Oil Companies Pause Production in Iraq’s Kurdistan Region as US–Iran Tensions Rise

com reported. Iraqi officials and regional industry sources told the outlet that the decision stemmed from 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 Jordan on Friday, US Central Command confirmed.

Western oil fields have faced targeting by Iran and allied Shiite militias in prior incidents. The production halt came while Iraq's prime minister, Ali al-Zaidi, continued his first official trip to the United States. During the visit that began this week, Iraq struck dozens of deals, including contracts and memorandums of understanding, with American companies.

Most of those agreements cover the oil sector. A key demand from the Trump administration is for Baghdad to provide security guarantees for US companies operating inside Iraq, al-monitor.com reported. In March, Texas-based HKN halted production after an Iran-backed group, Kataib Hezbollah, struck its field in the Sarsang area of Dohuk province.