100 trillion dinars held in homes: Withdrawal restrictions fuel a "cash economy," but the central bank offers reassurance.
The New World
Confidence in the Iraqi banking sector is facing a critical test. While an economist warns that restricting withdrawals is fueling a “cash economy” and hoarding 100 trillion dinars in homes, the Central Bank rushed in an extraordinary session to reassure the markets, stressing the strength of the financial system and its ability to manage liquidity, in an attempt to bridge the gap between precautionary policies and depositors’ fears.
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Loss of confidence in banks
Economic expert Haider Abdullah Asfour told Al-Alam Al-Jadeed on Tuesday (March 10, 2026) that “the inability of citizens to withdraw their money in full from banks causes significant damage to the banking sector and the economy in general,” explaining that “this is mainly due to the weakness of those in charge of this sector, their lack of experience, and the confusion in dealing with crises, which greatly affects the work of banks.”
Local news sites reported on Monday that Rafidain and Rasheed banks are suffering from a severe liquidity crisis and a shortage of cash, with a clear decline in the funds available within them. Branches of the two banks have begun asking customers to wait or return later to receive their money in full, while some branches are providing part of the required amount and postponing the delivery of the rest.
Asfour explains that “one of the most prominent of these damages is the loss of confidence in the banking sector, as when a citizen cannot freely withdraw his money, he loses confidence in banks, which leads citizens to refrain from depositing their money in banks and prefer to keep cash at home instead of in banks.”
It is believed that “weak confidence also leads to a decline in bank deposits, as citizens begin to gradually withdraw their money from banks, which leads to a decrease in the volume of deposits and weakens the banks’ ability to lend and invest.”
Cash economy
He points out that “this also contributes to increasing the cash economy, as citizens keeping their money outside banks leads to an increase in cash circulation outside the banking system, which reduces the state’s ability to monitor financial and tax activity and the movement of funds that may be directed towards terrorism, support for extremist and terrorist groups, or corruption.”
He adds, “Among the repercussions is also the weakening of investment and development, as banks rely on deposits to finance projects, and when deposits decline, loans granted to small and medium enterprises decrease and economic growth slows down.”
Investors' reluctance
He continues, “Restricting withdrawals also leads to damage to the reputation of the banking system locally and internationally, as it harms the reputation of banks and leads to the reluctance of foreign investors and the difficulty for banks to enter into international partnerships.”
100 trillion dinars
Expert Asfour points to the existence of a large cash mass outside the banking system, saying: “The cash mass in Iraq amounts to about 100 trillion Iraqi dinars, which is equivalent to 75 to 76 billion dollars according to data from the Central Bank of Iraq at the beginning of 2026,” indicating that “about 70 to 90 percent of this cash is outside the banking system and in homes, which leads to a weakening of the credit role of banks.”
Asfour calls on decision-makers and those in charge of this “sector to reconsider the policies followed in a way that serves the Iraqi economy and the national interest and does not harm the interests of citizens and their confidence in the banking system.”
Iraqi market
The economist points out that “regional conditions, including the war between the United States and Israel on one side and Iran on the other, and what is related to the Strait of Hormuz and the halt in oil production, as well as the banks depositing about 117 trillion dinars with the Central Bank, in addition to the banks’ fears of the rise in the price of the dollar against the dinar, are all factors that have confused the Iraqi market.”
It also points to “practical problems faced by those dealing with banks, such as contractors who have payment vouchers issued by certain ministries and deposited with banks, but they face difficulty in receiving their money due to the lack of liquidity, which casts doubt on the banks’ ability and weakens confidence in them.”
Central Bank reassures
The Central Bank of Iraq confirmed on Monday that it continues to perform its constitutional and legal responsibilities in protecting monetary and financial stability and maintaining the strength and integrity of the banking system in Iraq.
The bank stated in a statement received by “Al-Alam Al-Jadeed” that the Central Bank’s Board of Directors held an extraordinary session to follow up on current economic and financial developments, review the most prominent macroeconomic indicators, and assess future expectations in light of local and international developments and the challenges or opportunities they may present to the national economy.
The statement added that during the meeting, the council conducted a comprehensive assessment of the monetary and financial market conditions, including an analysis of liquidity levels in the banking system and developments in the money supply, as well as a review of the levels of foreign reserves at the central bank.
The Council also reviewed financial stability indicators and the performance of the banking sector, in addition to monitoring foreign trade and payment flows, while assessing potential risks associated with regional and international economic variables and their potential repercussions on the Iraqi economy.
The council discussed a number of possible economic and financial scenarios for the next phase, focusing on how to enhance the flexibility of monetary policy and the sustainability of financial stability, and ensure the banking system’s ability to respond efficiently to the demands of economic activity.
Temporary shocks
Asfour affirms that “building a successful banking system requires an integrated and modern system that serves all parties,” stressing “the need to adopt economic policies that enhance confidence among investors and depositors instead of weakening it.”
He warns that “banks may be able to withstand temporary shocks, but they are required to look at the long term, enhance confidence, attract funds and investments, and encourage the localization of funds within banks through appropriate incentives and benefits, which will contribute to bringing the large monetary mass into the banking system and supporting financial stability in the country.”
Media sources revealed earlier (February 15, 2026) that the government was forced to withdraw about 20 trillion dinars from Al-Rafidain Bank, in addition to between 7 and 8 trillion dinars from Al-Rasheed Bank, as well as withdrawing about 7 billion dollars from another bank, along with sums of money from industrial and agricultural banks, in order to cover salaries during the past months.
The Prime Minister affirms his rejection of targeting any Iraqi cities
Prime Minister Mohammed Shia al-Sudani and members of the Kurdistan Democratic Party parliamentary bloc, headed by the second deputy speaker of parliament, Farhad Atrushi, affirmed their rejection of targeting any Iraqi cities.
