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Iraq’s Kurdistan Works to Establish Two Oil Firms as Erbil-Baghdad Tensions Rise

A picture shows a view of the area around the citadel of Erbil, the capital of the autonomous Kurdish region of northern Iraq, as dust engulfs the sector on May 24, 2022. (AFP)
A picture shows a view of the area around the citadel of Erbil, the capital of the autonomous Kurdish region of northern Iraq, as dust engulfs the sector on May 24, 2022. (AFP)
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Iraq’s Kurdistan Works to Establish Two Oil Firms as Erbil-Baghdad Tensions Rise

A picture shows a view of the area around the citadel of Erbil, the capital of the autonomous Kurdish region of northern Iraq, as dust engulfs the sector on May 24, 2022. (AFP)
A picture shows a view of the area around the citadel of Erbil, the capital of the autonomous Kurdish region of northern Iraq, as dust engulfs the sector on May 24, 2022. (AFP)

Iraq's Kurdistan Regional Government (KRG) is working to establish two oil firms, the latest move in the battle between Erbil and Baghdad to control the oil sector in the semi-autonomous region.

The KRG's new oil firm KROC would specialize in oil exploration, while the second - KOMO - would focus on oil exports and marketing from the semi-autonomous region, a spokesperson said in a statement on Friday.

The regional government has presented the idea and discussed it with the federal government in Baghdad recently, the KRG spokesperson said in a statement.

The statement follows months of disputes between Erbil and Baghdad after a February federal court ruling that deemed the legal foundations of the Kurdistan region's oil and gas sector unconstitutional.

The oil ministry in Baghdad has since made fresh attempts to control revenue from the Kurdistan region, including summoning seven firms operating there to a commercial court on May 19. The firms were Addax, DNO, Genel, Gulf Keystone, HKN, Shamaran and WesternZagros.

The commercial court sitting has been postponed twice as some of the representation for these international oil firms did not have power of attorney, several sources told Reuters. The court session is due to resume on Monday, June 20.

As well as announcing plans to establish its own oil company in the Kurdistan region, the Iraqi oil ministry has ordered international lead contractors and subcontractors through Basrah Oil (BOC) and Iraq's national oil firm (Inoc) to pledge not to work on contracts or projects there.

Through letters sent on June 7 and 12, the firms were given three months to terminate existing contracts or projects in the KRG oil sector or face being blacklisted, according to two sources familiar with the matter.

The oil ministry is using two law firms - Vincent and Elkins and Cleary Gottlieb Steen and Hamilton - to help with gaining control of the KRG oil sector, according to two sources. Both firms have declined to comment.

The KRG has repeatedly rejected the federal court ruling. On June 5, the KRG's ministry of natural resources filed a civil suit against the minister of oil in Baghdad, Ihsan Ismael, for sending emails and letters to intimidate oil firms operating in the Kurdistan region and for interfering with the contractual rights of these firms and the KRG, according to a June 13 statement.

Also on June 5, the Erbil court of investigation ruled that the commercial court sessions against international oil firms must be brought to the Erbil court.

There have been years of attempts by the federal government to bring KRG revenues under its control, including local court rulings and threats of international arbitration.

The implications of the latest dispute are not fully clear as more than eight months since elections in Iraq, the formation of a government is still underway.

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Arab World

Lebanon Says Two Killed in Israeli Strike on Palestinian Refugee Camp

22 January 2026, Lebanon, Qnarit: People inspect the damage of a building that was destroyed by an Israeli air raid on the southern Lebanese village of Qnarit. (dpa)
22 January 2026, Lebanon, Qnarit: People inspect the damage of a building that was destroyed by an Israeli air raid on the southern Lebanese village of Qnarit. (dpa)
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Lebanon Says Two Killed in Israeli Strike on Palestinian Refugee Camp

22 January 2026, Lebanon, Qnarit: People inspect the damage of a building that was destroyed by an Israeli air raid on the southern Lebanese village of Qnarit. (dpa)
22 January 2026, Lebanon, Qnarit: People inspect the damage of a building that was destroyed by an Israeli air raid on the southern Lebanese village of Qnarit. (dpa)

Lebanon said an Israeli strike on the country's largest Palestinian refugee camp killed two people on Friday, with Israel's army saying it had targeted the Palestinian group Hamas. 

The official National News Agency said "an Israeli drone" targeted a neighborhood of the Ain al-Hilweh camp, which is located on the outskirts of the southern city of Sidon. 

Lebanon's health ministry said two people were killed in the raid. The NNA had earlier reported one dead and an unspecified number of wounded. 

An AFP correspondent saw smoke rising from a building in the densely populated camp as ambulances headed to the scene. 

The Israeli army said in a statement that its forces "struck a Hamas command center from which terrorists operated", calling activity there "a violation of the ceasefire understandings between Israel and Lebanon" and a threat to Israel. 

The Israeli military "is operating against the entrenchment" of the Palestinian group in Lebanon and will "continue to act decisively against Hamas terrorists wherever they operate", it added. 

Israel has kept up regular strikes on Lebanon despite a November 2024 ceasefire that sought to halt more than a year of hostilities with Hezbollah. 

Israel has also struck targets belonging to Hezbollah's Palestinian ally Hamas, including in a raid on Ain al-Hilweh last November that killed 13 people. 

