Iraq Economic News And Points To Ponder Wednesday Morning 3-25-26

Disappointing Results For A $69 Billion US Bond Offering

Money and Business   Economy News - Follow-up

The U.S. Treasury Department announced Tuesday the results of its $69 billion two-year bond offering, with demand falling below average, at the start of a week of long-term U.S. Treasury bond sales.

The yield on the two-year bonds was 3.936% of their nominal value, with a coverage ratio of 2.44 times.

Last month, the Treasury sold $69 billion in two-year bonds, with a yield of 3.455% and a coverage ratio of 2.63 times the offering value.

 It is worth noting that the coverage ratio is a measure of demand for bonds, indicating the size of the subscription compared to the size of the offering.

The average coverage ratio for the last 10 two-year bond offerings was 2.62 times.

The Treasury Department is scheduled to announce on Wednesday the results of its $70 billion five-year bond offering and on Thursday the results of its $44 billion seven-year bond offering at the close of the offering week.

https://www.economy-news.net/content.php?id=67107

Sudan’s Parliamentary Bloc: We Pledge To Our People That Iraqi Sovereignty Will Remain An Untouchable Trust

Iraqi state spending   Economy News – Baghdad   The parliamentary Reconstruction and Development Bloc pledged on Wednesday that Iraqi sovereignty will remain an inviolable trust, and that any transgression against it will not go unanswered without a firm national stance that preserves the country's dignity and the military institution's prestige.

A statement issued by the bloc and received by “Al-Eqtisad News” said: “It condemns the heinous American air attack that targeted the Habbaniyah military clinic this morning, Wednesday, which represents a fully-fledged crime, reflecting a determination to violate Iraqi sovereignty and a blatant challenge to the norms and conventions that govern international relations.”

He added: “It has become clear that the series of attacks targeting our official institutions aims to weaken the state’s ability to extend its control and protect its members. The blood that was shed today in Habbaniyah is the same blood that is being shed in the trenches defending the homeland by the army, the Popular Mobilization Forces, and the police, which necessitates a comprehensive national stance that transcends narrow calculations.”

He continued: “We call for the immediate initiation of internationally available legal avenues and the use of diplomatic leverage to enforce respect for Iraqi sovereignty. We affirm that the unity of the official and popular stance behind the sovereign government decision is the only guarantee to prevent the recurrence of these violations and to preserve the dignity of the military institution in all its formations.”

He added: “While we mourn the martyrs and pray to God for the speedy recovery of the wounded, we pledge to our people that Iraqi sovereignty will remain an inviolable trust, and that any transgression against it will not go unanswered without a firm national stance that preserves the country’s dignity and the military institution’s prestige.”

https://www.economy-news.net/content.php?id=67121

American Company: Closing The Strait Of Hormuz Threatens Iraq's Food Security

Localities   Economy News – Baghdad   A US company specializing in economic and financial data and market analysis warned on Wednesday of the impact of the turmoil in the Strait of Hormuz and the war in the Middle East on Iraq's food security, noting that Baghdad imports about 70% of its needs for vegetables and fruits.

S&P Global said that Iraq relies on imports for 70% of its fruit and vegetable needs to cover the local market, while Qatar and the UAE need 90% of their fruits and vegetables imported, and Bahrain's reliance on imports is 85% of its fruits and vegetables.

The report indicated that "Kuwait needs to import 95% of its flour, Oman needs to import 75% of its fruits and vegetables, Saudi Arabia needs to import about 85% of its poultry feed and grains, while Iran relies on importing 25% of its wheat."

He explained that “prolonged restrictions in the Strait of Hormuz may force importers to resort to longer sea routes or alternative land routes, leading to higher costs and exacerbating logistical challenges, and directly affecting food prices in Iraqi markets.”

The report added that "the continuation of these disruptions could exacerbate the food security crisis locally and regionally, which calls for finding quick solutions to secure supplies and protect consumers."