The Prime Minister's Media Office stated in a statement that "Prime Minister Mohammed Shia Al-Sudani received today, Tuesday, members of the Kurdistan Democratic Party parliamentary bloc, headed by the Second Deputy Speaker of Parliament, Farhad Atrushi, and in the presence of the head of the Reconstruction and Development parliamentary bloc, Bahaa Al-Araji."
He added that "during the meeting, the general situation in the country and developments in the region were discussed, and emphasis was placed on rejecting the targeting of any Iraqi cities and not allowing Iraqi territory to be a launching pad for attacks on any country." He explained that "the meeting addressed the internal political situation, working diligently towards completing constitutional requirements, and the importance of integration between the executive and legislative authorities in order to advance various developmental aspects, serving all the people of the country."
Iraq's rentier economy: Will it eliminate the middle class?
The Iraqi economy's reliance on oil has made it a rentier economy that regulates political and social relations within the structure of the Iraqi state. It controls those relations on the one hand, but it reveals fragility in the country's economic environment on the other.
Researchers believe that oil revenues have, over time , become a tool for social and political control through rent distribution mechanisms, at a time when the Iraqi economy is facing increasing challenges related to the fragility of oil export outlets .
This comes amid a sensitive regional situation and rapidly unfolding events that could affect the stability of exports, making the security of export routes a key factor in the stability of the national economy.
“The rentier economy in Iraq cannot be understood as merely an economic model that depends on natural resources, but rather as a socio-political system that reproduces dependency and reshapes the relationship between the state and society,” says Ahmed Zahab, a social researcher and professor of psychology at the University of Baghdad.
He explained that this analysis is based on the theory of the “rentier state,” which holds that rent not only determines the sources of state funding, but also affects the nature of power and the mechanisms by which it manages society.
An economic resource for social control
Zahab added that oil in Iraq has transformed from an economic resource into a tool for social control and a means of political absorption, as the state no longer regulates the production process as much as it regulates the distribution of rent in exchange for political loyalty.
As a result, the class structure in society is no longer based on production, but has transformed into categories that depend to varying degrees on the resources distributed by the state.
middle class
He pointed out that one of the most prominent results of this transformation is the erosion of the independence of the middle class, which in stable societies is a productive and relatively independent class capable of achieving a balance between society and authority.
However, the rentier economy in Iraq led to the absorption of a large percentage of this class into the state apparatus, so their income became linked to the oil budget, while the spirit of economic initiative declined in favor of seeking a secure government job.
He explained that these transformations changed the role of the middle class from a force for social balance to a cautious class that tends towards political conservatism for fear of losing its privileges, which is reflected in a decline in the spirit of initiative and a diminished willingness to take economic or political risks.
Iraq's rentier economy is emptying the middle class of its substance.
Zahab emphasized that a rentier economy does not directly eliminate the middle class, but it gradually erodes its productive capacity and economic independence, and redefines the concepts of dignity and social standing. In productive societies, status is linked to competence, achievement, and added value, while in a rentier context, it becomes linked to proximity to decision-making centers and access to state resources.
Cultural and social extensions
He pointed out that this transformation is not limited to the economy, but extends to social culture, as it reinforces the culture of favoritism and weakens work ethics, which leads to the erosion of the symbolic value of work itself and the redefinition of the concept of success within society.
Zahab pointed out that a rentier economy creates what can be described as “funded stability” rather than “productive stability.” When oil prices rise, salaries increase, government hiring expands, and social tensions subside. Conversely, when prices fall, disguised unemployment emerges and economic pressures intensify, revealing the fragility of the economic structure and its dependence on external financial flows.
He explained that one of the most dangerous consequences of this economic model is the breakdown of the tax relationship between the citizen and the state, the inflation of the bureaucratic apparatus with a decrease in efficiency, in addition to the emergence of clientelist networks that permeate society and turn national wealth into a political tool.
He went on to say that Iraq's rentier economy not only redistributed wealth, but also social dignity itself. When social standing becomes linked to proximity to the state rather than to production and work, a deep structural flaw emerges in the concept of social justice.
Under these circumstances, favoritism and nepotism are reinforced as a mechanism for accessing resources, which weakens the sense of purpose and leads to increasing social frustration that may negatively affect psychological and social cohesion within the community.
The fragility of Iraq’s rentier economy is not limited to the mechanism for distributing oil revenues within the state, but extends to the limited outlets on which the country depends for exporting oil, which makes the stability of exports a key factor in the stability of the national economy, especially in light of the sensitive regional situation and current events that further complicate oil exports.
Risks of seaports
Economic researcher Hassanein Tahseen warns of the risks associated with the current outlets, stressing that Iraq has restricted itself to the current export outlets and does not have long-term strategic alternatives, while the options currently available remain temporary and insufficient to ensure the continuation of oil exports in a stable manner.
Tahseen added that exporting via Jordan or via the Turkish pipeline is not an effective solution, because it has limited capacity and does not meet the country’s economic needs.
He pointed out that Iraq has long needed to secure alternative export outlets, explaining that “the Aqaba pipeline project is one of the important solutions, but it was halted for political and populist reasons, which weakened the country’s ability to diversify its export routes.”
He believes that the most important project is to revive the Kirkuk-Banias line, which passes through Syrian territory, as it is the best route currently available, because it allows dealing with only one country and spares Iraq from having to depend on more than ten countries or pass through multiple straits and sea channels, thus providing a stable and direct route to the Mediterranean Sea.
Tahseen pointed out that the sensitive regional situation in the Middle East will make the upcoming economic challenges difficult, stressing that the war will not last long, but the next stage may be harsh on exports and the Iraqi economy, which calls for serious consideration of alternative options to ensure the stability of the national economy.
