Iraq Economic News and Points To Ponder Tuesday Afternoon 5-19-26
Iraq’s new government faces constitutional challenge over confidence vote
2026-05-19 Shafaq News- Erbil/ Baghdad Iraq’s newly approved government is facing a constitutional challenge after nominees from the Kurdistan Democratic Party (KDP) and the State of Law Coalition (SLC) filed complaints contesting last week’s parliamentary confidence session, KDP parliamentary bloc head Shakhawan Abdullah said on Tuesday.
Speaking to reporters in Erbil, Abdullah clarified that the complaints concern the mechanism through which parliament rejected several ministerial nominees, adding that documents and recordings showed “procedural violations” during the voting process. The objections argue that the session violated Article 76 of Iraq’s constitution and breached parliament’s internal bylaws due to what Abdullah called a failure to manage proceedings “with complete neutrality.”
“The final decision now rests with the Federal Supreme Court, and we are waiting for its ruling.”
Iraq’s parliament voted on May 14 to approve Prime Minister Ali Al-Zaidi’s government program and 14 cabinet ministers, while delaying a vote on the remaining nine portfolios until after the Islamic holiday Eid Al-Adha amid continuing disputes over cabinet allocations.
Earlier negotiations over ministerial nominations and portfolio distribution saw blocs, including SLC, accuse rivals of obstructing nominees, while factions aligned with former Prime Minister Mohammed Shia Al-Sudani criticized “unfair” cabinet allocations.
Read more: Ali Al-Zaidi sworn in as Iraq's prime minister with a program already failed
USD/IQD slips at close in Baghdad and Erbil
2026-05-19 Shafaq News- Baghdad/ Erbil The US dollar closed Tuesday’s trading lower 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 153,650 dinars per 100 dollars, down from the morning session’s 153,850 dinars.
In the Iraqi capital, exchange shops sold the dollar at 154,000 dinars and bought it at 153,000 dinars, while in Erbil, selling prices stood at 153,450 dinars and buying prices at 153,350 dinars.
https://www.shafaq.com/en/Economy/USD-IQD-slips-at-close-in-Baghdad-and-Erbil
Monte Carlo: A Saudi Message Reached The Iraqi Foreign Ministry Containing A Threat To Sever Diplomatic Relations Between The Two Countries
latest news Tuesday, May 19, 2026 Baghdad – One News Monte Carlo International reported that in the first serious challenge to the new Iraqi Prime Minister Ali al-Zaidi, Iranian-backed factions threatened to attack Saudi Arabia if it launched raids inside Iraqi territory.
She indicated that a Saudi message had reached the Iraqi Foreign Ministry that included a threat to sever diplomatic relations between the two countries, in response to what the Saudi message described as terrorist attacks coming from Iraq targeting Saudi infrastructure.
She added that, as an indication of the impact of the political tension between Baghdad and Riyadh, Saudi Crown Prince Mohammed bin Salman made a phone call to the new Iraqi Prime Minister, merely offering congratulations, but al-Zaidi sent assurances to the Saudi authorities that he would not allow attacks against Saudi Arabia to be launched from Iraqi territory. https://1news-iq.net/مونت-كارلو-رسالة-سعودية-وصلت-للخارجية/
Iraqi Basrah Crude Outperforms Global Market With 2.6% Gain
2026-05-19 / Shafaq News- Basrah Iraq’s Basrah crude rose more than 2.6% on Tuesday, bucking declines in global oil markets driven by volatility linked to geopolitical tensions and shifting energy demand expectations.
Basrah Medium crude rose to $111.10 per barrel, up 2.61%, while Basrah Heavy crude climbed to $109.00 per barrel, gaining 2.67%.
Brent crude futures fell $2.21, or 1.97%, to $109.89 per barrel, while US West Texas Intermediate declined $1.30, or 1.20%, to $107.36.
