International oil companies operating in Iraq's Kurdistan Region have suspended production effective immediately, according to Iraqi officials and regional industry sources. This decision is reportedly driven by the escalating tensions between the United States and Iran.
The sources, who spoke on condition of anonymity, indicated that the ongoing violence, including recent Iranian ballistic missile and drone attacks that resulted in the deaths of two U.S. service members in neighboring Jordan, has prompted this precautionary measure. Western oil fields have previously been targets of Iran and its affiliated Shiite militias.
This development coincides with Iraqi Prime Minister Ali al-Zaidi's first official visit to the United States. During the trip, Iraq has secured numerous agreements, ranging from formal contracts to memorandums of understanding, predominantly in the oil sector, with American companies. A significant point of discussion with the Trump administration has been Baghdad's commitment to providing security assurances for U.S. firms operating within Iraq.
The risk to operations was highlighted in March when Texas-based HKN was compelled to cease production following an attack on its field in the Sarsang area of Dohuk province, attributed to the Iran-backed Kataib Hezbollah group.
