Iraq Economic News and Points To Ponder Thursday Evening 3-5-26
Foreign Minister: Iraq Is Committed To Protecting Diplomatic Missions And Not Allowing Its Territory To Be Used For Hostile Acts
Thursday, March 5, 2026 Baghdad – One News 3/05/2026 During his meeting with US Chargé d'Affaires Joshua Harris in Baghdad, Foreign Minister Fuad Hussein affirmed Iraq's commitment to shielding the country from the repercussions of the war, emphasizing the government's commitment to protecting and ensuring the security of diplomatic missions operating in Iraq.
The minister reiterated that Iraq will not allow its territory to be used as a launching pad for any hostile acts against neighboring countries, stressing his country’s commitment to maintaining the security and stability of the region.
https://1news-iq.net/وزير-الخارجية-العراق-ملتزم-بحماية-الب/
Iraq's Central Bank: Foreign Currency Reserves At $97.4 Billion At End Of 2025
2026-03-05 Shafaq News- Baghdad Iraq’s foreign currency reserves fell to $97.433 billion by the end of 2025, down from $100.367 billion a year earlier, according to official statistics released by the Central Bank of Iraq.
The bank said the reserves were equivalent to about 126.661 trillion Iraqi dinars at the end of last year, compared with 130.347 trillion dinars recorded in 2024.
The data also showed that reserves in 2024 had already declined compared with 2023, when they reached $111.736 billion, equivalent to 145.257 trillion dinars.
According to the central bank’s figures, gold holdings accounted for 31.488 trillion dinars of the total reserves, while external investments amounted to 93.266 trillion dinars.
Cash holdings in the Central Bank of Iraq’s vaults were valued at about 1.907 trillion dinars.
Reduced Gas Supplies Leave 6-6.5gw Generation Gap
5th March 2026 in Iraq Industry & Trade News By John Lee. The Ministry of Electricity has confirmed that imported gas supplies from Iran are continuing at a reduced level of six million cubic metres per day (6mcm/d).
Official spokesperson Ahmed Mousa Al-Abadi said the current volumes remain below contracted levels and continue to affect generation units and power stations. He noted that milder temperatures have helped contain demand and maintain relative grid stability.
According to the ministry, the available gas is being directed to key generating units at major load-centre stations, including Basmaya [Bismaya] and Al-Mansouriya. However, reduced flows continue to constrain electricity production.
The ministry estimates that the power system is currently short of approximately 6,000 to 6,500MW of capacity, across both simple and combined-cycle operations, due to limited gas supplies.
It added that coordination is ongoing with the Gas Company to explore the possibility of increasing imported volumes, particularly ahead of the summer peak demand period. The ministry also said that cooperation between the electricity and oil sectors has helped provide alternative fuel to affected generating units.
(Source: Ministry of Electricity)
https://www.iraq-businessnews.com/2026/03/05/reduced-gas-supplies-leave-6-6-5gw-generation-gap/
Iraq Leaders Reaffirm Ban On Attacks From Iraqi Territory
2026-03-05 Shafaq News- Baghdad Iraq’s four presidencies reiterated on Thursday their longstanding rejection of using the country’s territory as a launchpad for attacks against neighboring states, according to an official statement.
During a meeting at Baghdad Palace, President Abdullatif Rashid, caretaker Prime Minister Mohammed Shia Al-Sudani, Parliament Speaker Haibet Al-Halbousi, and Supreme Judicial Council President Judge Faiq Zaidan stressed the need to prevent Iraq from being drawn into external conflicts, voicing support for government measures aimed at maintaining security and stability, protecting diplomatic missions, and safeguarding national sovereignty.
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Presidents hold a meeting in Baghdad Palace to research developments in the region and their serious consequences
The Presidencies held a meeting in Baghdad Palace, today Thursday, March 5, 2026, in the presence of the President of the Republic, Dr. Abdul Latif Jamal Rashid, the Prime Minister of the Cabinet, Mr. Mohammed Shia Al-Sudani, the President of the House of Representatives, Mr. Hibet Al-Halbousy, and the President of the Supreme Court, Justice Faiq Zidane.
The meeting witnessed an in-depth review of the latest security and political updates on the regional and international spheres, and their direct reflections on the internal situation in Iraq, the community also discussed the mechanisms the government is using to prevent the country from being drawn to external conflicts, emphasizing the support of the government's actions in imposing security, stability and protecting the sovereignty of the country, and the commitment to protecting the security of diplomatic missions.
Stressing on the necessity of maintaining Iraq's central and balanced role in promoting security and stability in the region.
The presidents have renewed Iraq's firm position by refusing to use its territories to attack neighboring countries or threaten their security, as well as rejecting the assaults that span cities, governorates of Iraq and Kurdistan Region, which are a violation of national sovereignty.
