Iraq Economic News and Points To Ponder Wednesday Afternoon 8-4-26

Is Money Being Printed To Pay Salaries? An Economist Explains The Risks And Warns Of The Consequences.

Baghdad Today - Baghdad    Financial and economic expert Ahmed Abdel Rabbo warned on Wednesday (August 5, 2026) against calls to print currency to secure employee salaries or finance the financial deficit, considering that they lack legal and economic foundations and may lead to serious repercussions on monetary stability and the Iraqi economy.

Abd Rabbo told Baghdad Today that the Central Bank of Iraq Law No. (56) of 2004 regulates the process of issuing currency, explaining that printing currency is a technical procedure aimed at managing the money supply and meeting the needs of the economy, and is not a means of financing government expenditures or covering the financial deficit.

He added that issuing new quantities of currency without real growth in production or an increase in corresponding assets leads to an unjustified rise in cash liquidity, which is reflected in increased inflation rates, a decline in the purchasing power of the dinar, and a decrease in the real value of citizens’ salaries and savings.

He explained that what is known economically as "financing by printing" is one of the most dangerous options in times of financial crisis, because it weakens confidence in the local currency and increases demand for foreign currencies, especially the dollar, which exacerbates pressure on the exchange rate and affects financial stability.

Abdel Rabbo pointed out that there is confusion between the monetary policy tools managed by the central bank and the fiscal policy undertaken by the government, explaining that the use of local debt instruments or discounting treasury bills is different from printing currency to finance current spending, as these instruments are subject to legal and financial controls, while the other option leads to continuous inflationary pressures.

He stressed that addressing the liquidity crisis should rely on sustainable financial and economic reforms, including rationalizing government spending, maximizing non-oil revenues, developing electronic tax and customs collection, recovering looted funds, combating corruption, and expanding the use of domestic debt instruments within controls that maintain monetary stability and protect citizens’ purchasing power.

Discussions in Iraq increase during periods of financial pressure regarding the mechanisms for financing government spending, particularly employee salaries, given the budget's heavy reliance on oil revenues.

Economic experts confirm that addressing the fiscal deficit requires structural reforms and diversifying revenue sources, while the Central Bank of Iraq stresses the importance of maintaining monetary policy stability, the value of the dinar, and reducing inflationary pressures.   https://baghdadtoday.news/304420-.html

The Salary Crisis Tops The Agenda Of The Meeting Between The State Administration And The Three Presidencies.

Information/Special..  Salah Boushi, a member of the State of Law Coalition, stated on Wednesday that the meeting of the State Administration Coalition, in light of the challenges facing Iraq, is of exceptional importance in addressing the economic crisis, specifically the issue of delayed salaries.

Bushi explained to Al-Maalomah News Agency that “the extraordinary meeting of the State Administration Coalition stems from the participation and presence of the three presidencies to discuss many issues, foremost among them the current financial crisis and finding solutions to it,” noting that “solving the financial crisis now requires political and economic decisions to rationalize importance spending, diversify non-oil revenues, and rearrange budget priorities in a way that preserves the rights of citizens.”

He emphasized that "any agreement and understanding between the political forces and the three presidencies will directly impact financial and economic stability and strengthen citizens' confidence in the state's direction," adding that "true success is not measured by the number of meetings, but by the state's ability to translate political consensus into economic decisions that alleviate the burdens on citizens and establish long-term financial stability." (End of 25)

https://almaalomah-me.translate.goog/news/140372/politics/أزمة-الرواتب-تتصدر-جدول-اعمال-اجتماع-إدارة-الدولة-والرئاسات?_x_tr_sl=ar&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc

Parliament Hosts The Minister Of Finance To Discuss The Delay In Paying The Salaries Of More Than One Million Employees.

The Information Agency/Baghdad...  MP Ibtisam Hashim al-Hilali, from the State of Law Coalition, confirmed on Wednesday that the Parliament will host Finance Minister Falih al-Sari next week to discuss the reasons for the delay in paying the salaries of more than one million permanent employees.

Al-Hilali said in a statement received by the Information Agency that “the meeting will address the financial and economic situation in the country, as well as discuss the measures required to reduce expenditures and maximize non-oil revenues,” emphasizing her rejection of any tampering with employee salaries.

She added that "changing the salary payment dates is a violation of the law," noting that Iraqi legislation stipulates a 30-day month for calculating salaries, wages, and allowances in state institutions and the public and mixed sectors.

Al-Hilali indicated that “Parliament will discuss during the session the reasons for the salary delays and their impact on the living, social, and economic conditions of employees.” End/25

https://almaalomah-me.translate.goog/news/140330/politics/البرلمان-يستضيف-وزير-المالية-لبحث-تأخر-صرف-رواتب-أكثر-من-ملي?_x_tr_sl=ar&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc

Deficit Consumes Nearly Half Of Iraq's Projected 200 Trillion IQD 2027 Budget 

Daban Mohammed

At a Glance

• Iraq faces a record 100 trillion IQD budget deficit.
  

• Oil covers only one-quarter of state operational expenses.
  

• The Kurdistan Region demands a 25 trillion IQD share.
  

• The Strait of Hormuz instability severely disrupted budget planning.
  

• Iraq is on the precipice of a severe financial crisis as the federal government grapples with a record-breaking projected deficit of 100 trillion Iraqi Dinars (IQD) in the upcoming 2027 national budget.

Key Statements and Focus Areas

• The total estimated volume of the 2027 budget will reach 200 trillion IQD, with nearly half of the entire fiscal plan consisting of a deficit.
  

• KRG based their 25 trillion IQD demand on the latest census data and strictly reject any settlement limited solely to employee salaries.

Channel8 has learned that there is a critical mismatch in state finances: monthly oil revenues have plummeted to just 2.5 trillion IQD, while the government requires 10 trillion IQD monthly to cover its basic operational expenditures. 

Consequently, oil revenues currently cover only one-quarter of the country's public salaries and ministerial expenses, forcing Baghdad to actively pursue internal and external borrowing options to sustain state operations.

The total estimated volume of the 2027 budget is set to reach 200 trillion IQD, meaning nearly half of the entire fiscal plan will consist of a deficit. 

The federal framework allocates 150 trillion IQD toward public sector salaries and general state expenditures, while reserving 50 trillion IQD for investment and infrastructure projects.

Amid these financial strains, the Kurdistan Region is formally demanding a 14.1% share of the national budget, which equates to approximately 25 trillion IQD. 

Regional authorities have based this claim on the country's latest census data and have strictly rejected any fiscal settlement that limits their allocation exclusively to public employee salaries. 

To optimize state spending and prevent institutional financial waste, Iraq is collaborating with the World Bank to implement a comprehensive "Program and Performance Budgeting" system.

FYI

Drafting the budget blueprint has faced severe disruptions due to dropping global energy prices and acute instability surrounding the Strait of Hormuz. Because Iraq relies on oil revenues to fund 90% of its national budget, maritime security threats to its primary export corridor pose a direct risk to national stability.

To mitigate these adverse market effects, Baghdad is urgently seeking alternative oil export routes. Current strategic plans include expanding export capacities through the Syrian Port of Baniyas and finalizing an agreement to sell one million barrels of oil to Turkey.

Meanwhile, the Iraqi Parliamentary Finance Committee, chaired by MP Uday Awad Kadhim, met last week with Budget Department Director General Milad Ziad Abdul Mawla to finalize fiscal reforms for the 2027 state budget. 

The high-level meeting focused on restructuring the budget to maximize public revenues, enhance spending accuracy, and systematically reduce the state's reliance on oil. 

The Iraqi Ministry of Finance is scheduled to finalize the official budget draft by September, with plans to formally transmit the legislation to the Council of Representatives in October for parliamentary approval.

