Iraq Economic News and Points To Ponder Tuesday Afternoon 6-2-26

Oil Prices Retrench After Mixed US-Iran Diplomatic Signals

2026-06-02 Shafaq News   Oil prices trended lower on Tuesday following the previous session's sharp gains as the market remained cautious about progress in U.S.-Iran peace talks.

U.S. President Donald Trump said on Monday talks with Iran were ongoing, while Tasnim news agency reported earlier that Tehran had suspended indirect negotiations with Washington.

Brent crude futures lost 75 cents, or 0.79%, to $94.23 a barrel at 0434 GMT, while U.S. West Texas Intermediate fell 85 cents, or 0.92%, to $91.31 a barrel.

Both benchmarks rose more than 5% in the previous session, having posted a monthly loss of more than 16% in May on hopes of a peace deal.

"While markets had hoped to move past the uncertainty amid prospects of a ⁠potential deal, nothing appears to have changed for oil as of this morning," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

In an interview with CNBC on Monday, Trump said he did not mind if the talks were over. But shortly after, he issued a social media post saying talks with Iran were continuing and told ABC News that he expected a deal to extend the ceasefire and reopen the Strait of Hormuz “over the next week”.

"The market is currently focused on whether there's any concrete progress or setbacks in U.S.-Iran negotiations, the tone and substance of statements from both sides (particularly Iran's threats regarding the Strait of Hormuz), and actual physical tanker movements through the waterway," said Tim Waterer, chief market analyst at KCM Trade.

The status of the U.S.-Iran negotiations at ⁠any given point will ultimately determine whether the current risk premium stays embedded in oil prices or starts to unwind, Waterer added.

Lebanon on Monday announced a partial ceasefire between Hezbollah and Israel, in what would amount to a limited de-escalation of a conflict that has inflamed the broader war with Iran.

Iran has effectively halted nearly all non-Iranian shipping into and out of the Gulf since the war began, choking off about ⁠a fifth of global oil and liquefied natural gas flows and driving prices up by 50% or more.

U.S. crude exports climbed to a record 5.6 million barrels per day in May as the Middle East crisis pushed up demand for the country's oil from Asian and European ⁠refiners, ship tracking estimates showed on Monday.

According to a preliminary Reuters poll released on Monday, U.S. crude stockpiles are expected to have fallen by about 3.6 million barrels in the week ended May 29, extending the prior week's draw, while distillates and gasoline ⁠inventories also are likely to have declined.

Shipping executives meeting in Athens on Monday said that any peace deal worked out between the U.S. and Iran would need to offer clear rules allowing vessels to resume normal business via the Strait of Hormuz.

(REUTERS) https://www.shafaq.com/en/Economy/Oil-prices-retrench-after-mixed-US-Iran-diplomatic-signals

Basrah Crudes Surge Despite Global Losses

2026-06-02 Shafaq News- Basrah   Iraq’s Basrah crude rose more than 3.6% on Tuesday, bucking declines in global oil markets driven by volatility linked to geopolitical tensions and shifting energy demand expectations.

Basrah Heavy crude climbed $2.48, or 3.75%, to $68.55 per barrel, while Basrah Medium crude climbed to $70.65 per barrel, gaining 3.64%.

The gains, however, did little to narrow the gap with other OPEC crudes, many of which continued to command substantially higher prices. Saudi Arabia’s Arab Light was priced at $103.62 per barrel, while Arab Super Light reached $104.12. Kuwait’s Export Crude stood at $117.51 per barrel.

Iranian grades also traded well above Iraqi levels, with Iranian Light at $90.04 per barrel and Iranian Heavy at $88.14. The United Arab Emirates’ Murban crude settled at $94.43 per barrel.

Globally, Brent crude fell 75 cents, or 0.79%, to $94.23 per barrel. US West Texas Intermediate (WTI) declined 85 cents, or 0.92%, to $91.31. https://www.shafaq.com/en/Economy/Basrah-crudes-surge-despite-global-losses-0

Dollar Rises In Baghdad, Erbil Markets

2026-06-02 Shafaq News- Baghdad/ Erbil   The US dollar opened Tuesday’s trading higher 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 153,750 dinars per 100 dollars, up from the previous session’s 153,500 dinars.

In the Iraqi capital, exchange shops sold the dollar at 154,250 dinars and bought it at 153,250 dinars, while in Erbil, selling prices stood at 153,750 dinars and buying prices at 153,650 dinars.

https://www.shafaq.com/en/Economy/Dollar-rises-in-Baghdad-Erbil-markets-0-3

Gold Rises In Baghdad And Erbil

 2026-06-02 Shafaq News- Baghdad/ Erbil   Gold prices rose on Tuesday in Baghdad and Erbil, hovering around 990,000 IQD per mithqal, according to a Shafaq News market survey.

At Al-Nahr Street wholesale markets in Baghdad, the selling price for a mithqal of 21-carat Gulf, Turkish, and European gold reached 982,000 dinars, with the buy price at 978,000 dinars, up from a sell price of 972,000 dinars the previous session.

Iraqi 21-carat gold was priced at 952,000 dinars to sell and 948,000 dinars to buy.

At Baghdad jewelry stores, Gulf 21-carat gold ranged between 985,000 and 995,000 dinars per mithqal, while Iraqi 21-carat gold ranged between 955,000 and 965,000 dinars.

In Erbil, 22-carat gold was priced at 1,024,000 dinars per mithqal, 21-carat at 978,000 dinars, and 18-carat at 838,000 dinars.    https://www.shafaq.com/en/Economy/Gold-rises-in-Baghdad-and-Erbil

Dollar Steady In Baghdad, Lower In Erbil 

2026-06-02 Shafaq News- Baghdad/ Erbil   The US dollar closed Tuesday's trading steady in Baghdad and lower in Erbil, 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 153,750 dinars per 100 dollars, unchanged from the morning session.

In the Iraqi capital, exchange shops sold the dollar at 154,250 dinars and bought it at 153,250 dinars, while in Erbil, selling prices stood at 153,650 dinars and buying prices at 153,600 dinars.

https://www.shafaq.com/en/Economy/Dollar-steady-in-Baghdad-lower-in-Erbil-1

UN General Assembly Elects Iraq Vice President

2026-06-02 Shafaq News- Baghdad   Iraq secured the vice presidency of the 81st session of the United Nations General Assembly on Tuesday, the Iraqi Foreign Ministry announced on Tuesday.

Iraq's election reflects the confidence it enjoys within the United Nations and the broader international community, the Foreign Ministry stated, citing the country's role in promoting South-South and trilateral cooperation and facilitating consensus among developing nations on key priorities within the organization.

The ministry indicated that Iraq intends to use the position to contribute to UN efforts aimed at achieving the 2030 Sustainable Development Goals, support initiatives to improve the efficiency of the General Assembly, and strengthen the country's role on the international stage.https://www.shafaq.com/en/Iraq/UN-General-Assembly-elects-Iraq-Vice-President