Iraq Economic News and Points To Ponder Thursday Afternoon 8-27-26
Oil Drops On Hopes Of Hormuz Reopening Talks
2026-08-27 Shafaq News Oil prices fell on Thursday, extending a streak of losses, on expectations that talks between Iran and Qatar might open the Strait of Hormuz and reduce supply disruptions from the war in the Middle East.
Brent crude futures were down 41 cents, or 0.5%, to $87.43 a barrel at 0330 GMT, in line for a fourth day of declines. West Texas Intermediate crude futures fell 37 cents, or 0.5%, to $81.86, in line for a fifth day of losses.
Iran and Oman are working on finalizing details of an agreement to control the Strait of Hormuz, a senior Iranian source said on Wednesday, after Iran's Revolutionary Guards said the two countries had agreed how to share the waterway that connects major Gulf oil producers to markets and its revenues.
The strait carried oil and natural gas shipments equal to about one-fifth of global consumption of the fuels before the U.S.-Israeli war on Iran started on February 28. Since Iran worked to shut the waterway in response, oil flows have dropped to about one-quarter of their pre-war level, according to ship-tracking data.
"Crude oil edged lower as the prospect of the Strait of Hormuz reopening improved amid ongoing talks," said Daniel Hynes, senior commodity strategist at ANZ, in a note on Thursday, though he cautioned "concerns over shortages in the oil market persist."
Qatar's prime minister will head to Iran on Thursday to relaunch diplomatic talks to end the conflict which is nearly six months old.
The U.S. has halted its attacks on Iran for about a month and is seeking to impose greater economic pressure on Iran, which has raised investors' expectations for an easing of the Gulf supply disruptions.
Still, the countries are far apart on their demands to end the fighting and Iran has struck shipping in the Gulf and strait to impose its control on the waterway.
Iranian officials have also said the strait would not open unless the U.S. met under an interim ceasefire agreement that was struck in June and later unraveled.
"At the heart of the dispute remains Iran's nuclear programme and that is unlikely to be resolved quickly ... Iran also understands the importance of its geographical position and the leverage that the Strait of Hormuz provides, so the risk of prolonged uncertainty remains," said Priyanka Sachdeva, head of market insights at Phillip Nova.
"As long as the risk to supply remains, some degree of war premium can continue to be priced into oil."
ANZ's Hynes also pointed to the impact the Middle East war and the Russia-Ukraine war are having on the diesel market. Middle East refineries have been damaged in that conflict and Ukraine has hit several Russian refineries, cutting exports from what was a major global diesel supplier.
The curtailment in worldwide diesel output is showing up in inventory data. The U.S. Energy Information Administration reported on Wednesday that distillate stockpiles, including diesel and heating oil, dropped by 2.2 million barrels in the week to August 21 to 103.4 million barrels.
Hynes said this is the lowest distillate stockpile level ever recorded for this time of year. (REUTERS)
https://www.shafaq.com/en/Economy/Oil-drops-on-hopes-of-Hormuz-reopening-talks
Basrah Crudes Retreat Alongside Global Decline
2026-08-27 Shafaq News- Basrah Iraq’s Basrah crude prices fell by less than 5% on Thursday, tracking a broader decline in major global oil benchmarks.
Basrah Heavy crude dropped to $74.32 per barrel, down 4.62%, while Basrah Medium crude slipped to $77.62 per barrel, a decline of $3.60, or 4.43%.
Brent crude edged lower to $87.43 per barrel, losing 41 cents, or 0.5%. US West Texas Intermediate (WTI) crude also declined, falling 37 cents, or 0.5%, to $81.86 per barrel.
OPEC’s basket also fell $4.63 to $90.28 a barrel, down 4.88%, while Oman crude on the Dubai Energy Exchange dropped $6.48 to $89.11 a barrel, a decline of 6.78%.
https://www.shafaq.com/en/Economy/Basrah-crudes-retreat-alongside-global-decline-2
Dollar Rises In Baghdad, Slips In Erbil
2026-08-27 Shafaq News- Baghdad/ Erbil The US dollar opened Thursday’s trading mixed in Iraq, hovering around 154,000 dinars per 100 dollars.
According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 153,550 dinars per 100 dollars, up from Wednesday's 154,250 dinars.
In the Iraqi capital, exchange shops sold the dollar at 154,000 dinars and bought it at 153,000 dinars.
In Erbil, selling prices stood at 153,750 dinars and buying prices at 153,700 dinars.
https://www.shafaq.com/en/Economy/Dollar-rises-in-Baghdad-slips-in-Erbil-3
Diesel Leads Iraq's July Fuel Sales
2026-08-27 Shafaq News- Baghdad Diesel outsold other fuels in Iraq in July, beating gasoline by nearly seven to one, according to figures from the state Oil Products Distribution Company.
Diesel sales reached 1.528 billion liters across both grades, far ahead of the 1.408 billion liters of fuel oil and 78 billion liters of gasoline sold on the domestic market, the company said. Kerosene and jet fuel trailed well behind, at 35 million and more than 13 million liters respectively.
The diesel figure points to Iraq's heavy dependence on the fuel, which powers the private generators that fill gaps in a national grid still short of demand, as well as trucks, farm equipment, and industry.
https://www.shafaq.com/en/Economy/Diesel-leads-Iraq-s-July-fuel-sales
Gold Prices Fall In Baghdad And Erbil
2026-08-27 Shafaq News- Baghdad/ Erbil On Thursday, gold prices hovered around 1,000,000 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 995,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 991,000 IQD. The same gold had sold for 1,008,000 IQD on Wednesday.
The selling price for 21-carat Iraqi gold stood at 965,000 IQD, with a buying price of 961,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 995,000 and 1,005,000 IQD, while Iraqi gold sold for between 965,000 and 975,000 IQD.
In Erbil, 22-carat gold was sold at 1,032,000 IQD per mithqal, 21-carat gold at 985,000 IQD, and 18-carat gold at 845,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-fall-in-Baghdad-and-Erbil-1-1
SOMO Offers Basrah Crude For Loading Outside Hormuz
2026-08-27 Shafaq News- Baghdad Iraq is seeking to sell Basrah crude through an alternative route that bypasses the Strait of Hormuz, Reuters reported on Thursday, amid disruptions to oil shipments through the strategic waterway.
According to a tender document from the State Oil Marketing Organization (SOMO) and trading sources cited by the outlet, the cargoes can be transferred between tankers off the Omani coast, allowing buyers to avoid sending vessels through the Strait of Hormuz. The tender closes on Aug. 28.
It is SOMO's second crude tender this week. Unlike Monday's offer, which required buyers to send tankers through Hormuz to load at Iraq's Basra terminal, the latest tender allows ship-to-ship loading outside the strait.
The disruption in the strategic waterway has sharply reduced Iraq's southern crude exports. Shipments averaged about 1.4 million barrels per day (bpd) in July, up from roughly 500,000 bpd in June and 100,000 bpd in May, but remained well below pre-disruption Basrah exports of more than 3.3 million bpd.
With shipments still constrained, Baghdad is 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/SOMO-offers-Basrah-crude-for-loading-outside-Hormuz