Iraq Economic News and Points To Ponder Tuesday Afternoon 3-10-26
Opinion: US-Iran War To Shake Global Economy But Remain Short
2026-03-10 Shafaq News- Washington The war between the United States and Iran will have broad repercussions for the global economic environment, a financial analyst told Shafaq News on Tuesday, suggesting the conflict is unlikely to last long.
According to analyst Peter Tanos, oil prices will remain elevated until political leaders reach a settlement. “The US financial system is capable of absorbing the current pressures, as its resilience allows it to withstand the war’s economic repercussions without posing a serious threat to financial stability.”
Tanos said that the US Federal Reserve faces a complex economic dilemma as employment data weakens while inflation risks rise due to the war. The Fed may opt to keep interest rates unchanged for the time being because cutting them to stimulate the economy could increase inflationary pressure.
“The dollar will remain the world’s leading reserve currency and a haven during geopolitical crises,” he indicated, noting that the dollar may face futures competition, but it is likely to remain the primary choice in global trade.
Regarding precious metals markets, Tanos said gold will continue to play its traditional role as a safe haven during periods of uncertainty, though he warned against excessive expectations of further gains. Prices surged over the past year, he noted, meaning the metal’s capacity for substantial additional increases may be limited.
Assessing the trajectory of the conflict, Tanos suggested that “the United States and Israel maintain complete air superiority over Iran and can target any location,” making Tehran’s ability to withstand such pressure limited over time. He predicted that initiatives to end the war could emerge within about a week as military and economic pressures intensify. For Shafaq News, Mostafa Hashem, Washington, D.C.https://www.shafaq.com/en/Economy/Opinion-US-Iran-war-to-shake-global-economy-but-remain-short
Foreign Oil Companies Leave Iraq’s Akkas Gas Field Over Security Concerns
2026-03-10 Shafaq News- Al-Anbar Foreign oil companies operating at Iraq’s Akkas gas field have begun temporarily leaving the site in Al-Anbar province pending a security assessment, a source in the Provincial Council told Shafaq News on Tuesday.
The companies decided to suspend their presence at the field less than two months after starting operational work, and the move will remain in effect until the security situation in the area is reassessed.
Days earlier, the US-based Gulf Keystone Petroleum halted operations at the Shaikan oil field in the Kurdistan Region as a precautionary measures, without specifying how long the suspension would last. A similar move was taken by Dubai-listed Dana Gas and Oslo-listed DNO.
Eighteen Chinese oil experts and workers from the US oil services company Weatherford, operating in the Rumaila oil field also decided to left Iraq “temporarily” through the Safwan border crossing in Basra province, however, a source told Shafaq News that due to a lack of prior coordination with Kuwaiti authorities the group is still at the crossing. https://www.shafaq.com/en/Economy/Foreign-oil-companies-leave-Iraq-s-Akkas-gas-field-over-security-concerns
Read more: Iraq’s oil lifeline under pressure: US-Iran war reshapes Baghdad’s economic calculus
Iraq Exports 6.5M Barrels Of Oil To US In February
2026-03-10 Shafaq News- Baghdad/ Washington Iraq exported 6.552 million barrels of crude oil to the United States in February, the US Energy Information Administration (EIA) said on Tuesday.
According to the EIA, the volume declined from 7.037 million barrels exported in January, placing Iraq fourth among oil suppliers to the United States, behind Canada, Saudi Arabia, and Mexico. Iraqi shipments averaged 249,000 barrels per day in the first week of February, 371,000 bpd in the second, 160,000 bpd in the third, and 154,000 bpd in the fourth.
Among Arab exporters, Iraq placed second after Saudi Arabia, which shipped 15.176 million barrels, while Libya followed with 2.99 million barrels. https://www.shafaq.com/en/Economy/Iraq-exports-6-5M-barrels-of-oil-to-US-in-February
Gulf Giants Slash 6.7M Barrels From Daily Output
2026-03-10 Shafaq News- Washington Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait have cut oil production by a combined 6.7 million barrels per day, about one-third of their total output, Bloomberg reported on Tuesday.
According to the data, Saudi Arabia reduced production by 2 million to 2.5 million barrels daily, while Iraq implemented the largest cut, lowering output by roughly 2.9 million barrels per day. The UAE trimmed production by 500,000 to 800,000 barrels, and Kuwait by around 500,000 barrels per day.