The meeting emphasized the necessity of an immediate halt of military operations in the region and respect for the sovereignty and independence of countries, calling for the international community to move urgently for Hiloula without widening the conflict patch. The meeting also stressed that the approach to the negotiation and diplomatic solutions is the best way to avoid the region the consequences of serious conflict on both regional and international levels.
On the domestic level, communities are studying the importance of accelerating the completion of constitutional rights, strengthening national unity to face the current circumstances, as well as supporting government efforts to consolidate security, stability, improving the living and service conditions of citizens, and moving forward on the path of reform and sustainable development.
At the end of the meeting, the attendees stressed the need to support the strategic security measures to simplify security and order, and to hold the rumor promoters accountable through social media platforms for what constitutes a direct threat to the family ladder and internal security, according to legal and judicial procedures.
They also condemned attacks targeting Iraqi cities and provinces, including the Kurdistan Region, describing them as violations of Iraq’s sovereignty.
While calling for an immediate halt to military operations across the region and urging the international community to act swiftly to prevent further escalation, the leaders stressed that negotiations and diplomatic solutions remain the most effective path to spare the region the dangerous consequences of widening conflict.
The statement comes as regional tensions intensify following joint US–Israeli strikes on sites inside Iran on February 28, which prompted Tehran to launch retaliatory missile and drone attacks against Israel and US military bases across the region.
In Iraq, factions aligned with Tehran have stepped up activity under the banner of the Islamic Resistance in Iraq, claiming rocket and drone attacks against what they describe as “enemy bases” in Iraq and neighboring areas. Al-Sudani had affirmed that Baghdad will not permit any threats to arise from its territory against Tehran.
Read more: Post-Khamenei Iraq: Factional pressure Vs. state sovereignty
https://www.shafaq.com/en/Iraq/Iraq-leaders-reaffirm-ban-on-attacks-from-Iraqi-territory
Iraqi factions: Europe’s forces legitimate targets if they back US-Israel strikes on Iran
2026-03-05 / 03:40 Shafaq News- Baghdad The Islamic Resistance in Iraq, an umbrella for Iran-aligned armed factions, has warned that European countries supporting US and Israeli military operations against Iran could see their forces and interests in Iraq and across the region targeted.
In a statement on Thursday, the group described the United States and Israel as “mobilizing allies” against “the free people of the Islamic Republic and the region.” It warned that any European country participating in the military campaign “will be considered an enemy of our peoples and sanctities.”
The warning comes as fighting between the United States and Israel on one side and Iran on the other has intensified since Feb. 28, when joint strikes targeted sites inside Iran, prompting Tehran to launch retaliatory missile and drone strikes on Israel and US military bases in Bahrain, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
In Iraq, factions aligned with Tehran have stepped up activity under the banner of the Islamic Resistance in Iraq, claiming rocket and drone attacks against what they describe as “enemy bases” in Iraq and neighboring areas.
Several European countries have also taken steps tied to the conflict. The United Kingdom allowed the United States to use its military bases for what Prime Minister Keir Starmer described as “defensive strikes,” and deployed helicopters with anti-drone systems and a warship toward Cyprus after a drone struck a British base there earlier this week.
France reinforced its presence on the island with a frigate and additional air defense assets, according to President Emmanuel Macron. Spain, however, rejected the US strikes, prompting US President Donald Trump to threaten a full American embargo on Madrid in response to the socialist government’s position.
Read more: Post-Khamenei Iraq: Factional pressure Vs. state sovereignty
Iraq Braces For Escalation Amid Fears Of Fallout From Iran-Israel-US War
Iraq Braces For Escalation Amid Fears Of Fallout From Iran-Israel-US War
Iraq/Security The story: The continued region-wide confrontation has put Iraq on a knife’s edge, driving fears that the country could be dragged further into the Iran-Israel-US war. Protests against the Israeli-US attack on Iran have continued for a second day, as have airstrikes targeting Iraqi armed groups close to Tehran. A protracted conflict could threaten to collapse Iraq’s oil-dependent economy, raising concerns that the worst might be to come.
The coverage: Iran’s confirmation of Khamenei’s death in a Feb. 28 Israeli airstrike in Tehran has been received with a mixture of anger and mourning across the Iraqi political spectrum.
Iraq’s Popular Mobilization Units (PMU) issued a statement mourning Iran’s slain supreme leader, saying that Khamenei had “ascended to the highest abode following a treacherous Zionist-American aggression.”
The office of Najaf-based Grand Ayatollah Ali Al‑Sistani circulated a message urging Iranians to preserve national unity and deny their “enemies” the fruits of Khamenei’s assassination.
Iraqi President Abdul Latif Rashid, Kurdistan Region President Nechirvan Barzani and caretaker Prime Minister Muhammad Shia’ Al‑Sudani each offered condolences while calling for de‑escalation and endorsing an official three‑day mourning period.
