International oil firms halt production in Iraq’s Kurdistan amid US-Iran escalation
The move follows the deaths of two US service members in an Iranian attack on Jordan.
International oil companies operating in the Kurdistan Region of Iraq have decided to pause production effective immediately, Iraqi officials and regional industry sources have confirmed to Al-Monitor. The sources, speaking on condition of strict anonymity, said the decision was due to escalating violence between Iran and the United States.
Two US service members were killed and one remains missing after Iranian ballistic missile and drone attacks in Iraq’s neighbor, Jordan, on Friday, US Central Command confirmed.
Western oil fields have been targeted by Iran and its allied Shiite militias in the past. The decision came as Iraq’s prime minister, Ali al-Zaidi, was continuing his first official trip to the United States. Iraq has struck dozens of deals, ranging from actual contracts to memorandums of understanding with American companies during the visit that kicked off this week. Most of the deals are in the oil sector. A key demand from the Trump administration is for Baghdad to provide security guarantees for US companies operating inside Iraq.
In March, Texas-based HKN was forced to halt production after an Iran-backed group, Kataib Hezbollah, struck the group’s field in the Sarsang area in Dohuk province.