Concurrently, The Kurdistan Region's Ministry of Finance, chaired by Minister Awat Sheikh Janab, held a high-level meeting on Sunday to officially launch preparations for Iraq's 2027 federal budget.

Backed by the latest population census data, KRG is demanding a budgetary share that enables it to cover public salaries, operational costs, and critical infrastructure projects. 

The ministry plans to hold individual consultations with all government institutions in the coming days to finalize their specific financial needs and safeguard the Kurdistan Region's constitutional entitlements.    https://channel8.com/english/news/63036

Seeds of Wisdom RV and Economics Updates Wednesday Evening 8-5-26

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CLARITY Act Faces Critical Test: Senate Negotiations Stall as Digital Asset Reform Nears a Turning Point

The Senate's effort to advance landmark digital asset legislation has entered a decisive phase as bipartisan negotiations continue and time before the August recess rapidly diminishes.

Overview

• The CLARITY Act remains a top Senate priority, but unresolved bipartisan negotiations have placed this week's expected procedural vote in doubt.

• Lawmakers continue debating ethics provisions, illicit finance safeguards, and stablecoin rules, leaving the bill's path forward uncertain despite broad support for regulatory clarity.

• The outcome could shape how digital assets are regulated in the United States and influence the future modernization of global financial markets.

Key Developments

1. Senate Faces a Narrow Window

Senate Majority Leader John Thune continues to express support for bringing the CLARITY Act to the Senate floor before lawmakers leave for the August recess.

However, no cloture motion has yet been filed, meaning the procedural timeline has become increasingly compressed. Without cloture, the Senate cannot proceed to debate or a final vote.

2. Bipartisan Negotiations Remain the Primary Obstacle

While many lawmakers support establishing a regulatory framework for digital assets, key disagreements remain unresolved.

The principal issues include:

• Ethics provisions governing public officials.

• Illicit finance protections designed to combat money laundering.

• Stablecoin yield provisions that continue to divide lawmakers.

Democratic senators have indicated these issues must be resolved before sufficient support exists to advance the legislation.

3. Regulatory Certainty Remains a Priority

Supporters argue the CLARITY Act would establish long-awaited guidance defining the respective responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

A clearer regulatory framework could reduce uncertainty for financial institutions, technology companies, investors, and blockchain developers while encouraging responsible innovation within the United States.

4. Markets Continue Watching Washington

Although cryptocurrency prices continue responding to broader macroeconomic developments, investors are also monitoring progress on the CLARITY Act.

Regulatory certainty is widely viewed as an important factor for:

• Institutional investment

• Digital asset innovation

• Long-term market confidence

A delay would not necessarily end the legislative effort but could postpone implementation until Congress reconvenes after the August recess.

Why It Matters

The CLARITY Act extends well beyond cryptocurrency. It represents one of the most significant efforts by Congress to establish a comprehensive legal framework for digital financial assets within the U.S. financial system.

As governments around the world continue developing policies for blockchain technology, digital payments, and tokenized financial assets, the United States faces increasing pressure to provide regulatory certainty while maintaining financial stability and market integrity.

Why It Matters to Foreign Currency Holders

• Regulatory clarity can strengthen confidence in U.S. financial markets.

• Institutional adoption of digital assets may influence future capital flows.

• Clear market rules could support broader investment participation.

• Global financial innovation increasingly intersects with traditional currency and payment systems.

Implications for the Global Reset

• Pillar: Assets

The CLARITY Act seeks to define how digital assets fit within the existing financial system. Clear regulations could encourage broader institutional participation while providing investors with greater legal certainty and improving overall market confidence.

• Pillar: Technology

Blockchain technology continues moving from emerging innovation toward mainstream financial infrastructure. Establishing a regulatory framework supports the responsible integration of digital assets into banking, investment, and payment systems while promoting long-term financial modernization.

Conclusion

The coming days will determine whether lawmakers can overcome the remaining procedural and policy differences needed to move the CLARITY Act forward.

While negotiations continue, the broader objective remains unchanged: creating a regulatory framework that balances innovation, consumer protection, and financial stability.

This is not simply about cryptocurrency regulation—it reflects the broader modernization of financial markets as governments work to establish the legal framework for integrating digital assets into the global financial system.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• CoinGape — "Breaking: CLARITY Act Senate Vote This Week Could Fail As Democrats Remain Hostile"

• Investor's Business Daily — "Senate Pushes Toward CLARITY Act Vote Before August Recess"

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‍The Fuse is Lit: Shock US Decision for Full Fiat Destruction

‍The Fuse is Lit: Shock US Decision for Full Fiat Destruction

Daniela Cambone:  8-4-2026

"This isn't just about the yen—it's about the beginning of a fiat currency crisis." — Gareth Soloway

In a recent episode of The Daniela Cambone Show via ITM Trading, market strategist Gareth Soloway joined Daniela Cambone to dissect the moving parts of the global financial engine. From the unprecedented currency maneuvers between the US and Japan to the long-term trajectories for precious metals and digital assets, Soloway provides a masterclass in technical analysis blended with macroeconomic reality.

One of the most striking developments discussed in the interview is the coordinated intervention involving the US and Japan to stabilize the Japanese Yen.

Soloway highlights a peculiar detail that many missed: the strategic use of the Euro, rather than the US Dollar, in this intervention. According to Soloway, this tactical choice underscores a growing concern among global central banks regarding the stability of fiat currencies.

By utilizing the Euro, authorities can attempt to manage currency values without directly signaling a crisis in the Dollar, yet the underlying message remains clear—the “fiat domino effect” is a looming risk. As global debt levels climb, the stability of traditional currencies becomes more fragile, necessitating these high-stakes interventions.

For those focused on wealth preservation, Soloway’s outlook on gold remains decidedly bullish, though he cautions that the path is not a straight line. While short-term fluctuations are expected, his technical analysis points toward a massive structural surge in gold prices, peaking between 2029 and 2031.

This forecast is rooted in the belief that the current cycle of debt expansion and currency devaluation will eventually lead to a “flight to quality.” Gold, as the ultimate historical store of value, stands to benefit most as investors seek alternatives to a weakening fiat system.

In contrast to gold’s clear upward trajectory, Soloway offers a more nuanced view of silver. While silver often moves in tandem with gold, it faces unique challenges due to its dual identity as both a monetary metal and an industrial commodity. Soloway notes that silver continues to face significant technical resistance levels.

Furthermore, economic headwinds—such as a potential slowdown in global manufacturing—could dampen silver’s recovery. While it remains an essential asset to watch, Soloway suggests that silver’s path to new highs may be more turbulent than gold’s due to these broader economic sensitivities.

The conversation transitioned into the digital realm, where Bitcoin continues to be a point of intense speculation. Soloway observes that while Bitcoin shows signs of near-term bullishness, it is not yet out of the woods. He points to a critical risk factor: the high level of leverage among institutional holders. We are currently in a multi-year price drawdown cycle, a phase that historically involves significant volatility before a true bottom is established.

Soloway suggests there may be further downside before a long-term accumulation phase begins, urging crypto investors to remain disciplined and wary of the risks associated with excessive leverage in the market.

The overarching theme of Gareth Soloway’s analysis is one of caution and preparation. We are living through an era of rising global debt and increasing currency instability, factors that traditionally favor “hard assets.”

Whether it is the strategic intervention in the Yen or the cyclical movements of Bitcoin, the common denominator is a search for stability in an unstable system. For investors, the takeaway is clear: understanding the technical levels is important, but understanding the macroeconomic “why” is essential for long-term success.

