Iraq Economic News and Points To Ponder Wednesday Afternoon 8-19-26
Oil Rises For Fourth Day On Hormuz Concerns
2026-08-19 Shafaq News Oil prices climbed for a fourth straight day on Wednesday as investors weighed conflicting messages from Tehran and Washington on whether the Strait of Hormuz is open to ships.
Brent crude futures climbed 69 cents, or 0.8%, to $91.71 by 0415 GMT, while U.S. West Texas Intermediate crude futures were up 76 cents, or 0.9%, to $85.70 a barrel.
Both contracts closed on Tuesday at their highest in more than three weeks as hopes of peace between the U.S. and Iran faded.
U.S. President Donald Trump said on Tuesday no talks were taking place with Iran and insisted the Strait of Hormuz was open, contradicting Iran's assertion that the critical waterway remained shut to shipping.
A temporary ceasefire agreement expired on Monday and a senior Iranian official told Reuters that his country was moving to due to the diplomatic stalemate, though there were no reports of fresh strikes by either side on Tuesday.
"The shipping risks are increasing again as attacks from Iran and Houthis remain prevalent in both key chokepoints, keeping oil prices supported in the near term," said June Goh, senior oil market analyst at Sparta Commodities, referring to the Strait of Hormuz and Bab el-Mandeb strait.
Shipping through Hormuz slowed, data showed on Wednesday, as most shipowners avoided the key waterway due to a lack of clear signalling on its reopening from a blockade.
"However, Gulf producers are finding alternative export routes to bring oil out to the Gulf of Oman," said Goh. "If sustainable, this could help increase shut-in production from these two producers."
To avoid the Strait of Hormuz, Iraq's cabinet approved mechanisms for exporting Iraqi crude through specialized international and local companies and via multiple export outlets, the government said on Tuesday.
The contracts under the new mechanism will run for three months starting September 1, according to a statement issued after the cabinet meeting.
Two Chinese shipping giants have stopped sending oil tankers through Hormuz and Bab el-Mandeb amid the conflict in the Middle East and are instead collecting oil cargoes outside the Gulf.
In the U.S., crude oil and distillate inventories fell, while gasoline stocks rose last week, market sources said, citing data from the American Petroleum Institute.
Official inventory numbers from the U.S. Energy Information Administration are due at 10:30 a.m. ET (1430 GMT), with analysts polled by Reuters expecting crude stocks fell by about 600,000 barrels in the week ended August 14. (REUTERS)
https://www.shafaq.com/en/Economy/Oil-rises-for-fourth-day-on-Hormuz-concerns
Basrah Crude Grades Gain Over Five Percent
2026-08-19 Shafaq News- Baghdad Iraq's two Basrah export grades climbed more than five percent on Wednesday, outpacing modest gains in global benchmarks.
Basrah Heavy settled at $65.04 a barrel, up $3.27 or 5.29 percent, while Basrah Medium rose to $68.34 a barrel, a gain of $3.27 or 5.03 percent.
The moves ran well ahead of the day's benchmarks. Brent crude edged up 0.69 percent to $91.65 a barrel, and West Texas Intermediate rose 0.79 percent to $85.59.
Arab Light gained 4.53 percent to $85.09 a barrel. The OPEC reference basket bucked the trend, slipping 0.50 percent to $85.43. https://www.shafaq.com/en/Economy/Basrah-crude-grades-gain-over-five-percent
Chevron Moves Ahead On Southern Iraq Oil Deals, Exits KRI
2026-08-19 Shafaq News- Baghdad Chevron is pressing forward on two of southern Iraq's major oil projects and has joined a proposed pipeline that would carry Iraqi crude across Syria to the Mediterranean, the US energy major told Shafaq News, while declining to discuss the strategy behind its shifting presence in the country.
Taken together, the moves amount to a significant shift in Chevron's Iraq footprint from the Kurdistan Region of Iraq (KRI) toward federal Iraq. Chevron withdrew entirely from the KRI in 2025, telling the US Securities and Exchange Commission in its annual filing that it had "completed exit agreements."
