International oil production in Iraq's Kurdistan region halted as escalating conflict between the US and Iran forced three major operators to suspend roughly 125,000 barrels per day, approximately 45% of the region's previous output. Norway's DNO, UK-based Gulf Keystone Petroleum, and US firm HKN Energy stopped operations following missile strikes linked to the rising geopolitical tensions.
DNO announced on February 28, 2026, it would suspend activity due to worsening security. Gulf Keystone shut down its Shaikan field, which had produced about 41,500 barrels daily. Meanwhile, HKN Energy ceased production at both Atrush and Sarsang sites. Alongside these Kurdistan suspensions, Iraq also fully paused crude output from Kirkuk, averaging 220,000 barrels per day prior to the halt, to reduce risks from regional military threats. Combined, these actions removed an estimated 345,000 barrels daily from the global supply within days.
By June 2026, Iraqi authorities instructed companies to resume operations in Kurdistan, signaling efforts to restore production. Some firms had already received restart directives by March 2026. This disruption in crude supply contributed to uncertainty in global energy markets amid ongoing US-Iran hostilities.