Chapters:

00:00 - Intro

01:47 - US-Japan Yen Intervention Explained

05:14 - Gold Outlook & Long-Term Price Target

07:12 - Silver Technical Analysis & Key Levels

08:19 - Bitcoin Price Outlook & Strategy Risks

09:44 - Bitcoin Sentiment & Institutional Adoption

11:38 - Why the Yen Intervention Matters Long Term

12:49 - Final Thoughts

https://www.youtube.com/watch?v=8TuzfQxz4CY

Seeds of Wisdom RV and Economics Updates Wednesday Afternoon 8-5-26

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Hormuz Diplomacy Continues: Markets Bet on Lower Energy Prices While Key Risks Remain

Ongoing U.S.–Iran diplomatic efforts are easing pressure on global energy markets, but unresolved security and nuclear issues continue to leave investors watching for the next major development.

Overview

Diplomatic discussions between the United States and Iran continue, raising cautious optimism that further progress could reduce tensions surrounding the Strait of Hormuz, one of the world's most important energy corridors. Although no final agreement has been announced, recent statements from U.S. officials have encouraged financial markets.

Investors responded by pushing oil prices lower, while global equity markets strengthened as traders priced in a reduced risk of major supply disruptions. Lower energy prices also helped reinforce expectations that inflation could continue moderating in the months ahead.

At the same time, significant issues remain unresolved, including Iran's nuclear program, regional security concerns, and the long-term framework for any future agreement. Markets are treating the negotiations as a positive development—but not yet a permanent solution.

If diplomacy continues to advance, the benefits could extend far beyond the Middle East by improving global trade, lowering transportation costs, and reducing inflationary pressures across many economies.

Key Developments

1. Diplomatic Talks Continue

Senior U.S. officials indicated that negotiations with Iran remain active, with both sides continuing discussions aimed at reducing regional tensions.

• Markets are closely monitoring any announcement of a formal agreement.

• Diplomatic progress has improved investor confidence, even without a finalized deal.

2. Oil Markets Respond Favorably

Crude oil prices eased as traders reduced the geopolitical risk premium that had built into energy markets during recent military tensions.

• Lower oil prices help reduce fuel and transportation costs.

• Energy markets remain sensitive to any setback in negotiations.

3. Strait of Hormuz Remains Critical

The Strait of Hormuz continues to serve as one of the world's most important energy chokepoints, carrying a substantial share of global crude oil exports.

• Safe navigation remains essential for global energy security.

• Shipping companies continue monitoring regional military activity.

4. Inflation Outlook Improves

Declining energy prices have strengthened expectations that inflation pressures may continue easing.

• Lower energy costs reduce expenses throughout the economy.

• Central banks may gain greater flexibility if inflation continues to moderate.

5. Financial Markets Look Beyond the Headlines

While equity markets have welcomed the diplomatic progress, investors recognize that negotiations remain ongoing.

• Treasury yields have eased as inflation expectations softened.

• Markets continue balancing optimism with caution until concrete agreements are finalized.

Why It Matters

Energy prices influence nearly every sector of the global economy. When oil prices fall, businesses often experience lower operating costs while consumers benefit from reduced fuel and transportation expenses.

For central banks, lower inflation pressure can reduce the need for tighter monetary policy, helping stabilize borrowing costs, government debt financing, and financial markets.

Although diplomacy has improved market sentiment, lasting stability will depend on whether negotiations produce durable agreements rather than temporary pauses in tensions.

Why It Matters to Foreign Currency Holders

• Lower energy costs can strengthen confidence in global financial markets.

• Reduced inflation may support greater stability in exchange rates.

• Improved trade flows can enhance international capital movement.

• Central bank policy decisions remain an important factor influencing currency valuations.

Implications for the Global Reset

• Pillar: Energy

Progress in diplomatic negotiations could improve stability in one of the world's most important energy corridors. More reliable energy supplies help reduce inflation risks and strengthen global economic confidence.

• Pillar: Trade

Safer shipping through the Strait of Hormuz supports global commerce by lowering transportation costs and reducing supply chain uncertainty. Stable trade routes remain essential for international economic growth.

Conclusion

Markets are increasingly betting that diplomacy can reduce geopolitical risk and stabilize global energy supplies, but important challenges remain unresolved.

The current market response reflects optimism that negotiations will continue moving in a constructive direction while recognizing that setbacks remain possible.

This is not simply about diplomacy—it reflects how energy security, global trade, and financial stability remain deeply interconnected as governments work to reduce geopolitical risk and strengthen the foundations of the global financial system.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• Reuters — "Global Markets Rise as Investors Watch U.S.–Iran Diplomacy and Energy Prices"
  ‍ ‍Reuters — "Oil Prices Ease as Markets Monitor Middle East Developments"

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Iraq Economic News and Points To Ponder Wednesday Morning 8-5-26

Iraq's Issued Currency Hits $86.3B In May

2026-08-04  Shafaq News- Baghdad   Iraq's issued currency rose to 113.560 trillion dinars ($86.3B) at the end of May 2026, up from 112.896 trillion dinars ($85.8B) a month earlier, as cash circulating outside the banking system continued to increase, according to official data released by the Central Bank of Iraq (CBI).

Compared with the end of 2025, issued currency increased to 99.799 trillion dinars ($75.8B). Net currency circulating outside banks climbed to 106.812 trillion dinars ($81.2B) at the end of May, up from 104.542 trillion dinars ($79.5B) a month earlier and 92.560 trillion dinars ($70.3B) at the close of last year.

Cash held by banks fell to 6.748 trillion dinars ($5.1B) from 8.354 trillion dinars ($6.3B) at the end of April and 7.239 trillion dinars ($5.5B) at the close of 2025.

Economic expert Mohammed Al-Hassani told Shafaq News that the increase in issued currency indicates the CBI injected additional liquidity into the economy. The continued concentration of cash outside banks, coupled with declining bank holdings, reflects the persistent preference of individuals and businesses to hold money outside the banking system, limiting banks' capacity to expand lending and support broader economic activity, he added.

https://www.shafaq.com/en/Economy/Iraq-s-issued-currency-hits-86-3B-in-May

Exclusive: Iraq’s Currency In Circulation Surges Past $86B

2026-08-04 Shafaq News- Baghdad  Iraq’s currency in circulation reached 113.560 trillion dinars ($86.3B) in May 2026, adding 13.761 trillion dinars ($10.6B), or 13.8%, from the end of 2025, according to a review by Shafaq News on Tuesday.

Currency in circulation rose steadily during the first five months of 2026, starting at 99.799 trillion dinars ($76.8B) in December 2025 before reaching 101.431 trillion dinars ($78.1B) in January. The figure then climbed to 104.614 trillion dinars ($80.5B) in February, 108.985 trillion dinars ($83.8B) in March, 112.896 trillion dinars ($85.8B) in April, and 113.560 trillion dinars ($86.3B) in May.

The largest monthly change came in March, when currency in circulation expanded by around 4.371 trillion dinars ($3.4B). The amount recorded another gain of 3.911 trillion dinars ($3.0B) in April before slowing in May, with an increase of about 664 billion dinars ($511M).

The rise coincided with pressure on Iraq’s public finances, including a gap between government revenues and spending, disruptions in oil revenue flows, and delays in salary payments for some state institutions.

Mahmoud Dagher, a financial and banking expert who previously served as a director general at the Central Bank of Iraq (CBI), described currency in circulation as a normal CBI operation but noted that it had become the only available short-term measure to provide liquidity during the current period.

Warning that the policy could contribute to inflationary pressure and place additional strain on foreign currency reserves, he stressed that Baghdad had limited alternatives and was forced to rely on the measure as the lesser of two risks.

