Iraq Economic News and Points To Ponder Tuesday Afternoon 2-3-26
Iraq: Committed To Strengthening Cooperation With Regional And International Financial Institutions
BAGHDAD Finance Minister Taif Sami affirmed on Monday Iraq's commitment to strengthening cooperation with regional and international financial institutions. Sami participated in the 10th Arab Public Finance Forum, which commenced today in Jumeirah, Dubai. The forum was jointly organized by the UAE Ministry of Finance and the Arab and International Monetary Funds, as part of the preparatory day for the World Government Summit 2026, according to a statement from the Ministry of Finance, received by the Iraqi News Agency - INA.
Iraq's participation was marked by “active engagement in the discussion sessions, which included Arab finance ministers and a select group of international economic experts.”
“These sessions addressed prospects for economic growth in the Arab region and ways to enhance financial sustainability in light of current global challenges. The session's agenda focused on discussing the Arab world's economic and financial priorities for the coming years, in addition to reviewing the key issues and contributions made by the Arab Financial Forum during the decade spanning from 2015 to 2025.
The forum also provided a vital opportunity for participants to consider how to develop the forum's tools to best serve their goals, visions, and future needs."
According to the statement, Sami emphasized "Iraq's commitment to strengthening cooperation with regional and international financial institutions in a way that serves the government's vision of achieving financial stability and developing public resource management."
“This forum represents an opportunity to discuss policies that support sustainable development, while emphasizing Iraq's continued efforts to modernize its financial and tax systems in line with international standards," she pointed out.
The statement concluded that "the forum discussed the most prominent challenges related to the digital transformation of public finances and the role of technology and artificial intelligence in enhancing governance efficiency and improving public spending management. It also explored ways to strengthen the resilience of public finances in the face of global economic shocks and enhance the ability to adapt to financial fluctuations, thus ensuring the stability of sustainable economic paths."
Oil Falls On Possible US-Iran De-Escalation, Firm Dollar
Oil prices fell on Tuesday, easing for a second day, as market participants weighed the possibility of a de-escalation in U.S.-Iran tensions, while a firmer dollar placed greater downside pressure on prices.
Brent crude futures fell 39 cents, or 0.5%, at $65.91 per barrel at 0330 GMT. U.S. West Texas Intermediate crude was at $61.83 per barrel, down 31 cents, or 0.5%.
Iran and the U.S. are expected to resume nuclear talks on Friday in Turkey, officials from both sides told Reuters on Monday, and Trump warned that with big U.S. warships heading to Iran, bad things could happen if a deal was not reached.
"The sharp up-and-down moves in oil prices over the last few sessions look more like sentiment-driven trading rather than any major shift in fundamentals," said Phillip Nova senior market analyst Priyanka Sachdeva. "After last week's rally, markets quickly gave back gains as broader risk assets also turned volatile."
"With no fresh escalation on the geopolitical front and macro data still mixed, oil clearly failed to hold onto gains."
Weighing on prices further, the U.S. dollar index (.DXY), opens new tab hovered near a high of more than a week. A stronger greenback hurts demand for dollar-denominated crude from foreign buyers.
"The continued recovery in the US dollar yesterday, following President Trump's nomination of Kevin Warsh as the next Federal Reserve chair, also exerted downward pressure on oil prices," ING analysts said in a note.
On the trade front, Trump on Monday unveiled a deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.
"Overnight, the US and India agreed on a trade deal ... if we do see this happen, it will only lead to a further increase in the amount of Russian oil floating at sea," the ING analysts said.
Trump announced the deal on social media following a call with Indian Prime Minister Narendra Modi, noting that India had agreed to buy oil from the U.S. and possibly Venezuela.
Some analysts said they were expecting volatile price movements this month.
"Looking ahead into February, prices are likely to remain choppy and range-bound ... (they) are expected to stay highly reactive to headlines and macro cues rather than a decisive trend, with risk skewed to the downside," said Phillip Nova's Sachdeva.
SOURCE: REUTERS https://ina.iq/en/economy/45221-oil-falls-on-possible-us-iran-de-escalation-firm-dollar.html
Gold Recovers Lost Ground After Record-Breaking Volatility
2026-02-03 Shafaq News Gold and silver rebounded more than 2% on Tuesday after a sharp selloff that was triggered by the nomination of Kevin Warsh as the next Fed chair and higher margin requirements at CME Group.
Spot gold climbed 2.2% to $4,767.33 per ounce, after touching a near one-month low on Monday. Bullion scaled a record high of $5,594.82 on Thursday.
U.S. gold futures for April delivery were up 3% at $4,791.10 per ounce.
