Oil flows are expected to begin at 10 a.m. , according to state media citing Oil Minister Hayan Abdel-Ghani. The agreement includes provisions to enhance security around oilfields and ensure continuity of export operations, Kurdish authorities said.

KRG Prime Minister Masrour Barzani said the region would allow crude exports through its pipeline network “at the earliest possible time” given the exceptional circumstances facing the country. He added that talks with Baghdad would continue to lift trade restrictions and provide guarantees to international oil companies to safely resume production.

Barzani also said he had instructed regional officials to facilitate exports following discussions with U.S. envoy Tom Barrack, emphasising the need to prioritise economic stability for citizens.

Tensions between Baghdad and the KRG had escalated in recent days, with Kurdish authorities accusing the federal government of failing to address security and economic challenges affecting the oil sector. Baghdad, in turn, said the KRG had refused to allow use of a regional pipeline as an alternative export route, alleging the imposition of arbitrary conditions.

The dispute unfolded against the backdrop of wider regional instability, including disruptions to crude flows linked to the Iran conflict.

Iraq’s presidency called on both sides to cooperate to restart exports, while parliament issued a seven-point directive urging the government to secure alternative outlets for crude to mitigate economic damage under current security conditions.

The parliamentary intervention followed consultations with the oil ministry to assess the impact of halted exports after the closure of the Strait of Hormuz, a key global energy transit chokepoint, underscoring the urgency of restoring flows through northern export routes.

The escalation comes in the third week of the U.S.-Israeli conflict with Iran, which has left at least 2,000 people dead and disrupted critical energy flows through the Strait of Hormuz.

Gulf targets hitIranian strikes hit oil and transport infrastructure in the UAE, where a drone struck a facility in Fujairah for a second consecutive day and debris from an intercepted missile fell in Abu Dhabi, killing one person, authorities said.

Rockets and drones also targeted the U.S. embassy in Baghdad in what Iraqi security sources described as the most intense such assault since the conflict began, though U.S. officials said no injuries were reported.Iran’s attacks have also extended to other Gulf states, including Qatar, Saudi Arabia, Bahrain and Kuwait, signalling a broader regional response.

Trump remarks and intelligence warnings.Trump said the scope of Iran’s retaliation had come as a surprise. “They weren’t supposed to go after all these other countries in the Middle East.

Nobody expected that. We were shocked,” he said.However, U.S. officials and sources familiar with intelligence assessments said the president had been warned before the conflict that strikes on Iran could provoke retaliatory attacks against Gulf allies, particularly if Tehran perceived them as supporting U.S. operations.

There was no pause in hostilities, with Iran launching overnight missile strikes on Israel, demonstrating continued long-range strike capability despite sustained bombardment.

Israel said it carried out a fresh wave of strikes on targets in Tehran and positions linked to Hezbollah in Beirut, and signalled plans for several more weeks of military operations.

Energy and market impactThe widening conflict has kept the Strait of Hormuz largely constrained, as U.S. allies declined to join efforts to secure the waterway.

The disruption has raised concerns over energy supplies, pushed up oil prices and intensified fears of inflation globally.