The UN rights office had said 11 children were killed in that strike, which Israel said targeted a Hamas training compound, though the group denied it had military installations in Palestinian camps in Lebanon. 

In October 2023, Hezbollah began launching rockets at Israel in support of Hamas at the outset of the Gaza war, triggering hostilities that culminated in two months of all-out war between Israel and the Iran-backed Lebanese group. 

On Sunday, Lebanon said an Israeli strike near the Syrian border in the country's east killed four people, as Israel said it targeted operatives from Palestinian group Islamic Jihad. 

Arab World

UN Says It Risks Halting Somalia Aid Due to Funding Cuts 

A Somali trader marks watermelons for sale at an open-air grocery market as Muslims start the fasting month of Ramadan, the holiest month in the Islamic calendar, within Bakara market in Mogadishu, Somalia, February 18, 2026. (Reuters)
A Somali trader marks watermelons for sale at an open-air grocery market as Muslims start the fasting month of Ramadan, the holiest month in the Islamic calendar, within Bakara market in Mogadishu, Somalia, February 18, 2026. (Reuters)
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UN Says It Risks Halting Somalia Aid Due to Funding Cuts 

A Somali trader marks watermelons for sale at an open-air grocery market as Muslims start the fasting month of Ramadan, the holiest month in the Islamic calendar, within Bakara market in Mogadishu, Somalia, February 18, 2026. (Reuters)
A Somali trader marks watermelons for sale at an open-air grocery market as Muslims start the fasting month of Ramadan, the holiest month in the Islamic calendar, within Bakara market in Mogadishu, Somalia, February 18, 2026. (Reuters)

The UN's World Food Program (WFP) warned Friday it would have to stop humanitarian assistance in Somalia by April if it did not receive new funding.

The Rome-based agency said it had already been forced to reduce the number of people receiving emergency food assistance from 2.2 million in early 2025 to just over 600,000 today.

"Without immediate funding, WFP will be forced to halt humanitarian assistance by April," it said in a statement.

In early January, the United States suspended aid to Somalia over reports of theft and government interference, following the destruction of a US-funded WFP warehouse in the capital Mogadishu's port.

The US announced a resumption of WFP food distribution on January 29.

However, all UN agencies have warned of serious funding shortfalls since Washington began slashing aid across the world following President Donald Trump's return to the White House last year.

"The situation is deteriorating at an alarming rate," said Ross Smith, WFP Director of Emergency Preparedness and Response, in Friday's statement.

"Families have lost everything, and many are already being pushed to the brink. Without immediate emergency food support, conditions will worsen quickly.

"We are at the cusp of a decisive moment; without urgent action, we may be unable to reach the most vulnerable in time, most of them women and children."

Some 4.4 million people in Somalia are facing crisis-levels of food insecurity, according to the WFP, the largest humanitarian agency in the country.

The Horn of Africa country has been plagued by conflict and also suffered two consecutive failed rainy seasons.

Arab World

Hamas Says Path for Gaza Must Begin with End to ‘Aggression’ 

Makeshift tents of displaced Palestinian families among the ruins of their homes at sunset during the holy month of Ramadan in Jabaliya northern Gaza Strip on, 19 February 2026. (EPA)
Makeshift tents of displaced Palestinian families among the ruins of their homes at sunset during the holy month of Ramadan in Jabaliya northern Gaza Strip on, 19 February 2026. (EPA)
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Hamas Says Path for Gaza Must Begin with End to ‘Aggression’ 

Makeshift tents of displaced Palestinian families among the ruins of their homes at sunset during the holy month of Ramadan in Jabaliya northern Gaza Strip on, 19 February 2026. (EPA)
Makeshift tents of displaced Palestinian families among the ruins of their homes at sunset during the holy month of Ramadan in Jabaliya northern Gaza Strip on, 19 February 2026. (EPA)

Discussions on Gaza's future must begin with a total halt to Israeli "aggression", the Palestinian movement Hamas said after US President Donald Trump's Board of Peace met for the first time.

"Any political process or any arrangement under discussion concerning the Gaza Strip and the future of our Palestinian people must start with the total halt of aggression, the lifting of the blockade, and the guarantee of our people's legitimate national rights, first and foremost their right to freedom and self-determination," Hamas said in a statement Thursday.

Trump's board met for its inaugural session in Washington on Thursday, with a number of countries pledging money and personnel to rebuild the Palestinian territory, more than four months into a fragile ceasefire between Israel and Hamas.

Israeli Prime Minister Benjamin Netanyahu has insisted however that Hamas must disarm before any reconstruction begins.

"We agreed with our ally the US that there will be no reconstruction of Gaza before the demilitarization of Gaza," Netanyahu said.

The Israeli leader did not attend the Washington meeting but was represented by his foreign minister Gideon Saar.

Trump said several countries had pledged more than seven billion dollars to rebuild the territory.

Muslim-majority Indonesia will take a deputy commander role in a nascent International Stabilization Force, the unit's American chief Major General Jasper Jeffers said.

Trump, whose plan for Gaza was endorsed by the UN Security Council in November, also said five countries had committed to providing troops, including Morocco, Kazakhstan, Kosovo and Albania.