Among other Arab benchmarks, Saudi Arabia’s Arab Light crude rose 2.49% to $119.10 per barrel, while Kuwait Export crude reached $124.63 per barrel. https://shafaq.com/en/Economy/Iraqi-Basrah-crude-outperforms-global-market-with-2-6-gain
A Leader In The Coordination Committee: Leaders Of Political Blocs Are Aware Of The Importance Of Dealing Flexibly With Washington's Pressure To Avoid Sanctions
latest news Tuesday, May 19, 2026 Baghdad – One News A leader in the "Coordination Framework" said that "the leaders of the Shiite political forces are aware of the importance of dealing flexibly with American pressures in order to spare Iraq the risks of economic and financial sanctions."
He explained that Iraq would not be able to withstand the American sanctions, so the steps taken by the Al-Zaidi government regarding the issue of factions and restricting weapons to the state must be supported.
He added that Al-Zaidi pledged in his first speech after his government was granted confidence to reform the security system by restricting weapons to the state, enhancing the capabilities of the security forces, and consolidating the citizen’s confidence in democracy. https://1news-iq.net/قيادي-بالتنسيقي-قادة-الكتل-السياسية-م/
Middle East Forum: Al-Zaidi Succeeded In Postponing The Confrontation With The Factions, But He Has Not Proven That He Fulfilled His Promises To Washington
Baghdad – One News 5/19/2026 The Middle East Forum reported that many Iraqis were expecting a change in US President Donald Trump’s policy towards pro-Iranian factions, given the escalating US pressure on Baghdad in recent times.
The forum pointed out that placing the Popular Mobilization Forces at the heart of the government program reflects the continued Iranian influence within Iraqi state institutions, despite talk of reforms and restructuring the security file.
He added that Prime Minister Ali al-Zaidi has so far succeeded in postponing the confrontation with the armed factions, but he has not yet proven his ability to implement the pledges he reportedly made to Washington regarding reducing the influence of armed groups and resetting the security file.
The forum also believed that the US administration was required to demonstrate real leverage to force Baghdad to fulfill its promises, if it wanted to bring about a real change in the balance of power within Iraq.
https://1news-iq.net/منتدى-الشرق-الأوسط-الزيدي-نجح-في-تأجيل/
Baghdad: Institutions Ready To Cooperate Over Saudi Drone Incident
2026-05-19 Shafaq News- Baghdad The Iraqi government condemned on Tuesday drone attacks targeting Saudi Arabia, while affirming that Iraqi military authorities had found no evidence that Iraqi airspace was used in the alleged operation last week.
Spokesperson Bassem Al-Awadi stated that Iraq remains committed to supporting efforts aimed at reducing tensions and preventing such incidents regardless of their source, adding that Iraqi institutions are prepared to cooperate and verify relevant details.
On May 18, Iraq’s Foreign Ministry announced an investigation into how the aircraft crossed Iraqi territory undetected after Saudi Arabia said it had intercepted and destroyed three drones that entered the Kingdom’s airspace.
Saudi Arabia also summoned Iraq’s ambassador on April 12 to protest attacks allegedly launched from Iraqi territory.
Since the start of the US-Israeli war on Iran, several Iraqi armed factions have claimed responsibility for drone and missile attacks targeting sites inside and outside Iraq, including military facilities and strategic locations linked to US and Israeli interests. https://www.shafaq.com/en/Iraq/Baghdad-Institutions-ready-to-cooperate-over-Saudi-drone-incident
Tehran Warns It Is Ready To Confront Any US Strike
2026-05-19 Shafaq News- Tehran Tehran is “fully prepared” to confront any US military attack, after President Donald Trump temporarily delayed a planned strike on Iran, a senior Iranian official said on Tuesday.
Deputy Foreign Minister Kazem Gharibabadi said that the US was simultaneously speaking about diplomacy while threatening military action at any moment, arguing that Washington was presenting threats as “an opportunity for peace.”
On May 18, Trump announced the postponement of a strike on Iran following requests from the leaders of Qatar, Saudi Arabia, and the UAE, adding that “serious negotiations” were underway with Tehran. However, he instructed the US military “to be prepared to go forward with a full, large-scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached.”
Meanwhile, Israel’s Channel 12 reported that Israeli assessments indicate Trump has decided to attack Iran and that implementation is “only a matter of time.” https://www.shafaq.com/en/Middle-East/Tehran-warns-it-is-ready-to-confront-any-US-strike