Rule of law: We will complete two-thirds within the framework if the Sudanese need it to secure a second term.
Diaa Al-Nasiri, a member of the State of Law Coalition, confirmed that the coalition will complete the two-thirds within the coordination framework if the current Prime Minister, Mohammed Shia Al-Sudani, needs it to finalize his nomination for a second term.
Al-Nasiri said on a television program: “If the Sudanese candidate gets a two-thirds majority, we are with him.”
The statement comes as no official statement has been issued by the framework announcing the withdrawal of Nouri al-Maliki’s candidacy, as the latter insists that the framework itself should withdraw, and that he will not back down.
A private source confirmed that understandings within the coordination framework to re-nominate Mr. Al-Sudani for a second term have been postponed for a few days, after it was planned to announce this at Monday’s meeting.
Al-Saadi: The new government may be formed after the Eid al-Fitr holiday.
Former MP Baqir al-Saadi confirmed on Tuesday that the formation of the next Iraqi government may take place after the Eid al-Fitr holiday.
Al-Saadi told Al-Maalomah, “Despite the current situation in the region, the aggression against Iran, and the repeated targeting of Popular Mobilization Forces units that resulted in martyrs and wounded, efforts to proceed with forming the government are ongoing and it is taking upon itself the management of these files and the endeavor to address the economic and financial crises.”
He added that “expectations indicate that after the Eid al-Fitr holiday, we may witness the formation of a new government, especially since all political forces have become aware of the seriousness of the situation and the need to join forces to resolve the outstanding issues.”
He explained that “the next two weeks could be crucial in finding clear paths to resolve the presidential issue, and then moving to the final stage of tasking the candidate of the largest bloc with forming the cabinet,” stressing that “political meetings in Baghdad are ongoing and may yield more positive results in the coming period.”
The ongoing regional war is putting pressure on the Iraqi economy.
Economic experts and specialists expect that the continuation of the regional war in the region will impose great and continuous pressure on the structure of the Iraqi economy and the movement of local markets, as the effects will be on prices, inflation rates and fluctuations in the purchasing power of citizens.
In this context, economist Walid Al-Akeeli believes that the continuation of this crisis may push inflation rates to higher levels, especially since Iraq relies on importing about seventy to eighty percent of basic commodities to secure its needs.
Shipping cost
Al-Akeeli explains to Al-Sabah that any disruption affecting the transport or energy sector or vital maritime routes such as the Strait of Hormuz will necessarily lead to an increase in shipping costs and boost domestic inflation, indicating that the rate of increase may reach from eight to twenty percent if the conflict lasts for a long time. He also noted that the rise in global oil prices may increase government revenues, but it will be reflected at the same time in the prices of fuel and goods locally, which will double the pressures on living standards.
Food security
Meanwhile, the Iraqi Ministry of Interior affirmed that food security is a "red line" that cannot be crossed, indicating that its monitoring and cyber units have been mobilized to regulate the market and counter rumors using advanced technologies. Ministry spokesperson, Colonel Abbas al-Bahadli, stated in a press interview: "The Ministry is responsible for regulating food security through the Directorate of Combating Organized Crime, in coordination with police commands throughout Iraq and in Baghdad, on both the Karkh and Rusafa sides." He explained that this work is being carried out in coordination with relevant government agencies, primarily the Ministries of Trade, Agriculture, and Health, as well as the Central Organization for Standardization and Quality Control. He added that mobile patrols are working to apprehend those hoarding food supplies and prevent the sale of expired goods or unregulated slaughter.
Inflation situation
For his part, economic expert Haider Al-Sheikh points out that regional conditions have caused inflation to persist, and unfortunately this has been accompanied by a rise in the prices of some goods and commodities by some market manipulators and unscrupulous individuals. He notes that despite this war-induced inflation, the demand for the dollar remains within moderate levels. This is because small traders and importers who relied on the dollar to purchase goods from abroad have had their activities affected by the cessation of international shipping and economic activity in the region. He also confirms that the exchange rate of the dollar against the dinar in the parallel market is currently stable and there are no indications of it rising in the coming days.
imported goods
As for the economic expert Ahmed Al-Ansari, he confirmed that the Iraqi citizen is the most affected as a result of the shortage of imported goods and the speculations practiced by some traders to exploit the current circumstances, especially with the cessation of part of the trade with Iran and the resulting scarcity of some food items.
Al-Ansari said that the government is currently working on supporting basic commodities to mitigate the effects of the crisis, but he stressed Iraq’s urgent need to diversify its economy, increase revenues, and focus on stabilizing oil exports to ensure that markets are protected from future shocks.
Budget financing
For his part, economic expert Ahmed Eid explained that the continuation of the regional crisis may lead to a decline in the flow of dollars to the local market due to Iraq’s heavy reliance on oil to finance the budget, which may raise the exchange rate and increase pressure on the purchasing power of citizens, especially those with fixed incomes such as employees, stressing the need for the government to take quick measures to control the market and secure basic commodities during this stage.
Strengthening policies
In conclusion, the experts state that the next stage requires careful monitoring of inflation and exchange rate indicators, along with the need to strengthen policies that ensure the diversification of income sources and improve the purchasing power of citizens to reduce the repercussions of the main regional crises during this stage.
A meeting is expected between NATO ambassadors and Gulf partners next week.
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Informed sources reported on Tuesday (March 10, 2026) that ambassadors of NATO member states will hold an important meeting with partners in the Gulf next week, as part of strengthening political and security coordination between the two sides.
Reuters, citing informed sources, reported that "the meeting aims to discuss the rapidly evolving regional developments in the Middle East, in addition to discussing defense cooperation and information exchange, as well as strengthening communication with the Gulf states, especially the members of the Gulf Cooperation Council."
This move comes amid escalating security tensions in the region and a growing need for greater international coordination on common threats.