“Iraq did not have access to external financial support or a sovereign wealth fund that could provide additional resources,” Dagher added, pointing to limited alternative oil export channels.

Earlier today, the CBI reported that Iraq’s currency in circulation stood at 113.560 trillion dinars ($86.3B) at the end of May 2026, compared with 112.896 trillion dinars ($85.8B) a month earlier, as currency circulating outside the banking system continued to expand. https://www.shafaq.com/en/Economy/Exclusive-Iraq-s-currency-in-circulation-surges-past-86B

Oil Slides Further On Iran Diplomacy Hopes

2026-08-05 Shafaq News   Oil extended declines on Wednesday after steep falls in the previous two trading sessions, as investors waited ​to see if efforts to end the Iran war and restore traffic through ‌the blockaded Strait of Hormuz were making progress.

Brent crude futures dropped 92 cents, or about 1.2%, to $78.44 a barrel by 0330 GMT. They have tumbled more than 12% for the week thus far.

U.S. West Texas ​Intermediate futures lost $1.07, or 1.4%, to stand at $74.70 a barrel and are down ​more than 11% this week.

Qatar said on Tuesday mediators were making progress in ⁠efforts to end the war, driving oil prices lower, although Tehran has denied U.S. President ​Donald Trump's assertion that talks are underway. Brent closed more than 5% lower on Tuesday below $80 ​a barrel for the first time since July 13.

"While the immediate geopolitical premium has unwound, the broader supply picture warrants caution," said Priyanka Sachdeva, head of market insights at Phillip Nova.

"If diplomatic efforts fail and physical ​supply is ultimately affected, the current pullback could prove short-lived, with tighter inventories amplifying ​the impact of any future supply shock," Sachdeva added.

Prior to the beginning of the war, some 20% of ‌the ⁠world's oil and liquefied natural gas transited through the strait, and in March alone prices rose 50%.

"The main sticking point appears to be whether Iran will continue to insist on a degree of control over the waterway, and whether the U.S. will stand its ground and ​refuse that outcome," analysts ​from IG said ⁠in a note.

Trump and Qatar's Emir Sheikh Tamim bin Hamad Al Thani discussed efforts to narrow differences between Washington and Tehran and improve ​the prospects for a lasting settlement during a phone call on ​Tuesday, Qatar's Emiri ⁠office said.

U.S. crude and gasoline inventories rose while distillate stocks fell last week, market sources said on Tuesday, citing data from the American Petroleum Institute.

Crude stocks rose by about 2.7 million barrels ⁠in the ​week ended July 31, the sources said on condition ​of anonymity.

Official numbers from the U.S. Energy Information Administration are due at 10:30 a.m. ET (1430 GMT) on Wednesday.  (REUTERS)

https://www.shafaq.com/en/Economy/Oil-slides-further-on-Iran-diplomacy-hopes

Basrah Crudes Rise Despite Benchmark Losses

2026-08-05 Shafaq News- Basrah   Iraq’s Basrah crude climbed about 3% on Wednesday, amid losses in benchmark crude futures.

Basrah Heavy crude rose by $1.57, or 3.03%, to $53.33 per barrel, while Basrah Medium crude gained $1.57, or 2.90%, to settle at $55.63 per barrel.

Brent crude futures fell by 92 cents, or about 1.2%, to $78.44 a barrel, while US West Texas Intermediate futures lost $1.07, or 1.4%, to $74.70 a barrel.

OPEC's basket held steady at $79.50 per barrel, while Saudi Arabia's Arab Light crude rose to $74.45 per barrel.

https://www.shafaq.com/en/Economy/Basrah-crudes-rise-despite-benchmark-losses

Iraq Ships 7K+ Tons Of Cement To Syria Monthly

2026-08-05 Shafaq News- Baghdad/ Damascus   Iraq's state-run Al-Qaim Cement Plant has reached its full design capacity of 840,000 metric tons annually, enabling it to meet domestic demand while exporting around 7,500 metric tons of sulfate-resistant cement to Syria each month.

The General Company for Iraqi Cement, part of the Ministry of Industry and Minerals, said the facility produces about 70,000 metric tons monthly, supplying Al-Anbar and other Iraqi provinces. It added that the plant operates around the clock to strengthen Iraq's self-sufficiency and expand the country's cement exports.

Iraq launched its first cement exports to Syria through the Al-Waleed border crossing in May. At the time, Musheer al-Ramah, head of the media office for Syria's border crossings and customs authority, said the shipments were expected to increase local supply, stabilize prices, and support Syria's construction sector and related industries.

A senior economic adviser at Syria's Ministry of Economy previously told Shafaq News that Baghdad and Damascus aim to double bilateral trade within the next two years, with commercial exchange expected to surpass pre-war levels before the end of 2027. https://www.shafaq.com/en/Economy/Iraq-ships-7K-tons-of-cement-to-Syria-monthly

Small Tanker Fleet Costs Iraq Millions In Shipping Revenue

2026-08-05 Shafaq News- Baghdad   Iraq’s limited oil tanker fleet is forcing the country to depend on foreign vessels to transport most of its crude exports, leaving Baghdad unable to secure additional revenues from shipping and insurance services, oil sector officials told Shafaq News on Wednesday.

The country operates only a small number of tankers through the state-run Iraqi Oil Tanker Company, including the large vessels Akad and Baghdad, along with Tigris and Euphrates. However, those vessels are insufficient to handle the millions of barrels of crude Iraq sends to global markets each day.

Officials, who spoke on condition of anonymity, noted that the use of foreign carriers also reduces the additional value generated from oil exports compared with some Gulf producers that have developed extensive maritime networks alongside their energy industries.

Iraq’s current situation stems from decades of disruption that weakened its maritime capabilities. The country previously maintained a larger fleet, but wars and international sanctions contributed to the decline of its tanker operations and forced many vessels out of service.

“Rebuilding a modern national tanker fleet could improve the security of Iraq’s exports, reduce dependence on foreign shipping companies and create new sources of revenue for the state,” the officials added.

According to the mechanisms used by Iraq’s state-run Oil Marketing Company (SOMO), most crude sales are conducted under the Free on Board (FOB) system, meaning its responsibility ends once the oil is loaded onto vessels at export terminals. After that stage, buyers cover transportation costs, insurance and the risks associated with moving the cargo.

Oil remains the backbone of Iraq’s economy, with crude shipments exceeding 3 million barrels per day (bpd) and income from petroleum sales accounting for more than 84% of government revenues.

Read more: Iraq’s oil bottleneck: Abundance trapped by dependency

https://www.shafaq.com/en/Economy/Small-tanker-fleet-costs-Iraq-millions-in-shipping-revenue

Seeds of Wisdom RV and Economics Updates Wednesday Morning 8-5-26

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Global Bond Markets Flash Warning Signals: Rising Treasury Yields Test Confidence in the Financial System 

Global bond markets are sending an increasingly important message as investors weigh persistent inflation, growing government debt, and the Federal Reserve's next policy moves, with implications reaching far beyond Wall Street.

Overview

• Global bond markets remain under pressure as investors demand higher yields to compensate for inflation risks and record levels of government borrowing.

•  Federal Reserve officials continue emphasizing inflation concerns, even after holding interest rates steady, leaving markets uncertain about whether additional tightening may be needed.

• The Treasury market is increasingly becoming the focal point of global finance, influencing everything from mortgage rates and business lending to currency values and government borrowing costs.

Key Developments 

1. Treasury Yields Continue Sending Warning Signals

Long-term U.S. Treasury yields remain near their highest levels in nearly two decades, reflecting investor concern that inflation may remain above the Federal Reserve's target for longer than previously expected.

