Erbil, Iraq – Iraq’s semi-autonomous Kurdish region has been severely affected by the ongoing United States-Israel war on Iran over the past five months. Despite the Kurdistan Regional Government's (KRG) efforts to remain neutral and prevent attacks on Iran from its territory, the conflict has caused substantial economic and security repercussions.

The KRG reports that 70 percent of its trade has been cut due to the regional conflict. Peshawa Hawramani, spokesman for the KRG, told Al Jazeera that losses inflicted on the Kurdistan region up to April amount to approximately one trillion and 500 billion Iraqi dinars ($1.14 billion). These figures have been submitted to the Iraqi government.

Security concerns persist as armed groups operating outside the law continue shelling the region. Yawar, an Iraqi official, stated that these groups do not follow the orders of the commander-in-chief of the Iraqi Armed Forces, creating ongoing security problems for Kurdistan. Most bombing operations reportedly originate from the Nineveh Plains and areas near Kirkuk and Salah al-Din. Both the KRG and the Iraqi government lack comprehensive air defense systems to counter these attacks.

Additionally, Iraq’s Ministry of Oil has declared a case of force majeure on all oilfields developed by foreign companies. This move follows disruptions to navigation through the Strait of Hormuz, which have halted most of Iraq’s crude oil exports.

In related developments, a former Iraqi provincial governor was arrested amid a continuing graft crackdown.

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