Trump: The war with Iran is largely over and may end soon.
US President Donald Trump has said he is considering who could replace Iranian Supreme Leader Mojtaba Khamenei, adding that the Iranian war is largely over and may end soon .
Trump said in remarks monitored by Al-Sa’a Network that “the United States is far ahead of the initial timeframe for the conflict, which was estimated at 4 to 5 weeks,” noting that “Iran does not have a naval fleet, communications capabilities, or an effective air force .”
He pointed out that "the current stage may open the door to reducing operations if the Iranian leadership accepts the American conditions, foremost among them stopping attacks on American forces and abandoning efforts to develop military nuclear capabilities."
Warnings against using the central bank's cash reserves in the absence of stable revenues for the Iraqi economy.
Crisis management expert Ali Jabbar warned against using the Central Bank's cash reserves in the absence of stable revenues for the Iraqi economy, stressing that relying on them in such circumstances could lead to a gradual depletion that may turn into a burden that is difficult to compensate for in the future.
Jabbar told Al-Mirbad that the cash reserve is an important tool to confront economic crises and potential fluctuations that the economy may be exposed to, but he stressed the need to deal with it with balanced policies and extreme caution.
He pointed out that the central bank's high cash reserves are a positive thing, as they can provide cover for financing imports for a period that may extend to a year, which gives a degree of reassurance in times of crisis.
Jabbar explained that these reserves should be used as a temporary stabilization tool to address emergencies, and not as a permanent substitute for the real and stable revenues of the economy.
An economic researcher warns: Closing the Strait of Hormuz threatens Iraq's economy and affects oil exports and imports.
Economic researcher Alaa Al-Fahd warned of the major economic repercussions that Iraq may face if the Strait of Hormuz is closed, noting that the Iraqi economy depends mainly on oil exports, most of which pass through the ports of Basra to reach the strait.
Al-Fahd said that about 90% of Iraqi oil exports pass through the ports of Basra and then through the Strait of Hormuz, which means that any closure or tension in this vital maritime passage will have a direct and significant impact on the Iraqi economy and state revenues.
He explained that the impact is not limited to oil exports only, but also extends to imports and goods coming to Iraq, as the country relies heavily on imports to provide basic goods, most of which arrive through the ports of Basra via the Strait of Hormuz, which means that any disruption in shipping will affect the flow of basic foodstuffs and medicines to Iraqi markets.
He added that this situation could negatively affect economic and commercial activity in the country, especially since oil revenues represent the main source of funding for the general budget, stressing that the Iraqi economy is already suffering from a relative recession as a result of being affected by the global and regional situations, which could open the door to future economic crises if tensions continue.
Al-Fahd pointed out that the Iraqi government and the Central Bank of Iraq sent reassuring messages to the markets, stating that trade is still secure at this stage, by providing the necessary funds for foreign transfers through the Central Bank to ensure the continuation of imports and the provision of goods.
He explained that Iraq is simultaneously trying to avoid involvement in regional conflicts to avoid any direct economic repercussions, noting that the rise in oil prices may theoretically represent a positive aspect, but Iraq may not be able to benefit from it if the Strait is closed or production levels decline.
He added that a number of oil companies operating in the southern fields have reduced or halted some of their production activities as a result of the security situation and regional tensions, which may affect the volume of oil production and consequently the financing of the state's general budget in the coming period.
Political analyst: The Sudanese candidate is the most likely to win a second term after recent political developments.
Political analyst Haider Al-Humaidawi confirmed that Prime Minister Mohammed Shia Al-Sudani’s chances of renewing his term have become the highest at the present stage, in light of the recent political data and internal and external positions related to the file of the next government’s leadership.
Al-Humaidawi said that the political indicators circulating suggest that Al-Sudani has the best chance of leading the government again, especially after the messages that spoke of an American position that was not encouraging for the return of former Prime Minister Nouri Al-Maliki to the position, despite him being one of the most prominent competitors for the premiership.
He added that these developments also coincided with the clarification issued by the head of the Supreme Judicial Council, Faiq Zaidan, regarding the issue of the “largest bloc,” and the constitutional and political discussions it raised about the mechanisms for forming the next government.
Al-Humaidawi explained that there are other political factors within the coordination framework that enhance Al-Sudani’s chances, noting that some key forces within the coalition have expressed clear reservations about nominating Al-Maliki for the premiership.
He explained that the Sadiqun bloc and the Hikma movement expressed an unenthusiastic stance towards Maliki’s return to the premiership, which, according to his assessment, strengthens the chances of Sudani remaining in office during the next phase.
Al-Humaidawi pointed out that these political indicators make Al-Sudani, in his estimation, the closest candidate to lead the next government by a percentage of up to about 90%, especially in light of the efforts of the Coordination Framework forces to maintain the cohesion of the alliance and avoid entering into an early conflict over the position of Prime Minister.
He concluded by saying that current data suggests that al-Sudani may be "the man of the next phase," unless new political changes occur that reshuffle the cards within political alliances before the upcoming elections.
The rejection of al-Maliki's nomination tips the scales in favor of al-Sudani and opens the door to new political options.
Political analyst Omar Al-Nasser stressed that the clear rejection by the US administration and some political parties within the State Administration Coalition, as well as within the Coordination Framework forces, of the nomination of former Prime Minister Nouri Al-Maliki to head the next government, requires political forces to look at the current scene more realistically and to deal with it with political rationality that is appropriate to internal and regional developments.
Al-Nasser said that current data indicates that the current Prime Minister, Mohammed Shia Al-Sudani, has internal and international acceptance at this stage, especially after the recent developments in the region and the ongoing war with Iran, which makes it necessary to ease the political conditions that hinder the movement of the political system and prevent any temporary breakthrough of the existing crisis.
