Iraq Economic News and Points To Ponder Thursday Afternoon 2-11-26
Gold Prices Rise In Baghdad, Decline In Erbil
2026-02-12 Shafaq News- Baghdad/ Erbil Gold prices increased in Baghdad on Thursday while declining in Erbil, according to a survey by Shafaq News Agency.
In Baghdad’s wholesale markets on Al-Nahr Street, the selling price of one mithqal (approximately five grams) of 21-carat Gulf, Turkish, and European gold reached 1,072,000 IQD, with a buying price of 1,068,000 IQD, up from 1,066,000 IQD recorded on Wednesday.
The selling price of 21-carat Iraqi gold stood at 1,042,000 IQD, while the buying price reached 1,038,000 IQD.
At retail jewelry shops, 21-carat Gulf gold was offered between 1,075,000 and 1,085,000 IQD per mithqal, whereas Iraqi gold ranged between 1,045,000 and 1,055,000 IQD.
In Erbil, gold prices declined, with 22-carat gold priced at 1,154,000 IQD per mithqal, 21-carat at 1,102,000 IQD, and 18-carat at 945,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-rise-in-Baghdad-decline-in-Erbil
Two Wells Return To Service At Ain Zalah Field In Iraq’s Nineveh
2026-02-12 Shafaq News- Nineveh Iraq’s North Oil Company has restored production from two wells at the Ain Zalah oil field in Nineveh province, a senior official told Shafaq News.
Iyad Khalaf, deputy head of the Nineveh Oil Authority, said on Wednesday that the work forms part of a broader plan to reactivate idle or underperforming wells and increase output. National engineering teams, he clarified, used coiled tubing and nitrogen injection to remove blockages and improve flow, cutting repair time and costs while delivering measurable gains. “Similar operations are planned for additional wells under the approved program.”
The authority is coordinating with company management to secure the technical and logistical support required to sustain operations while maintaining strict safety and environmental standards, Khalaf added, noting that the upgrades are expected to stabilize production across Nineveh’s fields and reinforce their contribution to the national economy.
According to the North Oil Company, the first phase focused on well AZ-12, where internal deposits had restricted output, while the second phase targeted well AZ-20, where teams cleaned and stimulated the production line leading to the Ain Zalah gas separation station, enabling the well to resume output and increasing overall production. Both operations concluded without technical or operational issues.
Speaking to Shafaq News, oil analyst Ali Khalil described the approach as “important,” pointing out that optimizing existing capacity can raise recovery rates and reduce operating costs more efficiently than relying solely on new drilling.
The Ain Zalah field was discovered in 1952, west of Mosul Dam in northern Iraq. It extends about 17 kilometers in length and three kilometers in width and contains 29 wells.
Crude Prices Move Up As Investors Monitor US-Iran Negotiations
2026-02-12 Shafaq News Oil prices edged up on Thursday morning as investors worried about escalating tensions between the U.S. and Iran, on fears that any attacks on Tehran or shipping could lead to supply disruptions.
Brent crude oil futures were up 27 cents, or 0.39%, at $69.67 a barrel at 0350 GMT. U.S. West Texas Intermediate crude rose 29 cents, or 0.45%, to $64.92.
Both benchmarks settled higher on Wednesday. Brent futures gained 0.87% and WTI gained more than 1.05%, as investor worries about U.S.-Iran tensions overshadowed a build in U.S. crude stocks.
U.S. President Donald Trump said after talks with Israeli Prime Minister Benjamin Netanyahu on Wednesday that they reached no "definitive" agreement on how to move forward with Iran, but he insisted negotiations with Tehran would continue.
On Tuesday, Trump said he was considering sending a second aircraft carrier to the Middle East if a deal is not reached with Iran, even as Washington and Tehran prepared to resume talks.
U.S. and Iranian diplomats held indirect talks last week in Oman. The date and venue of the next round of U.S.-Iran talks have yet to be announced.
A sustained break above a $65–$66 level would require further escalation in the Middle East, while any de-escalation could quickly trigger profit-taking back toward $60-$61 in WTI, IG analyst Tony Sycamore said.
U.S. job growth unexpectedly accelerated in January and the unemployment rate fell to 4.3%, the Labor Department said, signalling health in the economy.
"The resilient U.S. economy is also supporting oil demand expectations," said Mingyu Gao, chief researcher for energy and chemicals at China Futures.
A hefty build in U.S. crude inventories capped price gains. U.S. crude inventories rose by 8.5 million barrels to 428.8 million barrels last week, the Energy Information Administration said, far exceeding analysts' expectations in a Reuters poll for a 793,000-barrel rise.
However, since the start of the year, global oil inventory builds have generally come in below expectations and net long positions in overseas crude oil futures and options have not yet reached overweight levels, said Gao.
Oil prices are therefore likely to remain biased to the upside, supported by the U.S.-Iran situation, tighter sanctions on Russian oil and expectations of reduced exports, Gao added.
(Reuters) https://www.shafaq.com/en/Economy/Crude-prices-move-up-as-investors-monitor-US-Iran-negotiations
Iranian Rial Gains Against Foreign Currencies
2026-02-11 Shafaq News- Tehran Foreign currencies weakened against the Iranian rial on Wednesday, with the US dollar falling by about 10,000 rials in Tehran’s open market, according to data from exchange shops.