Higher Treasury yields increase borrowing costs across the economy because they serve as the benchmark for many financial products, including mortgages, business loans, and corporate bonds.

2. Federal Reserve Faces Growing Policy Challenges

Kansas City Federal Reserve President Jeff Schmid warned that inflation remains too high and suggested monetary policy may need to remain restrictive until inflation clearly moves toward the Fed's 2% objective.

Markets continue watching employment and inflation data closely, knowing that stronger-than-expected economic reports could increase expectations for additional policy tightening later this year.

3. Debt Markets Are Becoming Increasingly Sensitive

Investors are paying closer attention to the growing amount of government debt that must be financed in coming years.

As governments issue more debt, investors may require higher yields before purchasing Treasury securities, increasing borrowing costs and placing additional pressure on public finances.

4. Stocks Remain Strong Despite Bond Market Stress

Equity markets continue trading near record highs, supported by strong corporate earnings and optimism surrounding artificial intelligence investments.

However, bond market volatility beneath the surface suggests investors remain cautious about inflation, Federal Reserve policy, and longer-term financial stability.

Why It Matters

The U.S. Treasury market serves as the foundation of the global financial system. Nearly every major financial asset—from mortgages and municipal bonds to corporate debt and international lending—is influenced by Treasury yields.

When yields rise because investors demand greater compensation for inflation or fiscal risks, borrowing becomes more expensive throughout the economy. That can slow investment, increase government interest costs, and place additional pressure on both consumers and businesses.

Why It Matters to Foreign Currency Holders

Foreign currency holders should watch Treasury markets closely because interest-rate expectations directly influence currency valuations.

Higher Treasury yields often strengthen demand for U.S. dollar-denominated assets, while prolonged fiscal stress can encourage countries to diversify reserves and explore alternative settlement systems.

Implications for the Global Reset

• Pillar: Debt

Rising Treasury yields highlight the growing challenge of financing expanding government debt. As borrowing costs increase, governments worldwide may face more difficult fiscal decisions and greater pressure to manage deficits responsibly.

• Pillar: Assets

Bond market volatility affects nearly every major asset class. Changes in Treasury yields influence stock valuations, precious metals, real estate financing, and global capital flows, reinforcing the Treasury market's central role in the international financial system.

Conclusion

While stock markets continue reaching new highs, bond markets are signaling greater caution. Investors remain focused on inflation, Federal Reserve policy, and the sustainability of government borrowing.

The Treasury market often provides one of the earliest indicators of underlying financial stress. Its movements deserve close attention because they influence borrowing costs, investment decisions, and monetary policy around the world.

This is not simply about Treasury yields—it reflects the broader challenge of maintaining confidence in the global financial system as governments balance inflation, rising debt, and long-term economic stability.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• MarketWatch — "Treasury Yields Hover Below Recent Highs Ahead of Jobs Data"