"It's a reasonable call that this is somewhere around fair value potentially, if you consider that we saw a market behaving fairly irrationally for a few weeks there," said Kyle Rodda, a senior market analyst at Capital.com.
"The current prices take gold and silver back to where they were, early in the second half of January."
Gold rose nearly 13% in January in its biggest monthly gain since November 2009, while silver jumped 19%.
"The markets endorsed Warsh's nomination by U.S. President Donald Trump as someone relatively credible and so we saw the dollar move on that basis and again, that was kind of like the pin that popped the big precious metals," Rodda added.
CME Group (CME.O) raised margin requirements on precious metal futures after Monday's market close.
The U.S. Bureau of Labor Statistics said on Monday the closely watched employment report for January would not be released this Friday because of a partial shutdown of the federal government.
The House of Representatives, though, was due to convene on Monday to take up legislation, with a final vote expected on Tuesday. Unlike last year's record 43-day shutdown, which caused an economic data blackout, the Commerce Department is funded until September 30.
Investors expect at least two Federal Reserve interest rate cuts in 2026. Non-yielding bullion tends to perform better in low-interest-rate environments. Spot silver rose 2.8% to $81.61 an ounce. It had hit a record high of $121.64 on Thursday.(Reuters) https://www.shafaq.com/en/Economy/Gold-recovers-lost-ground-after-record-breaking-volatility
Iran’s Oil Sales Via The Gulf Continue Normally
2026-02-03 Shafaq News- Tehran Iran’s oil sales and transfer operations to buyers continue under normal conditions, Fars News cited the National Iranian Oil Company on Tuesday.
A well-informed source told Fars that the pace of oil sales has improved significantly over the past two weeks, adding that the level of discounts offered by Iran is far lower than figures reported by some foreign media outlets.
“All oil tankers currently departing Iran have identified buyers,” sources told Fars.
Earlier, the US Treasury Department sanctioned nine oil tankers and eight companies it said are part of Iran’s “shadow fleet,” stepping up pressure on Tehran over the alleged killing of protesters. It said the vessels and their owners or managers, based in India, Oman, and the UAE, helped export hundreds of millions of dollars’ worth of Iranian oil and petroleum products in violation of sanctions.
Oil prices fell on Tuesday, easing for a second day, as market participants weighed the possibility of a de-escalation in US-Iran tensions, while a firmer dollar placed greater downside pressure on prices.
Brent crude futures fell 39 cents, or 0.5%, to $65.91 per barrel at 03:30 GMT. US West Texas Intermediate crude was at $61.83 per barrel, down 31 cents, or 0.5%. https://www.shafaq.com/en/Economy/Iran-s-oil-sales-via-the-Gulf-continue-normally
Iraq’s Nasiriyah Oil Field Raises Production To 90K Barrels Per Day
2026-02-03 Shafaq News- Dhi Qar Crude oil production at the Nasiriyah oil field in southern Iraq’s Dhi Qar province has surged for the first time from 52,000 to 90,000 barrels per day, marking a significant boost to national output, the Dhi Qar Oil Company told Shafaq News on Tuesday.
Rashid Sharhan, the company’s deputy director for production affairs, said that the increase resulted from sustained technical and engineering efforts, including upgrades to field infrastructure, improved efficiency of producing wells, and the introduction of modern technologies that helped raise output levels.
The company, he added, has begun drilling a new exploratory well at the Abu Al-Khaima oil field and an oil well at the Al-Battah field within an exploration block, as part of efforts to assess reservoirs and expand reserves to support medium- and long-term production sustainability.
“The company also plans to drill 20 additional oil wells in the next phase —10 each at the Subba and Nasiriyah fields— under a broader development program aimed at boosting output capacity and meeting rising crude demand.”
On associated gas, he indicated that the Dhi Qar Oil Company is working to utilize all produced volumes and prevent waste through projects focused on gas collection and processing to supply the national grid, pointing out that increasing associated gas production directly supports crude oil and gas output while reducing flaring.
According to Sharhan, the company is coordinating with the Oil Ministry and relevant authorities to advance associated gas investment projects in line with national plans to maximize resources, reduce imports, and support the electricity and industrial sectors.
Last month, the Organization of the Petroleum Exporting Countries (OPEC) data showed that Iraq ranked fourth worldwide among countries with the largest proven crude oil reserves, estimated at around 145 billion barrels.
Iraq, OPEC’s second-largest producer, continues to deepen its reliance on crude oil, which still provides more than 90% of government revenue, as it expands capacity through new projects. The Iraqi Drilling Company reported drilling and rehabilitating 237 oil wells nationwide in 2025, underscoring Baghdad’s strategy to boost upstream output despite repeated calls for economic diversification.
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