He added that what the head of the Supreme Judicial Council, Judge Faiq Zaidan, put forward clarified matters regarding the consolidation of the political process, noting that his proposal is unprecedented in clearly addressing the problem of interpreting Article (76) of the Constitution, and the legal and political controversy that accompanied it during previous election cycles.
Al-Nasser explained that Zaidan’s statement indicates a serious judicial trend towards correcting the course of the political process, by readjusting the mechanisms for interpreting the constitutional article related to assigning the largest bloc to form the government, and putting an end to the selective interpretations that led – as he described it – to the emergence of what he called “political innovations” in managing the government formation file, after the Federal Court sometimes resorted to legal and constitutional interpretations outside its powers, according to what the head of the Supreme Judicial Council put forward.
He explained that getting out of the current political deadlock could lead the coordination framework to two main options. The first is accepting the formation of a temporary emergency government headed by Mohammed Shia al-Sudani, in preparation for holding early elections that would restore balance to the political scene and open the way for the Sadrist movement to return to political participation as an important component in the Iraqi political equation.
The second option, according to Al-Nasser, is to abandon the principle of traditional political power-sharing and consensus, and move towards a presidential or semi-presidential system, which would contribute to strengthening administrative centralization and unifying the sources of political decision-making, ultimately leading to the consolidation of the foundations of good governance in the country.
He pointed out that the current stage requires bold political decisions that reorganize the political process and put an end to the deadlock that accompanied the formation of governments in recent years.
Trade Routes With Iran Set to Resume Across Kurdistan Region, Officials Say
The Kurdistan Region’s Import and Export Union said that trade routes with Iran will return to full operational status in the coming days.
The Kurdistan Region’s Import and Export Union announced Tuesday that all border crossings with Iran will reopen in the coming days, restoring trade routes that had been partially suspended amid regional tensions.
The statement from the union noted that the closures followed recent instability involving Iran, the United States, and Israel, with only the Bashmakh crossing remaining operational for several days. According to the communiqué, the Shushme crossing in Tawela reopened on March 8, 2026, followed by the Sayranban crossing on the evening of March 9.
Officials said that transit through the Bashmakh crossing currently includes roughly 500 trucks of cargo daily, a volume that is increasing. Most Iranian shipments consist of foodstuffs such as vegetables, fruit, dairy products, soft drinks, juices, chocolates, and biscuits, along with a range of other commodities that were routinely imported prior to the recent closures.
The union indicated that the Haji Omeran and Parvez Khan crossings are also scheduled to reopen in the coming days, signaling a return to full operational capacity at the Kurdistan-Iran border.
In its statement, the Import and Export Union emphasized the continuity of trade flows despite the temporary disruptions. “Trade activities and the movement of goods are resuming at multiple points along the border,” the union said, highlighting the gradual restoration of normal operations.
The Bashmakh crossing, located in the eastern part of the Kurdistan Region, has served as the primary conduit for Iranian goods during the recent closures. Union officials said that the steady flow of trucks and cargo through this crossing reflects both demand for Iranian imports and the logistical capacity of regional customs and transport authorities to manage high volumes efficiently.
The reopening of the Shushme and Sayranban crossings followed coordination between regional authorities and border management teams, the statement noted. Both crossings are strategically important for trade, facilitating the movement of perishable goods and other daily essentials. Local officials said that maintaining these supply chains is critical to stabilizing market availability across the region.
The union’s communiqué also underscored that the gradual resumption of border operations has been guided by safety and logistical considerations. “The reopening process is being carried out carefully to ensure smooth transit and the safety of all personnel involved in customs and border services,” it said.
Iranian shipments entering through the Kurdistan Region cover a broad range of consumer goods, reflecting established trade patterns that predated the temporary closures. Union officials highlighted that most shipments are part of regular commerce, including seasonal agricultural products and packaged foods widely consumed across the Region.
Preparations for reopening the Haji Omran and Parvez Khan crossings have reportedly been finalized, and regional authorities are coordinating security and customs arrangements to handle the expected influx of vehicles and cargo. The union indicated that both crossings will be operational within the coming days, completing the full reopening of Kurdistan-Iran trade corridors.
The partial closure of the crossings in recent days had prompted logistical adjustments for traders and transport companies, who relied on the Bashmakh crossing as the sole operational route. The union’s announcement signals a return to multi-point operations, which is expected to streamline trade and reduce delays at key border terminals.
Officials also noted that the gradual restoration of crossings is intended to support the flow of essential goods and prevent shortages of staple items in regional markets. The measure aligns with broader efforts to maintain supply chain continuity amid regional tensions affecting transportation networks.
In addition to food products, Iranian shipments include a variety of consumer items that were routinely imported before the temporary suspension of crossings. The union said that all logistics and customs procedures are being monitored to ensure compliance with regulatory requirements and to facilitate rapid clearance of goods.
The Import and Export Union’s statement did not provide a specific timetable for the reopening of Haji Omeran and Parvez Khan, but indicated that authorities expect both crossings to resume operations “in the coming days,” restoring normal trade activity along the Kurdistan-Iran border.
The reopening marks the first coordinated restoration of multiple border crossings since the temporary closures, signaling a return to established trade patterns and daily cross-border commerce.
Trade officials emphasized that the resumption of crossings will allow regional markets to access essential goods efficiently and maintain supply chain stability, while ensuring that the logistical and administrative capacities at each crossing are fully utilized.
The full reopening of Kurdistan-Iran border crossings is expected to support ongoing economic activity, facilitate the movement of goods, and restore normal transit conditions for traders and transport operators.
Bank deposits in Iraq declined as credit increased during 2025
The Central Bank of Iraq announced on Tuesday a decline in the growth of deposits and an increase in cash credit growth during the year 2025.
