Kurdistan region suffers heavy losses from regional conflict

Iraq’s semi-autonomous Kurdistan region has faced significant instability and economic damage due to the ongoing conflict involving the United States, Israel, and Iran. Since February, the region has been targeted more than 1,000 times by missiles and drones, launched either directly from Iran or by militias within Iraq.

Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani stated that the region has ‘paid a heavy price,’ noting casualties and damage to infrastructure, including military sites, energy facilities, and civilian areas. The security situation has led to a 70 percent decrease in trade across the region.

Economic losses incurred up to April are estimated at 1.5 trillion Iraqi dinars (approximately $1.14 billion). These losses impact the oil and gas sectors, investment, and general business movement, exacerbating an existing financial crisis and disputes with the federal government in Baghdad regarding revenue and state employee salaries.