Iraq’s semi-autonomous Kurdish region suffers as US-Iran war drags on

What Happened

The Kurdistan Regional Government (KRG) claims its semi-autonomous region in northern Iraq has been severely impacted since February by an ongoing war between the United States-Israel and Iran. KRG Prime Minister Masrour Barzani told Al Jazeera the region has been targeted over 1,000 times by missiles and drones launched directly from Iran or by Iran-backed Iraqi militias, causing casualties, infrastructure damage, and a 70 percent decline in trade. KRG spokesman Peshawa Hawramani estimated economic losses at 1.5 trillion Iraqi dinars ($1.14bn) up to April, with attacks hitting military sites, energy facilities, headquarters of Iranian Kurdish opposition parties, and civilian areas. Iraqi Kurdistan was drawn into the conflict after U.S.-Israel strikes on Iran triggered retaliatory attacks by Tehran-linked groups on U.S. assets in the region. Concurrently, Iraq's Oil Ministry declared force majeure on all foreign-operated oilfields, citing disruptions to navigation through the Strait of Hormuz that halted most crude exports.

Key Actors

Why It Matters

The spillover of the U.S.-Iran conflict into Iraqi Kurdistan exacerbates the region's existing financial crisis and territorial disputes with Baghdad, while exposing the Iraqi central government's inability to restrain Iran-aligned militias operating outside state authority. The attacks undermine Iraqi sovereignty and threaten broader economic stability, as Hormuz disruptions force a shutdown of foreign-operated oilfields, risking compensation disputes and lost revenue.

Watch For

Monitor for any action by the Iraqi federal government against the named armed factions, potential cross-border ground operations by Iranian Kurdish groups based in the KRG region, further disruptions to Strait of Hormuz shipping and oil exports, and KRG compensation claims or negotiations with Baghdad.