Stabilization of Global Oil Markets Revives Iraqi Budget Hopes

Global oil markets recorded remarkable stability following the announcement of the regional ceasefire and the decline of threats to cut off Strait of Hormuz supplies. This stability represents a lifeline for Iraq's 2026 financial budget, which relies on oil revenues for over 90%. The Iraqi Ministry of Finance plans to invest this relative price stability to fund stalled infrastructure projects and provide necessary liquidity for employee salaries and social welfare. Economic experts hope the government will move to establish a sovereign fund protecting vulnerable classes from future price shocks if the conflict renews.