ERBIL, Kurdistan Region of Iraq - HKN Energy, a US-based energy company with substantial investments in Iraq and the Kurdistan Region, is shutting down all operations in the country due to “escalations tensions” in the region, the Kurdistan Region’s natural resources ministry told The New Region on Saturday.

“Due to escalating tensions, HKN Energy has suspended all its operations in Iraq and the Kurdistan Region,” the Region’s natural resources ministry said, asserting that the halt will be temporary.

The suspension came a day after Iraqi Prime Minister Ali al-Zaidi met with HKN Energy’s executives during his ongoing visit to Washington, discussing the prospect of more investments.

In late June, Iraq awarded the development contract of the Hamrin oil field to HKN, granting it opportunities to invest further into the country’s oil sector.

The company also operates the Sarsang oil field in the Kurdistan Region’s Duhok province - a frequent target for Iran-backed militias seeking to destabilize Kurdistan’s oil sector.

HKN Energy is a major oil player in the Kurdistan Region, with Prime Minister Masrour Barzani in May 2025 presiding over the signing of two major agreements in the energy sector between the KRG’s natural resources ministry and HKN Energy and WesternZagros in Washington, DC. The deals hold a combined value of $110 billion and aim to boost the Kurdistan Region’s energy sector.

The Kurdistan Region has come under renewed attacks by Iran and its proxies in Iraq since hostilities resumed between Tehran and Washington.

Erbil came under a spate of drone attacks on Friday night, with the US-led global coalition downing at least eight drones across the city’s skies, mere days after another eight drones targeted the city late Wednesday.

Pro-Iran Iraqi militias similarly targeted the Region's energy infrastructure and military bases extensively during Iran’s previous conflicts with the US.