The bank stated, in a statistic seen by Shafaq News Agency, that total deposits at banks operating in Iraq decreased by 10.95% during the year 2025 to reach 111.165 trillion dinars, compared to 123.327 trillion dinars in the year 2024.
He added that central government deposits amounted to 36.497 trillion dinars, while public institutions' deposits amounted to 23.924 trillion dinars, and private sector deposits amounted to 50.644 trillion dinars.
The bank noted that the growth in credit volume increased by 3.07% during 2025 to reach 75.584 trillion dinars, compared to 2024 in which the credit volume reached 73.265 trillion dinars.
He explained that “the credit provided to the central government amounted to 26.271 trillion dinars, while the credit provided to public institutions amounted to 2.300 trillion dinars, while the credit provided to the private sector reached 47.013 trillion dinars.”
Iran demands security guarantees before any ceasefire agreement.
Iran’s Foreign Ministry on Tuesday stipulated that clear security guarantees are a prerequisite for any agreement to a ceasefire with the United States and Israel.
According to the Iranian newspaper Shargh, Iranian Deputy Foreign Minister Kazem Gharibabadi said that "any truce or end to the war must be accompanied by pledges not to repeat attacks on Iran," warning that "the absence of such guarantees makes talk of a ceasefire meaningless."
The Iranian official stressed that "his country was not the party that initiated any act of war," noting that "the missile attacks carried out by his country came within the framework of legitimate self-defense, based on the provisions of Article 51 of the United Nations Charter."
Gharibabadi revealed that "the past few days have witnessed active diplomatic efforts led by China, Russia and France, along with a number of regional countries, to mediate and bring the views of the concerned parties closer together."
China takes steps to contain regional tensions; Beijing's envoy embarks on a tour regarding the Strait of Hormuz.
China’s Foreign Ministry affirmed on Tuesday that maintaining security and stability in the Strait of Hormuz is in the common interest of the international community, given the tensions in the region.
Chinese Foreign Ministry spokesman Guo Jiakun said at a conference monitored by Shafaq News Agency that his country’s current priority is to help stop the military conflict and work to calm the situation.
He added that the Chinese special envoy for Middle East affairs is currently touring the region, as part of Beijing's diplomatic efforts to support stability and encourage dialogue between the parties involved.
He pointed to the importance of ensuring the security of navigation and the passage of oil through the Strait of Hormuz, given its vital role in global energy supplies, stressing the need for international cooperation to maintain its stability.
Earlier on Tuesday, US President Donald Trump threatened Iran with a strike "20 times worse" than it has received so far if it takes any action that would stop the flow of oil through the Strait of Hormuz.
This comes as the war between Iran on one side, and the United States and Israel on the other, enters its second week, after it turned from a direct confrontation between Tehran and Tel Aviv into an open regional clash whose repercussions have extended to Iraq, Lebanon, Syria and the Gulf, amid growing fears for energy security, navigation and stability in the region.
Disagreements over committee memberships prompt the Iraqi parliament to postpone its session.
The Iraqi parliament voted on Monday evening on the parliamentary conduct committee and the members of the legal committee, while postponing the completion of the vote on the remaining committees to next Wednesday’s session. A representative from the State of Law bloc explained that disagreements over the membership of some committees caused the session to be postponed.
A correspondent for Shafaq News Agency said that the Council held its twelfth session of the first legislative term of the first legislative year of the sixth electoral cycle, chaired by the Speaker of the Council, Hebat Al-Halbousi, and voted to form the Parliamentary Conduct Committee, headed by MP Faleh Al-Sari and with the membership of MPs Hanan Al-Fatlawi, Hussein Al-Batat, Muhammad Al-Karbouli, Habib Al-Halawi, Ahmed Mazhar, Shakhwan Abdullah, and Naji Al-Shammari.
Ahmed Mohammed Hussein Al-Mubarqa also took the constitutional oath to become a member of the House of Representatives, replacing Nouri Al-Maliki.
The council also voted on the members of the legal committee, which included MPs Sarah Latif Al-Dulaimi, Muhammad Nouri Al-Karbouli, Safouk Al-Azeer, Rikan Hamad, Ribwar Hadi, Farouk Muhammad, Iman Haider, Omar Kojar, Bahaa Al-Araji, Ahmed Kamel, Thaer Jassim, Hussein Hashem Al-Halawi, Murtada Al-Ibrahimi, Muhammad Al-Khafaji, Ali Saber Kamel, and Ibtisam Al-Hilali.
The Speaker of Parliament called on the heads of parliamentary blocs to expedite the selection of members of parliamentary committees in preparation for voting on them in Wednesday’s session, before deciding to adjourn the session until that date.
MP Ibtisam Al-Hilali, from the State of Law bloc, told Shafaq News Agency that the House of Representatives was supposed to vote during today's session on the membership of 26 parliamentary committees, but disagreements over the membership of some committees prevented this from being completed, so the vote was limited to the Legal Committee only, in addition to the Parliamentary Conduct Committee.
She added that Parliament is determined to complete the voting on the membership of the remaining committees in order to activate its oversight role and advance the legislative process, noting that there are more than 100 laws carried over from the previous session that still need to be reread, amended and voted on.
Al-Hilali confirmed that there is a trend to complete the voting on the remaining committees in next Wednesday’s session, with assurances that this file will be completed before the end of Ramadan.
Iran not seeking ceasefire: Parliament speaker
“The Zionist regime sees its shameful existence as a continuation of the cycle of 'war-negotiation-ceasefire and then war again' to consolidate its dominance. We will break this cycle,” Ghalibaf added.
ERBIL, Kurdistan Region of Iraq – Iranian parliament Speaker Mohammed Bagher Ghalibaf on Tuesday said that Iran is not looking for a ceasefire, as the US-Israeli war with Iran continues to throw the region into chaos.
