Iraq Economic News and Points To Ponder Wednesday Morning 7-22-26

Oil Prices Climb To Five-Week High On US-Iran Conflict

2026-07-22 01:18    Shafaq News   Oil prices extended gains on Wednesday as fears of further supply disruptions intensified after U.S. forces struck Iranian military targets for the 11th straight night, while oil tankers made U-turns in the Red Sea after warnings by Iran-backed Houthi militia.

Brent crude futures rose $1, or 1.1%, to $92.01 a barrel at 0330 GMT. U.S. West Texas Intermediate crude climbed 82 cents, or 1.0%, to $85.16.

The gains came after oil settled at a five-week high on Tuesday in the wake of U.S. forces striking targets in southern and western Iran, while Iran attacked U.S. facilities in Bahrain, Kuwait and Jordan.

The U.S. military said it began its latest strikes on Iran late on Tuesday in the United States, or ⁠early Wednesday in Iran. The U.S. attacks came a short while after the Kuwaiti army said its air defences were intercepting Iranian drones on Wednesday.

The constant trading of strikes have raised fears of further disruptions to global energy supplies after Yemen's Iran-aligned Houthis opened a new front in the Iran war by threatening to target vessels carrying Saudi oil in the Bab el-Mandeb Strait and announcing a naval blockade of Saudi Arabia.

The Bab el-Mandeb waterway at the southern entrance to the Red Sea has become an increasingly important route for Saudi crude exports as traffic through the Strait of Hormuz has fallen sharply since a ceasefire between the United States and Iran ⁠collapsed earlier this month.

Three oil tankers loaded with Saudi crude for China and India made U-turns in the Red Sea on Tuesday, heading towards the Suez Canal rather than braving the Yemeni coast following a warning from Yemen's Iran-aligned Houthi militia.

"This would force tankers to enter and exit the Red Sea via the Suez Canal, adding significant time and expense to ⁠voyages to Asia," said ING commodity strategists on Wednesday, adding that tensions in the Black Sea also added to supply uncertainty.

The Caspian Pipeline Consortium has stopped receiving oil from Kazakhstan after suspending loadings on Monday due to attacks on oil tankers ⁠at its Black Sea terminal blamed on Ukrainian drones. Ukraine has not commented on the attacks.

"The longer the suspension drags on, the greater the likelihood that Kazakhstan will be forced to curb upstream production," said ING.

Meanwhile, data from the ⁠American Petroleum Institute showed that U.S. crude and distillate inventories rose last week, while gasoline stockpiles fell, market sources said. The inventory data comes ahead of official figures from the U.S. Energy Information Administration on Wednesday.   (Reuters)

https://www.shafaq.com/en/Economy/Oil-prices-climb-to-five-week-high-on-US-Iran-conflict

Basrah Crude Prices Climb With Global Oil Rally

2026-07-22 02:29   Shafaq News- Basrah   Iraq’s Basrah crude prices rose more than 4% on Wednesday, tracking gains in global oil markets after the United States and Iran exchanged strikes, according to oil price data reviewed by Shafaq News.

Basrah Heavy crude increased by $2.54, or 4.63%, to $57.43 per barrel, while Basrah Medium crude climbed 4.44% to $59.73 per barrel.

Global benchmarks also moved higher, with Brent crude gaining $1, or 1.1%, to $92.01 a barrel. US West Texas Intermediate (WTI) rose 82 cents, or 1.0%, to $85.16.

Among Arab OPEC grades, Kuwait Export crude recorded the largest increase, rising by $5.14, or 6.25%, to $87.39 a barrel. Saudi Arabian Light crude advanced by $3, or 4.02%, to $77.61 a barrel, while the UAE’s Das crude rose to $80.94 a barrel.

https://www.shafaq.com/en/Economy/Basrah-crude-prices-climb-with-global-oil-rally-5

Gold Rebounds To Two-Week High On Middle East Friction

2026-07-22 03:32 Shafaq News  Gold rose to a two-week high on Wednesday on technical buying as investors assessed the widening Middle East conflict and awaited the U.S. Federal Reserve meeting next week for clues on the interest rate outlook.

Spot gold climbed 0.9% to $4,112.70 per ounce by 0705 GMT, having hit its highest level since July 7 earlier in the day. U.S. gold futures ⁠for August delivery jumped 1% to $4,116.90.

Escalating tensions in the Middle East have lifted oil prices and stoked inflation concerns, strengthening expectations of interest rate hikes that led gold to its steepest weekly drop since early June last week.

"Buyers have been stepping in seeking a value play after the recent pullback, while hopes for diplomatic progress between the U.S. and Iran are also assisting price moves," said Tim Waterer, chief market analyst at KCM Trade.

U.S. Secretary of State Marco Rubio said on Wednesday that Washington is still ⁠willing to negotiate an end to the Iran crisis but Tehran is not serious about talks.

Three oil tankers carrying Saudi crude to Asia reversed course in the Red Sea on Tuesday after threats from Yemen's Iran-aligned Houthis, raising concerns about energy supply.

The Fed will keep its key ⁠interest rate steady for the rest of 2026, according to a Reuters poll, although a majority of those who answered a separate question about the chance of a hike this year described the ⁠likelihood as "high", a reversal from last month when most saw it as "low".

Higher-for-longer interest rates increase the opportunity cost of holding non-yielding bullion.

Among other metals, spot silver was ⁠up 0.7% at $59.18 per ounce after reaching its highest point since July 10 earlier in the day.

Platinum climbed 1.2% to $1,649.03 and palladium rose 1.5% to $1,300.58.  (Reuters)

https://www.shafaq.com/en/Economy/Gold-rebounds-to-two-week-high-on-Middle-East-friction

Dollar Edges Up In Baghdad And Erbil

2026-07-22 04:25 Shafaq News- Baghdad/ Erbil  The US dollar opened Wednesday’s trading higher in Iraq, hovering around 150,000 dinars per 100 dollars.

According to Shafaq News market survey, the dollar traded in Baghdad’s Al-Kifah and Al-Harithiya exchanges at 150,250 dinars per 100 dollars, up from the previous session’s 149,600 dinars.

In the Iraqi capital, exchange shops sold the dollar at 150,750 dinars and bought it at 149,750 dinars, while in Erbil, selling prices stood at 150,750 dinars and buying prices at 150,650 dinars.

https://www.shafaq.com/en/Economy/Dollar-edges-up-in-Baghdad-and-Erbil-0