https://www.shafaq.com/en/Economy/Kirkuk-targets-1M-bpd-oil-exports-through-Turkiye
Iraq’s State Banks Scale Back Lending Without Credit Plans
2026-08-22 Shafaq News- Baghdad Most of Iraq’s state-owned banks have halted or sharply curtailed lending and several are operating without clear credit plans for 2026, an informed source told Shafaq News on Saturday.
The source said the lack of credit plans has restricted financing across a range of services, including construction and renovation loans, funding for small and medium-sized enterprises (SMEs), investment and housing projects, and electronic personal advances.
The source said the slowdown was weakening the role of state banks in financing Iraq’s economy, particularly for SMEs and investors seeking funds to launch or expand projects.
The source called on the government, parliament and its Finance Committee to examine the banks’ lending activity and question bank management over the decline in lending and advances, the absence of credit plans and limited investment financing.
Restoring lending programs is essential to supporting investment and stimulating economic activity, the source said, noting that the government program calls for investment support through loans and banking initiatives.
The source also urged state banks to adopt clear credit plans with measurable targets to direct financing toward productive sectors and investment projects and strengthen the banking system’s role in economic development.
In February, major state-owned banks, including Rafidain and Rasheed, had halted loans and advances amid liquidity shortages and a lack of clear credit planning.
Earlier this month, the government began considering leadership changes at several state banks, with managers expected to be evaluated partly on their ability to expand access to loans, salary advances and other banking services.
Read more: Iraq’s private banks: Capital Growth and the structural credit gap
https://www.shafaq.com/en/Economy/Iraq-s-state-banks-scale-back-lending-without-credit-plans
Parliament To Hear Finance Minister On Iraq’s Financial Crisis
2026-08-22 Shafaq News- Baghdad Iraqi Finance Minister Faleh Al-Sari has requested to appear before parliament to explain the country’s financial crisis and proposed solutions, First Deputy Speaker told Shafaq News on Saturday.
Adnan Fayhan said the request would be placed on the agenda of an upcoming parliamentary session, with a date expected to be set within days. He added that a borrowing bill would also be listed for a first reading.
Earlier this week, Al-Sari said a financial shortfall had disrupted payments to public employees, pensioners, and social welfare recipients, with monthly salary obligations reaching about 7.8 trillion Iraqi dinars (about $5.95 billion).
Read more: Iraq turns to bank borrowing to cover August salaries amid oil-revenue collapse
https://www.shafaq.com/en/Economy/Parliament-to-hear-finance-minister-on-Iraq-s-financial-crisis