• Reuters — "Fed's Schmid Calls for Tighter Monetary Policy to Tame Inflation"

~~~~~~~~~~

🌱 A Message to Our Currency Holders🌱

If you’ve been holding foreign currency for many years, you were not foolish.
You were not wrong to believe the global financial system would change.

What failed was not your patience — it was the information you were given.

For years, dates, rumors, and personalities replaced facts, structure, and proof. “This week” predictions created cycles of hope and disappointment that were never based on how currencies actually change.

That is not your failure.

Our mission here is different:   • No dates • No rates • No hype • No gurus

Instead, we focus on:
• Verifiable developments • Institutional evidence
• Global financial structure • Where countries actually sit in the process

Currency value changes only come after sovereignty, trade, banking, settlement systems, and fiscal coordination are in place. History and institutions confirm this sequence.

You will see silence. You will see denials. That is not delay — that is discipline.

Protect your identity. Organize your documents.      Verify everything.
Never hand your discernment to anyone who cannot show proof.

You deserve truth — not timelines.

Seeds of Wisdom Team
Newshounds News

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Iraq Economic News and Points To Ponder Tuesday Evening 8-4-26

Currency Printing Is Knocking On Iraq's Door... Warnings Of An Economic Catastrophe

August 4, 2026 Last updated: Al-Mustaqilla/- Al-Mada newspaper revealed in a report followed by “Al-Mustaqilla”, the escalation of the financial liquidity crisis in Iraq, after the Parliamentary Finance Committee proposed the option of resorting to printing currency to secure employee salaries and avoid a financial crisis that some MPs described as potentially leading to a “revolt of hungry stomachs”, at a time when economists warn that this option may open the door to a dangerous wave of inflation if it is not accompanied by a real increase in production.

According to the report, Jamal Kojar, a member of the parliamentary finance committee, said that printing currency has become one of the options being considered to overcome the current liquidity crisis, despite the awareness of the economic risks involved. He explained that the government is facing a time gap due to the delay in receiving oil revenues, which are received two or three months after the sales.

Kujer explained that the options available to the government have become limited, noting the difficulty of relying on recovering funds from corruption cases within a short period, as well as the fact that increasing non-oil revenues or activating other resources requires a long time.

He explained that the halt or decline in export activity as a result of security and regional developments has directly affected revenues, noting that Iraq is now facing difficulty in maintaining normal export levels, which has led to significant pressure on government liquidity.

The report indicated that the Finance Committee believes the government faces difficult choices between using part of the cash reserve or taking exceptional measures to provide the necessary funds for operational expenses, primarily employee salaries.

In contrast, economic experts warned of the dangers of printing money without real economic growth, stressing that the problem facing Iraq is not financial bankruptcy, but rather mismanagement of resources and excessive reliance on oil as a primary source of revenue.

Economic expert Jalil Al-Lami said that Iraq possesses significant financial resources, including foreign reserves, gold reserves, and a huge oil wealth, but the problem lies in the structure of the economy, which relies heavily on oil in contrast to weak non-oil revenues and high operational spending.

Al-Lami warned that issuing large quantities of currency without increasing production will lead to higher inflation, a decline in the purchasing power of the dinar, and an increase in demand for the dollar, which may be reflected in the prices of goods and local markets.

He pointed out that the experiences of countries such as Zimbabwe and Venezuela have shown the danger of resorting to printing money as a solution to financial crises, stressing that this measure could turn from an attempt to address a temporary crisis into a cause of a deeper economic crisis.

Economists have suggested other alternatives, including domestic borrowing through government bonds, reprioritizing spending, strengthening tax and customs revenue collection, increasing oil exports, and activating the private sector.

The controversy over printing currency comes at a time when the Iraqi economy is facing increasing pressure due to its heavy reliance on oil revenues and the ballooning wage bill and operating expenses, amid warnings that continuing to address crises temporarily without structural reforms could exacerbate financial challenges in the coming period.

https://mustaqila.com/طباعة-العملة-تطرق-باب-العراق-تحذيرات-م/

An Economist Says Iraq Has Entered A Phase Of "Paying The Price" As A Result Of Accumulated Mismanagement And Corruption - Urgent

  Baghdad Today - Baghdad Economic expert Ziad Al-Hashemi said on Tuesday (August 4, 2026) that Iraq has entered a phase of "paying the price" for what he described as the accumulation of failures, corruption and mismanagement over more than twenty years, considering that the current crisis is the result of the policies of successive governments, in addition to the responsibility of political parties, parliament and oversight institutions.

Al-Hashemi said, in a statement followed by “Baghdad Today”, that financial and administrative losses and failures have accumulated during the past years without real treatment, accusing political forces of being preoccupied with “dividing the spoils”, while the regulatory and legislative bodies were unable or negligent in performing their role in accountability and reform.

He added that, in his view, the responsibility is not limited to governments, but extends to the parliament that approved large budgets, the political forces that dealt with the state according to the logic of power-sharing, as well as regulatory institutions, elites, media and the public, some of whom he said contributed, to varying degrees, to the continuation of the existing approach.

Al-Hashemi pointed out that Iraq is not facing a temporary liquidity crisis, but rather is going through the repercussions of what he described as an economic and political system that relied on quotas, corruption and buying loyalties, considering that the reform opportunities that were available during the years of financial abundance were not invested in building a diversified economy that is more capable of facing crises.

He warned that continuing to address the crisis through borrowing or postponing payments, without implementing structural reforms, could prolong the economic challenges, stressing that the cost of this would be borne by the citizens.

Economic and political experts offer differing views on the causes of the crisis and ways to address it, amid repeated calls for the implementation of financial and economic reforms, diversification of income sources, and a reduction in dependence on oil.  https://baghdadtoday.news/304321-.html

Salary Delays Are Putting Pressure On The Iraqi Economy; Warnings Of A Widening Cost-Of-Living Crisis And Market Contraction.

Baghdad Today - Special:The debate in Iraq is renewed with every delay in paying the salaries of state employees, amid warnings of economic and social repercussions that go beyond the employees to affect the markets, the private sector and the entire local economy.

Experts confirm that salaries represent the main driver of financial liquidity in the country, so any disruption in their disbursement directly affects trade and the purchasing power of citizens. Economic expert Nasser Al-Tamimi warned today, Tuesday (August 4, 2026), against the continued delay in disbursing the salaries of state employees, stressing that this crisis has become a direct threat to economic and social stability, with the accompanying negative repercussions on the livelihood of millions of citizens and economic activity in the country.

Al-Tamimi told Baghdad Today that “the delay in paying salaries is no longer just a temporary financial measure, but has turned into a recurring crisis that casts its shadow on the markets, the private sector and trade, in addition to its direct repercussions on the ability of families to meet their basic needs and fulfill their financial obligations.”

He explained that “the continuation of the crisis during the next stage will lead to a decline in the purchasing power of citizens, a contraction of economic activity, and an increase in personal debt rates, as well as an increase in psychological and social pressures on the segment of employees, which represents one of the basic pillars of the national economy.”

He added that "the delay in salaries also affects the performance of government institutions, as a result of the decline in job security and morale of employees, which may affect the level of services provided to citizens and weaken the efficiency of administrative performance."

Al-Tamimi stressed that “the concerned authorities must expedite addressing the causes of the crisis and put in place financial and administrative mechanisms that ensure the regular disbursement of salaries according to the specified dates, as the stability of salaries represents a fundamental factor in strengthening confidence in the economy, supporting local markets, and maintaining social stability.”

He added that "addressing the issue of salaries should be a national priority, given its direct link to economic and social security. We must also be wary that continued delays will double the size of the economic challenges and increase the suffering of citizens in the coming months."

Public sector employees constitute the largest proportion of the workforce in Iraq, and a large segment of families depend on government salaries as a primary source of income, making the regularity of their disbursement a key factor in the stability of local markets.

In recent years, delays in salary payments have become frequent in some months due to financial and administrative challenges and liquidity management procedures, raising concerns about effects extending to the commercial and service sectors, with declining consumer spending and increased living pressures on citizens.

https://baghdadtoday.news/304355-.html

Al-Bayati: Four Files Are On The Table For Hosting The Minister Of Finance, Most Notably Employee Salaries.

Information/Baghdad…   MP Mohammed Al-Bayati predicted on Tuesday that the Minister of Finance would be hosted next week, noting that four issues would be on the agenda for the meeting.

Al-Bayati explained in his interview with Al-Maalouma that “the financial situation in the country needs an objective reading to identify its challenges and propose solutions and alternatives, especially securing the salaries of Iraqi state employees and all ministries and institutions, especially with the delay in distributing the salaries of some ministries and bodies.”

He added that "the Minister of Finance may be hosted next week, and four files will be presented during it, most notably the financial balance, what alternatives are available, what the Ministry's approved plan is for the coming period, and solutions to it will be presented."

He stressed that "this file is very important, and the Ministry of Finance's assessment of the country's financial situation is crucial, as it will provide a roadmap for the nature of the current challenges." End/25

https://almaalomah-me.translate.goog/news/140225/politics/البياتي:-أربعة-ملفات-على-طاولة-استضافة-وزير-المالية-أبرزها-ر?_x_tr_sl=ar&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc

Seeds of Wisdom RV and Economics Updates Tuesday Evening 8-4-26

Good Evening Dinar Recaps,

Bond Market Warning: Rising Treasury Yields Signal Growing Pressure on the Global Financial System

While stock markets remain near record highs, rising Treasury yields are revealing deeper concerns about government debt, inflation, and the long-term stability of the global financial system.

Overview

• The U.S. Treasury market is sending warning signals as long-term bond yields remain near their highest levels since 2007, despite continued strength in equity markets.

• Investors are demanding higher returns to finance growing government debt, raising questions about how long governments can continue borrowing without significantly increasing interest costs.

• Because U.S. Treasuries serve as the foundation of the global financial system,sustained pressure in the bond market could influence everything from mortgage rates and business lending to currency values and global capital flows.

Key Developments

1. Treasury Yields Remain Near Multi-Year Highs

The 30-year U.S. Treasury yield continues trading near levels not seen since 2007, reflecting persistent concerns about inflation, fiscal deficits, and the growing supply of government debt.

Higher Treasury yields increase borrowing costs across the economy, affecting households, businesses, and governments alike.

2. Government Debt Is Becoming a Larger Market Concern

Investors are increasingly questioning how much additional debt governments can issue before markets demand substantially higher interest rates.

As debt issuance expands, governments must devote a larger share of future budgets to interest payments, placing additional strain on public finances.

3. Federal Reserve Faces a Difficult Balancing Act

Bond traders continue watching the Federal Reserve's inflation strategy closely.

If inflation remains above target, policymakers may need to maintain higher interest rates for longer. If economic growth slows too rapidly, pressure could build for future rate cuts. Either outcome carries important implications for financial markets.

4. Stocks and Bonds Are Sending Different Messages

One of today's most notable developments is the contrast between asset classes.

While U.S. stock indexes remain near record highs, Treasury market volatility suggests many institutional investors remain cautious about longer-term economic risks.

This divergence often attracts close attention because bond markets frequently react to underlying financial conditions before equity markets fully adjust.

5. Global Investors Continue Watching U.S. Debt Markets

The U.S. Treasury market remains the benchmark for global finance.

Central banks, sovereign wealth funds, pension funds, and institutional investors around the world rely on Treasury securities as a cornerstone of reserve management and portfolio allocation. Changes in Treasury yields therefore influence borrowing costs and investment decisions far beyond the United States.

Why It Matters

Although equity markets often receive the most attention, the Treasury market is widely considered the foundation of the global financial system. Rising yields affect mortgages, corporate financing, consumer credit, government borrowing, and international investment flows.

Persistent pressure in bond markets may also complicate monetary policy by limiting how aggressively central banks can lower interest rates if economic conditions weaken.

Why It Matters to Foreign Currency Holders

• Higher Treasury yields can attract international capital into U.S. dollar assets.

• Changes in interest rate expectations often influence global exchange rates.

• Government borrowing costs affect long-term fiscal stability and investor confidence.

• Currency values may become more volatile as global investors adjust portfolios in response to changing bond yields.

Implications for the Global Reset

• Pillar: Debt

Growing government borrowing and higher Treasury yields highlight the increasing challenge of financing expanding national debt. Markets are demanding greater compensation for lending, underscoring the importance of sustainable fiscal policies in the years ahead.

• Pillar: Assets

Treasury securities remain one of the world's most important financial assets. Shifts in bond yields influence valuations across stocks, real estate, currencies, and other asset classes, reinforcing the Treasury market's central role in global capital allocation.

Conclusion

Today's Treasury market signals suggest that investors remain focused on long-term structural risks, even as equity markets continue performing well. Rising yields reflect growing attention to inflation, fiscal deficits, and the sustainability of government borrowing.

Whether these pressures ease or intensify will depend largely on future inflation data, Federal Reserve policy, and investor confidence in the government's fiscal outlook.

This is not simply about rising Treasury yields—it reflects the broader challenge of financing growing government debt while preserving confidence in the global financial system, a critical component of the ongoing modernization and restructuring of international finance.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• MarketWatch — "Traders in the World's Most Important Financial Market Are Bracing for a Wild Stretch Ahead"
  

• Reuters — "Global Markets: Investors Watch Treasury Yields, Inflation and Central Bank Outlook"