The Iranian Foreign Ministry had confirmed earlier this week that the Strait of Hormuz was "not closed" and that the hesitation of ships was due to insurance companies' fears of war, while announcing that navigation would continue while ships linked to "aggressor parties" were barred.  https://www.economy-news.net/content.php?id=67118

Oil Slides 4% On US-Iran Ceasefire Hopes

2026-03-25 Shafaq News  Oil prices fell around 4% on Wednesday on the prospect of a possible ceasefire easing supply disruptions from the key Middle East ‌producing region after reports the U.S. sent Iran a 15-point plan to end the war between them.

Brent crude futures fell $4.89, or 4.7%, to $99.60 a barrel by 0335 GMT, after declining to as low as $97.57. U.S. West Texas Intermediate (WTI) crude futures were down $3.54, or 3.8%, at $88.81 a barrel, after falling to as low as $86.72.

Both benchmarks rose nearly 5% on Tuesday, before paring gains in volatile post-settlement trading.

"Expectations of a ceasefire have risen slightly and profit-taking is leading the market," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of ⁠Nissan Securities. "But the outlook remains uncertain as to whether negotiations will succeed, limiting selling."

U.S. President Donald Trump said on Tuesday the U.S. was making progress in negotiating an end to the war with Iran, while a source confirmed that Washington had sent Iran a 15-point settlement proposal.

Israel's Channel 2 said the U.S. was seeking a month-long ceasefire to discuss the plan, which includes the dismantling of Iran's nuclear program, ceasing support for proxy groups, and the reopening of the Strait of Hormuz.

Some analysts are sceptical on the progress of such talks, expecting markets to remain volatile.

Phillip Nova's senior market analyst Priyanka Sachdeva said Middle East developments would remain the "dominant price driver" keeping oil prices moving in a wide range in the near term.

The war has all but halted shipments of oil and liquefied natural gas through the Strait, which typically carries about one-fifth of the world's gas ‌and crude ⁠supply, causing what the International Energy Agency has called the biggest-ever oil supply disruption.

"The market outlook remains tight notwithstanding the prospects of a war off-ramp," said Saul Kavonic, head of energy research at MST Marquee.

"Even if a ceasefire is implemented this week and flows through Strait of Hormuz resume, it's not clear all shut-in production will resume until there is more clarity on the durability of a ceasefire."

On Tuesday, Pakistan's prime minister said he was willing to host talks between ⁠the U.S. and Iran.

Iran has told the United Nations Security Council and the International Maritime Organization that "non-hostile vessels" may transit the Strait of Hormuz if they coordinate with Iranian authorities, according to a note seen by Reuters on Tuesday.

Still, U.S., Israeli and Iranian strikes continued and sources said Washington was preparing to send ⁠more troops to the region.

To offset the Strait of Hormuz disruptions, oil exports from Saudi Arabia's Red Sea Yanbu port rose to nearly 4 million barrels per day last week, a sharp increase from before the war broke out, shipping data shows.

In the U.S., crude, gasoline and distillate stocks rose ⁠last week, according to market sources who cited American Petroleum Institute figures on Tuesday.

Crude stocks rose by 2.35 million barrels in the week ended March 20, gasoline inventories rose by 528,000 barrels and distillate inventories rose by 1.39 million barrels from a week earlier, the sources said.

(Reuters)   https://www.shafaq.com/en/Economy/Oil-slides-4-on-US-Iran-ceasefire-hopes

The Closure Of Iraqi Airspace Has Been Extended For (72) Hours.

{Local: Al-Furat News} The Iraqi Civil Aviation Authority announced today, Wednesday, the extension of the closure of Iraqi airspace to air traffic.

The authority stated in a statement received by Al-Furat News that "it has been decided to extend the closure of Iraqi airspace to all incoming, departing and transiting aircraft for (72) hours, starting from 12:00 noon on Wednesday (09:00 UTC), until 12:00 noon on Saturday, March 28, 2026, as a temporary precautionary measure.

She added that "the decision is based on the ongoing assessment of the security situation and developments in the regional situation, and will be reassessed in light of new developments."    She noted that "airlines and relevant parties will be notified of any updates later." LINK