“We are definitely not looking for a ceasefire; we believe that the aggressor should be punched in the mouth so that he learns a lesson so that he will never think of attacking our beloved Iran again.”
The US and Israel started targeting Iran in late February, killing Supreme Leader Ayatollah Ali Khamenei, and targeting the Islamic republic's leadership, institutions, and military capabilities. Iran has returned fire by targeting US interests across the Middle East, including American diplomatic missions and military bases.
The US-Israeli campaign marks the second aggression by the two countries against Iran in less that 12 months. Israel attacked Iran and killed several of its top leaders during what is now known as the 12-Day War. The June conflict saw the US get invovled on Israel's side in its final stages.
“The Zionist regime sees its shameful existence as a continuation of the cycle of 'war-negotiation-ceasefire and then war again' to consolidate its dominance. We will break this cycle,” Ghalibaf added.
Both attacks on Iran come during nuclear negotiations between Iran and the US.
Iranian Foreign Minister Abbas Araghchi told PBS News earlier on Tuesday that “I don't think talking with the Americans would be on our agenda anymore,” citing Tehran's “very bitter experience” in previous talks with Washington.
Ghalibaf warned on Saturday that: “As long as the presence of US bases in the region continue, the countries will not enjoy peace.”
“Iranian officials and people are united on this principle,” the parliament speaker added.
Whitkoff reveals why Washington rejected Mojtaba Khamenei
On Tuesday, the United States' special envoy to the Middle East, Steve Wittkopf, revealed the reasons for his country's rejection of Mojtaba Khamenei succeeding his father as Supreme Leader in Iran, noting that President Donald Trump's administration is waiting for notification from the Iranians to open a dialogue with it.
"If the new leader of Iran follows the same path as his father, this is a problem for President Trump," Witkoff said in a television interview monitored by Shafaq News Agency.
He pointed out that "Trump is ready for dialogue, but will it be fruitful with the Iranians or not?", stressing that "Trump has drawn a red line, which is that Iran cannot possess a nuclear weapon."
He added, "Let's see if the Iranians want to talk. We have almost completely destroyed their uranium enrichment capability."
Witkov denied that Russia had provided Iran with any intelligence on US military assets, while suggesting that he would visit Israel next week to discuss options for military action against Iran.
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JP Morgan: Iraq has the lowest oil storage capacity among Gulf countries
Data released by JPMorgan on Monday showed that Iraq has one of the lowest oil storage capacities among Gulf countries compared to other countries in the region.
According to the data, Saudi Arabia leads the Gulf countries in storage capacity, with a capacity of about 65 days in the event of redirecting exports and 36 days without redirection, which gives it great flexibility in managing oil supplies.
Next comes Qatar with a storage capacity of about 20 days, followed by the United Arab Emirates with a capacity of up to 19 days with the possibility of redirecting exports and 16 days without that, then Kuwait with a storage capacity of approximately 14 days.
In contrast, Iraq ranks last among the aforementioned countries with a storage capacity estimated at only about 6 days, reflecting the limited nature of its oil storage infrastructure compared to the rest of the Gulf countries.
These figures show a clear disparity in oil storage capacities among the countries of the region, with some countries having a wider infrastructure that allows them to keep larger quantities of oil for longer periods.
Liquidity crisis hits Iraq’s major state banks
and an alternative headline
"Security concerns" are driving Iraqis to withdraw their money from state-owned banks.
An informed source reported on Monday that state-owned banks in Iraq, particularly Rafidain Bank and Rasheed Bank, are suffering from a severe liquidity crisis and a shortage of cash, with a clear decline in the funds available within those banks.
The source told Shafaq News Agency that "citizens who have deposited money have been withdrawing their funds from government banks recently as a result of security concerns and developments in the region."
He added that these concerns stem from escalating regional tensions, particularly the war between the United States and Israel on one side, and Iran on the other, and the potential repercussions this could have on the security and economic situation in Iraq.
The source indicated that government banks are still suffering from problems resulting from administrative and legal violations in their work, as they have not witnessed serious steps to develop their banking systems in recent years, as they still rely heavily on paper procedures and traditional methods of work, far from adopting electronic systems and modern banking technologies.
According to him, the lack of efficiency and experience in the management of some government banks, especially Al-Rafidain and Al-Rasheed, along with the slow pace of modernization and development, contributed to their work remaining backward, which negatively affected the level of banking services and the citizens’ confidence in the government banking sector.
The source continued, saying that "some branches of government banks are asking customers to wait or come back later to receive their money in full, while some branches are providing part of the required amount and postponing the delivery of the rest."
This crisis comes amid economic conditions and financial pressures facing the relevant institutions and the government in general, which has directly affected a wide segment of citizens.
On February 28, the United States and Israel launched a series of raids on targets inside Iran, including the capital Tehran, resulting in significant damage and civilian casualties, in addition to the assassination of Iranian Supreme Leader Ali Khamenei and a number of Revolutionary Guard and Army commanders.
Iran responded to the "American-Israeli" attack, resulting in widespread repercussions in the countries of the region, including Iraq, Israel, Jordan, Kuwait, Bahrain, Qatar, the UAE and Saudi Arabia.
Iran: Countries that thought they would emerge unscathed from the war are "completely mistaken."
Tehran responded on Monday to recent statements by US President Donald Trump that "Iran's plan will change after the war," as well as to reports about a possible US attempt to occupy Iranian islands, including Kharg Island. Iranian Foreign Ministry spokesman Esmail Baghaei said at a press conference: "The will of the Iranian people is the standard, not the will of evil foreigners. Trump and others have commented on events in many parts of the world, from Canada to other countries, as if the entire planet were fertile land and governments were real estate companies, while countries are built on national sovereignty, the will of the people, and their right to self-determination."