~~~~~~~~~~

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Dinar Update | 113 Trillion Printed – 94% Outside the Banks | Why REER Is in Play

Dinar Update | 113 Trillion Printed – 94% Outside the Banks | Why REER Is in Play

MilitiaMan and Crew:  8-4-2026

The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

No drama. No intrigue. No songs and dances. Just straight, factual news that I read and interpret to the best of my ability after being an avid Dinar investor and insanely obsessed Dinarian for over 15 years.

Follow MM on X == https://x.com/Slashn

Be sure to listen to full video for all the news……..

https://www.youtube.com/watch?v=94hoB1biY78

Seeds of Wisdom RV and Economics Updates Tuesday Afternoon 8-4-26

Good Afternoon Dinar Recaps,

Hormuz Breakthrough? U.S.–Iran Talks Spark Global Market Optimism

Signs of a possible U.S.–Iran agreement are easing fears over the Strait of Hormuz, sending oil lower, boosting global markets, and raising hopes for improved financial stability.

Overview

• Treasury Secretary Scott Bessent indicated the United States could reach an agreement with Iran "today or tomorrow," signaling that diplomatic negotiations remain active despite recent military tensions.

• Financial markets reacted immediately, with oil prices falling, global stock markets advancing, and Treasury yields easing as investors anticipated reduced inflation risks if energy supplies remain secure.

• Because the Strait of Hormuz is one of the world's most important energy corridors, any lasting agreement could have significant implications for inflation, interest rates, trade, and the broader global financial system.

Key Developments

1. Diplomatic Momentum Builds

Treasury Secretary Scott Bessent's comments marked one of the strongest public indications yet that negotiations with Iran may be approaching a meaningful breakthrough.

Although no agreement has been finalized, markets interpreted the remarks as a sign that both sides continue pursuing a diplomatic solution rather than further escalation.

2. Markets Respond Immediately

Investors quickly adjusted expectations following the diplomatic news.

• Oil prices declined sharply as fears of supply disruptions eased.

• Global stock markets rallied on expectations of lower inflation.

• U.S. Treasury yields moved lower as investors anticipated reduced pressure on future interest rates.

The market reaction demonstrates how closely investors continue to monitor developments surrounding the Strait of Hormuz.

3. The Strait of Hormuz Remains Critical

The Strait of Hormuz transports approximately one-fifth of the world's seaborne oil exports, making it one of the most strategically important waterways on Earth.

Any improvement in regional stability reduces concerns over shipping disruptions, strengthens confidence in global energy supplies, and helps stabilize transportation costs throughout the global economy.

4. Inflation Outlook Improves

Lower oil prices could provide welcome relief after months of energy-driven inflation concerns.

Cheaper energy generally lowers:

• Transportation costs

• Manufacturing expenses

• Consumer fuel prices

This reduces inflationary pressure throughout the economy and gives central banks greater flexibility when setting monetary policy.

5. Global Financial Implications Extend Beyond Energy

While today's headlines center on diplomacy, the implications reach much further.

Stable energy markets support:

• Stronger economic growth

• Lower government borrowing costs

• Improved investor confidence

• Greater stability in currency and bond markets

These developments could influence monetary policy decisions well beyond the Middle East.

Why It Matters

The significance of today's developments extends far beyond oil markets. Energy prices influence nearly every sector of the global economy, affecting inflation, consumer spending, business investment, interest rates, and government finances.

If diplomatic progress continues and shipping through the Strait of Hormuz remains secure, policymakers could face less pressure to maintain restrictive monetary policies, supporting broader global economic stability.

Why It Matters to Foreign Currency Holders

• Lower energy prices can reduce inflation pressures that influence exchange rates.

• More stable global trade supports stronger international capital flows.

• Central banks may gain greater flexibility if inflation continues to moderate.

• Currency markets often respond positively when geopolitical risks decline and investor confidence improves.

Implications for the Global Reset

• Pillar: Energy

The Strait of Hormuz remains one of the world's most vital energy corridors. A durable diplomatic agreement would strengthen global energy security while reducing one of the largest geopolitical risks facing financial markets.

• Pillar: Trade

Safer maritime shipping lowers transportation costs, strengthens supply chains, and improves confidence in international commerce. Reliable trade routes remain essential to long-term global economic growth.

• Pillar: Debt

Lower oil prices help reduce inflation, easing pressure on central banks to maintain higher interest rates. Lower borrowing costs can improve government fiscal conditions while reducing financial strain on businesses and consumers.

Conclusion

Today's market reaction illustrates how closely the global financial system remains tied to developments in the Middle East. A single diplomatic breakthrough can influence oil prices, inflation expectations, interest rates, equity markets, and government borrowing costs within hours.

While negotiations remain ongoing, investors are increasingly optimistic that diplomacy may prevent further disruptions to one of the world's most important energy corridors.

This is not simply about a potential agreement between the United States and Iran—it reflects how energy security, global trade, inflation, and monetary policy remain deeply interconnected in the ongoing modernization and restructuring of the global financial system.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• Reuters — "Global Markets React as U.S.–Iran Diplomatic Hopes Rise"

