US energy company HKN Energy has suspended all operations in Iraq’s Kurdistan region due to escalating tensions between the United States and Iran. The decision was reported by Kurdish media outlet Rudaw, citing a company official. It came only days after HKN signed an agreement with Iraq’s oil ministry to develop the Hamrin oil field in Salahuddin province. The deal, signed on July 9, aimed to raise daily oil output to 140,000 barrels and gas production to 40 million cubic feet.

The suspension follows a series of drone attacks in Erbil and Sulaymaniyah provinces that killed nine members of an Iranian Kurdish opposition group. The deteriorating security situation prompted the company to halt its activities. Earlier, UAE-based Dana Gas had also temporarily suspended operations at the Khor Mor gas field near Sulaymaniyah, citing credible threats.

The back-to-back suspensions highlight growing instability in northern Iraq’s energy sector as regional tensions intensify.