The dollar traded at 1,627,000 rials, down 0.61% from 1,637,000 rials a day earlier. The euro declined to 1,931,000 rials, losing 15,000 rials, or 0.77%, while the British pound dropped to 2,216,000 rials, a decrease of 15,000 rials, or 0.67%.
Data released by the Statistical Center of Iran showed annual inflation reaching 60% in January 2026, up 7.4 percentage points from the previous month. Food and beverage inflation rose to 89.9%, partly linked to the removal of the preferential exchange rate for essential imports, while monthly inflation stood at 7.9%, with prices in the food, beverages, and tobacco category increasing by 13.7%, compared with a 4.4% rise in non-food goods and services.
https://www.shafaq.com/en/Economy/Iranian-rial-gains-against-foreign-currencies
UN: Digital Transformation In Iraq Reduces Corruption Risks And Strengthens Institutional Confidence
INA–Baghdad The United Nations Development Programme’s (UNDP) project to strengthen arbitration and combat corruption in Iraq confirmed on Tuesday that Iraq’s score of 28 out of 100 on the 2025 Corruption Perceptions Index reflects ongoing reform efforts.
While noting that the National Anti-Corruption Strategy has enhanced institutional coordination, the project emphasized that Iraq’s expansion in digital public services has contributed to reducing opportunities for corruption.
Project Manager Yama Torabi told the Iraqi News Agency (INA) that Iraq’s score “was not surprising to many Iraqis, given the accumulated effects of corruption on citizens, particularly in obtaining licenses and approvals, accessing public services, and building trust in institutions.” He added that “the fundamental question is not whether corruption exists, but what this result reveals about Iraq’s current position and its potential for future development.”
Torabi explained that the Corruption Perceptions Index is often misunderstood as a simple numerical ranking, whereas it is, in fact, a confidence indicator reflecting the views of citizens, the business community, investors, and international partners regarding the reliability of state institutions, the consistency of rule enforcement, the reality of accountability, and the sustainability of reforms.
He stressed the importance of the index for Iraq, noting that its direct impact influences the decisions of investors, lenders, and development partners, who rely on it to assess risks and determine the nature of economic engagement—whether short-term or long-term, speculative or productive, and limited or broad-based.
Torabi noted that Iraq has taken clear steps in recent years to strengthen its anti-corruption framework, including the National Anti-Corruption Strategy (2021–2025), which helped align institutions around shared priorities. He also pointed to the preparation of a follow-up strategy for 2025–2030, reflecting the intention to sustain reform efforts.
He observed that perception indicators, including the Corruption Perceptions Index, tend to improve very slowly, particularly at the stage where plans and announcements must be translated into consistent institutional practices.
In this context, he emphasized that institutions such as the Federal Integrity Commission and its counterpart in the Kurdistan Region are expected to go beyond case investigations and contribute to building a comprehensive integrity system encompassing prevention, oversight, coordination, and inter-agency cooperation.
Torabi explained that this shift reflects a broader understanding of corruption as not merely a legal issue but a governance challenge that arises when power remains unchecked, rules are unclear, and enforcement is uneven. He noted that international experiences show many countries stumble after adopting strategies, before institutions are able to demonstrate equal application of rules across sectors and political phases.
He described Iraq as being in a similarly challenging consolidation phase, highlighting digital transformation as one of the most prominent examples. He stressed that Iraq’s expansion in digital public services—such as passport issuance, national ID cards, and the government portal—has reduced direct interaction, thereby limiting opportunities for corruption, enhancing transparency through standardized procedures, and increasing traceability. He added that these measures have been met with tangible public approval.
Torabi pointed out that international experience confirms digital transformation alone does not enhance credibility unless it is embedded within broader governance reforms. He cited Georgia and Estonia as examples where digitalization was accompanied by administrative and institutional reforms that strengthened discipline and accountability, making technology an essential tool for enforcing institutional rules.
He emphasized that digital transformation is fundamentally a governance choice, explaining that technology can build trust and limit discretionary power when rules are clear and oversight is effective. Conversely, digital systems may replicate existing power imbalances if these conditions are absent.
Torabi underscored the importance of digital public infrastructure that shifts the focus from individual services to integrated foundational systems through which institutional credibility is built on a wider scale. He noted that the Corruption Perceptions Index also reflects the daily concerns of Iraqis regarding equal rule enforcement, the independence of oversight bodies, and the consistency of accountability mechanisms.
He added that these challenges intersect with environmental and climate-related pressures, such as water scarcity, land degradation, and climate investment requirements, which further heighten the need for integrity and transparency in governance. He stressed that Iraq’s low score in the 2025 index highlights a gap between reform intentions and citizens’ lived experience.
Torabi concluded by emphasizing that UNDP’s engagement in Iraq—including its project to strengthen arbitration and combat corruption for environmental justice—focuses on institutionalizing reform, enhancing coordination, and consolidating digital transformation grounded in governance principles.
He noted that while perception indicators respond slowly, their improvement signals real and sustainable reforms, and that the core challenge remains transforming reform momentum into institutional trust and, ultimately, long-term prosperity.