A military spokesperson for Sudani, who is also Iraq’s commander-in-chief, stated that the caretaker premier “condemned the unjustified aggression against the Islamic Republic.”
Supporters of Iran-allied armed groups have renewed demonstrations near Baghdad’s Green Zone, where the US embassy compound is located.
Videos of the protests showed chaotic scenes, with reports of live ammunition, stun grenades and tear gas being fired by security services. Seemingly more peaceful demonstrations were also seen in the shrine city of Najaf.
Iraqi parliamentary sources have reported that the legislature’s scheduled session for Mar. 1 had been cancelled partly due to the unrest.
An apparent strike on a PMU convoy near the Iranian border in Diyala Governorate reportedly killed several fighters affiliated with Shiite armed group Asa’ib Ahl Al-Haq. It was unclear whether the attack was carried out by Israeli or US forces.
The targeted killing is speculated to be geared to send the message that the movements of Iran’s allies are being closely watched.
The PMU “temporarily” evacuated civilian staff from bases in Nineveh Governorate in response to two apparent Israeli-US drone attacks earlier on Mar. 1. However, Iraqi outlet Shafaq News reported that troops have maintained “tight security” at their posts.
Later on Mar. 1, reports emerged that Kata’ib Hezbollah fighters had been targeted at the group’s Jurf Al-Sakhar base—the same site of another strike the previous day. A second site at the Al-Qaim border crossing with Syria was also reportedly hit. No group or government has claimed responsibility for the attacks.
Senior Kurdistan Region Government (KRG) officials appear to have remained notably taciturn on the Iran-Israel-US conflict so far despite ongoing strikes in the semi-autonomous region.
One site housing US troops stationed in Erbil has come under sustained Iranian missile and drone barrages that seemed to intensify into the night on Mar. 1.
A statement issued by the Iran-backed armed group Saraya Awliya Al-Dam has taken responsibility for a purported ballistic missile strike on Erbil.
The claimed strike suggests that lower-profile members of the Shiite alliance of armed groups known as the “Islamic Resistance of Iraq” may be entering the fray.
The development also indicates that what previously was an external conflict dragging in Iraqi actors now seems to involve Iraqi parties striking perceived domestic rivals.
Amid the widespread coverage of the material impact of the conflict on Iraq, other reports stressed Iraq’s profound economic vulnerability.
Analysts warn that any prolonged closure of the Strait of Hormuz by Iranian forces could slash Iraq’s oil revenues, which fund more than 90% of the federal budget.
The context/analysis: The recent regional escalation, part of a broader Israeli-US campaign to degrade the Islamic Republic, has again turned into a target and corridor for conflict.
As in previous flare-ups, top Iraqi authorities have insisted that the country remains officially neutral, and must not become a staging ground for regional disputes.
Iraqi officials have condemned the Israeli-US strikes on Iran and on PMU sites as “unjustified” violations of Iraq’s sovereignty while warning against the use of Iraqi airspace to attack Iran.
Protests outside Baghdad’s Green Zone show how Iran-allied groups can quickly channel grief into street pressure on Iraq’s government.
Drone attacks and falling debris across Erbil, Kirkuk and Nineveh highlight Iraq’s fragmented security map—where PMU brigades, Kurdish forces and the Iraqi Army overlap.
All this appears to put the PMU in a difficult position. Evacuation orders such as those in Nineveh while retaining armed guards point to an attempt to reduce exposure without ceding influence in sensitive minority areas.
Among Iraq’s political elite, fears of military escalation are likely matched by concern over the economic ramifications of a prolonged conflict.
Lasting instability in neighboring Iran, one of Iraq’s largest trading partners, would have a profound effect on Iraq’s economy. This could demand a radical reshaping of Iraqi markets.
For actors critical of Iran’s influence in its western neighbor—and the significant economic power of Tehran’s allied Iraqi armed groups—such a shift likely cannot come soon enough.
The future: Further regional instability and a possible prolonged disruption to transit through the Strait of Hormuz and the Red Sea could prove decisive tests for both Sudani’s caretaker government and Iraq’s struggling rentier economy.
Economic specialists calculate that a full closure to tanker traffic in the Red Sea could wipe out more than 90% of Iraq’s monthly oil income. This could cut Baghdad’s hydrocarbon receipts from roughly 7B USD dollars to less than 1B USD.
Officials at Iraq’s Ministry of Oil have reportedly convened an “emergency” meeting aimed at developing plans for alternate export routes.
Such contingency planning will likely involve pipelines and storage projects, but these remain years from fully compensating for Gulf terminals.
On the political stage, calls for de‑escalation and unity indicate elite desire to steer Iran-allied armed factions and their supporters on the Iraqi street away from a wider confrontation.