ERBIL, Kurdistan Region of Iraq - Kurdistan Region PM Masrour Barzani on Monday received Charge d’Affaires at the US Embassy in Iraq Steven Fagin, with the pair discussing increasing oil production in the Kurdistan Region and developing cooperation between Erbil and Baghdad.

The pair “agreed on the importance of increasing oil production in the Kurdistan Region and developing cooperation and coordination between the Kurdistan Region and the federal government in order to improve the financial situation and increase Iraqi revenue within the framework of promoting trade,” read a statement from the premier’s office.

Iraq’s economy has taken a major blow with the closure of the vital Strait of Hormuz by Iran, causing a sharp drop in the country’s oil exportation capacity.

The regional turmoil has forced Iraq to explore northern routes in a scramble to sell its oil, such as Turkey’s Ceyhan port. The conflict has also compelled Baghdad to explore land routes westward through Syria.

“Both sides condemned the attacks on the Kurdistan Region and stressed the importance of maintaining peace and stability in the Kurdistan Region,” the statement added.

The Kurdistan Region has come under repeated drone and missile attacks since the US-Iran war started in late February. Sulaimani province was targeted with five missiles on three different locations in the early hours of Monday.

The attacks have largely targeted US interests, Iranian opposition groups, and energy infrastructure.

The Kurdistan Region has long insisted upon its neutrality in the broader regional conflict and repeatedly condemned Iranian strikes.