The retreat ended a presence dating to 2012 and centered on the Sarta and Qara Dagh blocks; a settlement and relinquishment agreement covering Sarta was signed with the Kurdistan Regional Government and partner Genel Energy in April 2025, according to Genel's financial disclosures.
Sarta had underperformed for years, and the prolonged shutdown of the KRI's export pipeline further weakened its near-term commercial prospects.
Read more: Energy war nears Iraq: Oil infrastructure faces rising threat
The company's attention has turned to the south. On West Qurna (Phase 2), one of the largest oilfields in Iraq's southern Basra province, Chevron said it had built on agreements first signed in February 2026.
Chevron Exploration Services, Inc. and the state-run Basra Oil Company "have signed an agreement which advances commercial negotiations in respect of West Qurna (Phase 2)," the company noted, adding that it "looks forward to sharing its expertise in successfully developing oil and gas projects to support Iraq in further developing its energy resources."
A parallel step came at Nasiriyah, a field in the southern province of Dhi Qar. Chevron Business Development EMEA Ltd. and the Dhi Qar Oil Company (TOC) signed an addendum to a Heads of Agreement dated August 19, 2025, a move Chevron indicated "advances commercial negotiations in respect of the Nasiriyah Field and surrounding Nasiriyah Exploration Area."
Read more: Iraq's rentier economy: Risks and reforms
The company also confirmed its involvement in a proposed cross-border pipeline that could give Iraq a westward export route, providing an alternative to Iraq's Gulf export routes.
The governments of Iraq and Syria have each signed a Heads of Agreement with Urbacon Concessions Investments WLL, TIC Infra II LLC and Chevron Business Development EMEA Ltd. "in connection with a potential cross-border oil pipeline project from Iraq through Syria to the Mediterranean Sea," Chevron said.
On each project, the company drew the same line: "Beyond this, it is not our policy to comment on specific details related to commercial matters."
Chevron did not address questions on the financial and technical shape of its pipeline role, whether it views a Mediterranean route as an alternative to exports through the Strait of Hormuz, or how its growing partnership with the federal government in Baghdad sits alongside its dealings with the KRI.
Read more: SCOOP: Iraq in talks with US-Iran over Hormuz oil shipments
https://www.shafaq.com/en/Economy/Chevron-moves-ahead-on-southern-Iraq-oil-deals-exits-KRI
Iraq’s Federal Revenues Drop 40%+ On Oil Decline
2026-08-19 Shafaq News- Baghdad Iraq’s federal revenues fell 42% year-on-year in June 2026, driven by a sharp decline in oil income, according to budget execution data.
Total revenues dropped to 35.946 trillion dinars ($27.23 billion) from 62.004 trillion dinars ($46.97 billion) in June 2025, a decline of about 26.058 trillion dinars.
Oil revenues nearly halved to 28.506 trillion dinars from 57.053 trillion dinars a year earlier, a decrease of 28.547 trillion dinars. Non-oil revenues, however, rose to 7.440 trillion dinars from 4.951 trillion dinars over the same period.
As a result, oil’s share of total federal revenues fell to 80% from 92%, while the contribution of non-oil revenues increased to 20% from 8%. The dollar figures are based on an exchange rate of 1,320 dinars per dollar.
https://www.shafaq.com/en/Economy/Iraq-s-federal-revenues-drop-40-on-oil-decline
USD/IQD Exchange Rates Dip In Baghdad, Erbil
2026-08-19 Shafaq News- Baghdad/ Erbil The US dollar hovered around 154,000 Iraqi dinars per $100 in Baghdad and Erbil on Wednesday, declining in both markets by the close.
In Baghdad, the dollar fell to 154,250 dinars per $100 at Al-Kifah and Al-Harithiya central exchanges, down from 154,600 in the morning.
Exchange shops in the capital sold the dollar at 154,750 dinars and bought it at 153,750 per $100. In Erbil, the dollar also declined, with exchange shops selling at 154,050 dinars and buying at 154,000 per $100.
https://www.shafaq.com/en/Economy/USD-IQD-exchange-rates-dip-in-Baghdad-Erbil-8-1