By Alexander Miller, consultant in energy markets. Eurasia Business News, July 18, 2025. Article n°1634.
Drone attacks have significantly disrupted oil production in Iraq’s semi-autonomous Kurdish region, beginning around July 14. Multiple oil fields, operated by Western companies such as the Norwegian firm DNO ASA and U.S. firms HKN Energy and Hunt Oil, have been targeted with armed drones. These attacks have caused damage to facilities and forced the suspension of operations at several sites, leading to a combined reduction of approximately 140,000 to 200,000 barrels per day — over half of the region’s usual output of around 280,000 barrels daily.
The strikes appear politically motivated, linked to escalating regional tensions following the 12-day Israel-Iran conflict, and are widely attributed—though not officially claimed—to Iran-backed militias operating within Iraq. Kurdish authorities have accused such militias of seeking to destabilize the region and disrupt its economy, while Baghdad has been urged to take stronger protective measures for Kurdish infrastructure.
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The disruption has not only halted critical production but also contributed to a rise in global oil prices, with Brent crude jumping by $1 per barrel in response to the increased supply risk in Iraqi Kurdistan. Market analysts see these attacks as an effort to exert pressure on the Kurdistan Regional Government in ongoing negotiations with Baghdad over energy contracts and salary payments for public employees.
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© Copyright 2025 – Eurasia Business News. Article no. 1634.
Eurasia Business News 