The cuts came as Iran’s Islamic Revolutionary Guard Corps (IRGC) declared it has “full control” over the chokepoint, while ship-tracking services showed dozens of tankers idling on both sides. The Strait of Hormuz handles roughly 4.5% of total global trade annually. Oil prices jumped more than 20% on Monday to their highest levels since July 2022, as tensions escalate and concerns mount over potential disruptions to energy supplies and shipping through the waterway. https://www.shafaq.com/en/Economy/Gulf-giants-slash-6-7M-barrels-from-daily-output
Read more: Iraq’s lifeline under pressure: US-Iran war reshapes Baghdad’s calculus
Iraq Cuts 2.9M Bpd, Biggest Oil Production Reduction Globally
2026-03-10 Shafaq News- Baghdad Iraq has cut its oil production by about 2.9 million barrels per day, making it the country with the largest production reduction globally amid the US-Israeli war with Iran and the closure of the Strait of Hormuz, an economic said on Tuesday.
In a statement, Nabil Al-Marsoumi noted that Saudi Arabia reduced its output by between 2 and 2.5 million barrels per day, while the United Arab Emirates cut production by about 800,000 to 900,000 barrels per day, and Kuwait by around 500,000 barrels per day. The combined reductions by these countries reached approximately 6.7 million barrels per day, equivalent to one-third of their oil production and about 6% of global supply.
Despite these cuts, oil prices fell below $90 per barrel, after the Group of Seven (G7) asked the International Energy Agency (IEA) to prepare plans to release emergency oil reserves to address supply shortages and rising prices.
https://www.shafaq.com/en/Economy/Iraq-cuts-2-9M-bpd-biggest-oil-production-reduction-globally
Iraq Moving Forward With Securing Oil Exports, Prime Minister’s Adviser Says
Baghdad – INA Financial adviser to the Prime Minister, Muddher Mohammed Salih, affirmed on Tuesday that Iraq is proceeding with efforts to secure its oil exports in order to maximize revenues and address the budget deficit.
He also reviewed alternative export routes available to Iraq to confront geopolitical challenges, stressing that the continued flow of Iraqi oil is essential to secure 90 percent of state revenues.
Salih told the Iraqi News Agency (INA) that Iraq will continue exporting oil from both an economic and practical standpoint, even amid rising prices, noting that the Iraqi economy relies heavily on oil revenues, which account for more than 85–90 percent of public budget income.
He explained that the continuity of exports does not depend solely on price levels but on several key factors, most notably security stability along maritime export routes, particularly through the Strait of Hormuz, the logistical capacity of southern ports in Basra, and global demand for oil—especially from Asian countries such as China and India. He noted that higher prices provide Iraq with greater incentives to increase exports in order to maximize revenue.
Salih added that if oil prices remain elevated for an extended period, Iraq could potentially reduce or cover a large portion of the budget deficit, increase the government’s fiscal surplus, and strengthen the foreign reserves of the Central Bank of Iraq.
He indicated that this outcome depends on three main factors: daily production levels—estimated at 3–4 million barrels per day—high government spending within the budget, and compliance with production quotas under OPEC and the OPEC+ alliance.
He stressed that while higher prices are helpful, they are not the sole solution to the deficit, as Iraq’s structural economic problem lies in its near-total dependence on oil. He noted that if exports through the Gulf encounter security or geopolitical challenges, as is currently the case, Iraq possesses several alternative export routes.
Among these alternatives, Salih highlighted the pipeline through Turkey, specifically the Kirkuk–Ceyhan pipeline leading to the Turkish port of Ceyhan on the Mediterranean Sea, which reduces reliance on the Strait of Hormuz.
He also referred to exports via southern ports in Basra, including the Basra Oil Port and Khor Al-Amaya Port, which currently represent the primary outlets for Iraqi exports.
He further noted the proposed Iraq–Jordan pipeline project, which would extend to the Jordanian port of Aqaba, granting Iraq access to the Red Sea. In addition, he mentioned the possibility of future connectivity with Saudi Arabia through the revival of older export pipelines toward the kingdom and the Red Sea.
Salih pointed out that other alternatives include expanding domestic oil refining capacity by constructing new refineries to export petroleum products rather than crude oil alone. He also referenced the option of transportation by tanker trucks, noting that the availability of 20,000 tankers could theoretically transport more than three million barrels per day.
However, he stressed that using trucks to transport such volumes is economically impractical compared with pipelines or maritime shipping. According to studies, transporting three million barrels of crude oil per day by truck would require a convoy stretching approximately 500 kilometers, making the option largely unfeasible.
He added that the operational capacity of road transport would likely not exceed 10 percent, even toward destinations such as Aqaba in Jordan.
IEA Calls For An Emergency Meeting On Strategic Reserves
Today, 18:08 INA–Follow up AFP reported on Tuesday that the International Energy Agency (IEA) has called for an emergency meeting regarding strategic reserves.
"The IEA has called for an emergency meeting regarding strategic reserves," according to the agency.
https://ina.iq/en/economy/46409-iea-calls-for-an-emergency-meeting-on-strategic-reserves.html