• Wall Street Journal — “Bessent: Could Have a Deal With Iran Today or Tomorrow”

~~~~~~~~~~

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RV Updates Proof links - Facts Link

Start Here room with Most Asked Questions Link

Follow the Gold/Silver Rate COMEX

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Thank you Dinar Recaps

Iraq Economic News and Points To Ponder Tuesday Afternoon 8-4-26

Oil Rebounds On Renewed Middle East Tensions

2026-08-04 Shafaq News    Oil prices rebounded 1% on Tuesday from a plunge in the previous session, fuelled by concerns that ‌Middle East supply remains at risk as a diplomatic resolution to the U.S.-Iran war that has disrupted shipments still seems unlikely.

Front-month Brent futures rose $1.12, or 1.3%, to $84.89 a barrel by 0355 GMT after dropping 7% in the previous session to a three-week low.

U.S. West Texas Intermediate (WTI) crude was up ​77 cents, or 1%, at $81.11 after falling more than 5% in the previous session to stand at its ​lowest in nearly a week.

Prices dropped after U.S. President Donald Trump said on Sunday he was ⁠holding off on new attacks on Iran pending ongoing talks to end their war and settle claims over control of the key ​Strait of Hormuz.

The strategic waterway, which connects Gulf oil producers to global markets, was a channel for about a fifth of ​global shipments of crude oil and natural gas before the conflict.

However, on Monday, Iran's Foreign Ministry spokesman Esmail Baghaei rejected Trump's claim, saying no negotiations with the U.S. were taking place and no meetings were scheduled.

"The scale of the sell-off seems fairly overdone, given that there's still considerable uncertainty. ​We’ve been in this situation multiple times before, only to see things unravel," ING analysts said in a note.

"And with Iran ​denying that any talks are underway and Trump issuing warnings if no deal materialises, the backdrop clearly leaves ample room for a renewed ‌escalation."

The Hormuz ⁠dispute is a central sticking-point in talks. Washington says the memorandum of understanding agreed in June required Iran to open the waterway, while Tehran says the text explicitly preserved its authority.

Analysts at Barclays said crude oil and refined product net exports through the strait averaged 4.2 million barrels per day in the week ended July 31, versus 3.2 million the previous week.

In the ​Red Sea, six Saudi-flagged supertankers changed course ​in the Gulf of ⁠Aden recently for southern Africa, while two tankers laden with Saudi oil crossed the Bab el-Mandeb Strait, shipping data showed on Monday.

Shipping traffic at the key Gulf waterways of Bab el-Mandeb and ​the Strait of Hormuz held largely unchanged at the start of the week.

Hormuz remains dangerous for ​vessels. On Tuesday, ⁠the United Kingdom Maritime Trade Operations agency flagged an incident 20 nautical miles (37 km) northeast of Oman's Al Khasab, after a cargo vessel broadcast over VHF channel 16 that it had been hit by an unknown projectile.

"While the fighting between Saudi Arabia and the Houthis ⁠has not ​completely halted energy flows, it has forced longer voyage times, higher insurance ​costs and occasional diversions," said Tim Waterer, chief market analyst at KCM Trade.

"With the Strait of Hormuz, it keeps a dual-chokepoint risk in the market that prevents ​oil from fully unwinding its geopolitical premium."  (Reuters)

https://www.shafaq.com/en/Economy/Oil-rebounds-on-renewed-Middle-East-tensions

Gold Rises As Markets Await Fed Clues

2026-08-04 Shafaq News   Gold nudged ​higher on Tuesday as investors weighed mixed signals on potential U.S.-Iran talks and ‌awaited a series of U.S. labour market reports for clues on the Federal Reserve's interest rate trajectory.

Spot gold rose 0.2% to $4,062.41 per ounce by 0504 GMT. U.S. gold futures rose 0.7% to $4,117.50.

Reports ​on U.S. labour market due this week include job opening data later in ​the day, the ADP employment report on Wednesday and nonfarm payrolls ⁠figures on Friday.

"Gold is currently in a consolidation phase. If we see weakness in ​the job market, it could pressure the U.S. dollar and as result there will be ​gains in gold," said Ajay Kedia, director at Mumbai-based Kedia Commodities.

U.S. President Donald Trump said talks with Iran were under way, warning of a "last chance" for Tehran to sign a good deal, but Iran ​denied that negotiations were being held or planned.

The conflict has driven up energy costs ​and stoked inflation fears, which could prompt central banks to raise interest rates to keep price ‌pressures in ⁠check.

While gold is seen as an inflation hedge, higher rates tend to weigh on the metal as it yields no interest.

Traders currently price in a 65% chance of a rate hike in September after a divided Fed maintained the status quo at its last ​policy meeting.

If bets for ​a September rate-hike ⁠ease, it will support gold prices, Kedia said.

Federal Reserve Bank of New York President John Williams said he remained optimistic that inflation ​pressures are on track to ease gradually, but if they don't, ​the U.S. ⁠central bank will not hesitate to respond with rate hikes.

Citi said in a note that it expects gold prices to stagnate or even decline over the next month, before rallying ⁠to $4,500 ​in the fourth quarter and to $5,000 by the first ​half of next year.

Spot silver gained 1.2% to $58.89 per ounce, platinum firmed 0.9% to $1,641.96 and palladium rose 0.9% ​to $1,275.83.   (Reuters)

https://www.shafaq.com/en/Economy/Gold-rises-as-markets-await-Fed-clues

Basrah Crude Prices Fall With Gains In Global Oil Markets

2026-08-04 Shafaq News- Baghdad   Iraq's Basrah crude prices posted notable losses on Tuesday, even as global oil prices moved higher, according to oil price data reviewed by Shafaq News.

Basrah Heavy crude fell to $51.76 per barrel, down $4.45, or 7.92%, while Basrah Medium crude dropped to $54.06 per barrel, down $4.45, or 7.61%, compared to the previous session.

Brent futures rose $1.12, or 1.3%, to $84.89 a barrel by 0355 GMT. US West Texas Intermediate crude gained 77 cents, or 1%, to $81.11 a barrel.

The gains came amid continued uncertainty over talks aimed at ending the US-Iran conflict and lingering concerns over the security of Middle East oil supplies.

https://www.shafaq.com/en/Economy/Basrah-crude-prices-fall-with-gains-in-global-oil-markets

USD/IQD Holds Ground In Baghdad, Advances In Erbil

2026-08-04 Shafaq News- Baghdad/ Erbil   The US dollar edged higher in Erbil as trading opened on Tuesday, while Baghdad's Al-Kifah and Al-Harithiya currency exchanges were closed due to the Arbaeen holiday.

According to Shafaq News market survey, some exchange shops in Baghdad sold the US dollar at 152,250 dinars per 100 dollars and bought it at 151,250 dinars.

In Erbil, the dollar sold for 152,900 dinars per 100 dollars and bought for 152,750 dinars.

The official exchange rate set by the Central Bank of Iraq stands at 132,000 dinars per 100 dollars.

https://www.shafaq.com/en/Economy/USD-IQD-holds-ground-in-Baghdad-advances-in-Erbil

Iraq Tops Arab Oil, Gas Agreements In July

2026-08-04 Shafaq News- Baghdad   Iraq signed the Arab world’s largest oil and gas deals in July 2026, topping regional energy investment with projects aimed at boosting production and expanding infrastructure, Washington-based energy research platform ATTAQA reported.

Baghdad ranked first after reaching agreements with US companies to advance nine oil fields across Kirkuk, Diyala, Basra, and Dhi Qar. The projects involve ConocoPhillips, Chevron, Halliburton, and HKN Energy and support the government’s goal of raising crude output to 6 million barrels per day, increasing associated gas production, and improving operational efficiency.

The contracts were concluded during Prime Minister Ali Al-Zaidi’s July visit to Washington, where Iraq also reached broader understandings with US companies covering infrastructure and technology.

Oman joined the list with oil field and tanker projects, while Qatar secured contracts for Libya’s Ghadames Basin and the Baleine offshore field in Côte d’Ivoire.

Read more: Iraq-US investment deals depend on implementation

https://www.shafaq.com/en/Economy/Iraq-tops-Arab-oil-gas-agreements-in-July

Gold Market Pauses In Baghdad, Erbil Moves Higher

2026-08-04 Shafaq News- Baghdad/ Erbil   Gold trading remained limited in Baghdad on Tuesday during the Arbaeen* holiday, while 21-carat gold hovered around 880,000 Iraqi dinars per mithqal (about five grams) in Erbil, according to Shafaq News survey.

In Baghdad's gold shops that remained open, imported 21-carat gold from the Gulf ranged from 870,000 to 880,000 dinars per mithqal, while Iraqi gold traded between 840,000 and 850,000 dinars.

In Erbil, where markets operated normally, 22-carat gold sold for 916,000 dinars per mithqal, 21-carat gold for 875,000 dinars, and 18-carat gold for 750,000 dinars.

* Arbaeen, observed this year on Aug. 4, marks the 40th day after the martyrdom of Imam Hussein, the third Shia Imam and grandson of the Prophet Muhammad, and draws millions of Shiite Muslims to Karbala annually, making it one of the largest religious gatherings in the world.

https://www.shafaq.com/en/Economy/Gold-market-pauses-in-Baghdad-Erbil-moves-higher