He continued, "The borders of every country are the product of historical, social, and religious developments, and are in fact the essence of a nation's identity. For the Iranian people, the map of Iran represents everything that every Iranian is proud of and is ready to sacrifice their life to protect," according to the Iranian news agency IRNA.
Baghaei added: "Therefore, on the one hand, we must remember that Iran has always been the graveyard of foreign dreams and illusions, and on the other hand, countries must realize that Iran will protect its national identity." Its borders and territorial integrity, but at the same time, other countries that have shown indifference, or thought that if they stood idly by and watched this illegal process, they would emerge unscathed, are completely mistaken. What is happening jeopardizes all recognized international norms.”
He also emphasized that “the Iranian people know how to defend their country, and all international laws are now at risk because of what is happening in Iran,” noting that “efforts are currently focused on defending the country against the brutal attacks.”
The framework chooses the Sudanese Prime Minister for a second term.
I still want some other sources so I can get a better translation
According to a political source, the coordination framework is the appointment of Akhtar Mohammed Shia al-Sudani, head of the second division,
and according to the source, the announcement of this system over the hours القادمة.
and the discovery of several sources within the coordinating Ittar, following the signing of the agreement on the second term of Prime Minister Mohammed Shia Al-Sudani with the high support of the presidential leaders in the Ittar, including the President Ammar al-Hakim, leader of the Victory Coalition, Haider al-Abadi, leader of the Asaib Movement, Qais al-Khazzali, and Hadi al-Amri.
According to the sources, other personalities such as Abu Alaa al-Walaei Abdat have a positive position towards this option, in which they are the source of insights to attract promotion Nuri al-Maliki, the leader of the rule of law coalition, after weeks of internal and external pressure.
A source close to Al-Ittar said that some parties, such as Mohsen al-Mandlawi and Mam Hamudi, are trying to defend a weak stage or alternative, even if they fail to try to form a state coalition The law towards an alternative to ownership from among the rows, failed to look at the absence of a powerful leak that enjoys experience and widespread acceptance.
As requested earlier in the morning, the candidates of the agreements resigned (between the former governments) no contact after now and now they are deprived of the opportunity to “command only” agreed Source
Türkiye intercepts Iranian ballistic missile after it enters its airspace
Türkiye announced on Monday that it had intercepted a ballistic missile launched from Iran after it entered Turkish airspace, in the second such incident in days, amid escalating tensions in the region.
The Turkish Ministry of Defense said in a statement seen by Al-Sa’a that “the missile was neutralized by NATO air and missile defense systems deployed in the eastern Mediterranean.”
She added that "some of the missile debris fell in an empty area in Gaziantep province in the south of the country, without any injuries or human damage being recorded."
In a related context, Ankara revealed the deployment of 6 F-16 fighter jets along with air defense systems in the Turkish Republic of Northern Cyprus.
She stressed that these measures come within the framework of strengthening security measures in light of the ongoing military escalation in the Middle East.
Reuters: Trump is reviewing options today to control oil prices and maintain market stability.
Reuters, citing two sources familiar with the matter, reported that US President Donald Trump is expected to review a range of options today to control oil prices.
The sources explained that the options include “restricting oil exports, intervening in futures markets, and exemption from some federal taxes.”
For her part, the White House spokeswoman confirmed that “we have a strong plan in place to maintain the stability of the energy market.”
Secretary Rubio’s Call with Iraqi Prime Minister Mohammed Shiaa al-Sudani
The below is attributable to Principal Deputy Spokesperson Tommy Pigott:
Secretary Rubio spoke today with Iraqi Prime Minister Mohammed Shiaa al-Sudani. The Secretary strongly condemned terrorist attacks by Iran and Iran-aligned terrorist militia groups in Iraq, including in the Iraq Kurdistan Region. They reiterated the importance of the Iraqi government taking all possible measures to safeguard U.S. diplomatic personnel and facilities.
Rubio Condemns Terrorist Attacks in Iraq in Call with Iraqi Prime Minister
this is a WSJ article but I don't have a subscription
Secretary of State Marco Rubio spoke with Iraqi Prime Minister Mohammed Shia al-Sudani and condemned terrorist attacks in Iraq by Iran and Iran-backed militia groups, the State Department said Monday. They also spoke about the importance of the Iraqi government safeguarding U.S. diplomatic personnel and facilities, the State Department said. Iraqi militias have attempted dozens of small-scale attacks in a show of support for Tehran since the conflict began.
Earlier on Monday, Sudani congratulated the newly appointed Iranian leader, Mojtaba Khamenei, in a post on social media. The prime minister said Iraq stood in solidarity with Iran.
Sudani affirms to America Iraq's commitment to protecting diplomatic missions, embassies, and consulates on its territory
During a phone call with US Secretary of State Marco Rubio, Prime Minister Mohammed Shia al-Sudani affirmed Iraq’s commitment to protecting diplomatic missions, embassies, and consulates on its territory.
His media office stated in a statement received by Al-Mirbad that “Al-Sudani received a telephone call from US Secretary of State Marco Rubio, during which they reviewed the situation in the region and discussed the latest regional developments.”
He added, “During the call, the Prime Minister affirmed Iraq’s commitment to protecting the missions, embassies, and consulates represented on its territory, which is at the core of the duties and responsibilities of our armed forces in all their formations and branches. He emphasized the importance of ensuring that Iraqi airspace, land, and waters are not used in any military action targeting neighboring countries or the region. He stressed Iraq’s commitment, with all its authorities, popular, political, and national forces, to its principled position of not engaging in military actions, just as it rejects being drawn into ongoing conflicts and rejects any violation of its airspace by any party whatsoever.”
The statement noted that "the call included bilateral discussions on files of common interest, and a discussion on resuming work and operating the Iraqi oil pipeline for export through Turkish territory."
