Who really controls Kurdistan’s gas? The Dana Gas deal, the KRG’s silence and the hidden cost of selling energy to Iraq

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By Dr. Pshtiwan Faraj | Kurdish Policy Analysis      A $2.239 billion arbitration settlement, a contract running until 2049, expanded rights for Pearl Petroleum and a new battle over gas sales to Baghdad are raising uncomfortable questions about who ultimately controls Kurdistan’s most strategic natural resource. The latest dispute over Khor Mor gas is exposing a much deeper problem in the Kurdistan Region’s energy sector: the public still does not appear to have a clear picture of who controls the region’s gas, who is authorized to sell it, and how much of its future value has already been committed to private companies. At the center of the controversy is Pearl Petroleum, the consortium led by Dana Gas and Crescent Petroleum, and a settlement agreement reached with the Kurdistan Regional Government (KRG) on August 30, 2017. Kurdistan Parliament member Kawa Sheikh Ali has now sharply criticized that agreement, asking why a government would effectively commit its natural ...

Iran-U.S. War pauses and guess what is next


By Dr. Pshtiwan Faraj | Kurdish Policy Analysis
 

A fragile pause between Washington and Tehran has eased immediate fears of escalation, but maritime tensions in the Strait of Hormuz, regional proxy conflicts, and Yemen's "siege for a siege" strategy suggest the broader Middle East crisis is far from over.

Iran-U.S. War Pauses, But Regional Tensions Continue to Escalate

For the first time in nearly two weeks, direct military exchanges between the United States and Iran appear to have entered a temporary pause, offering a brief respite after one of the most dangerous confrontations between Washington and Tehran in years. Yet despite the halt in strikes, the wider regional crisis continues to evolve, with new flashpoints emerging in the Strait of Hormuz, Iraq, Saudi Arabia, and Yemen.

Rather than signaling the end of hostilities, the pause increasingly resembles a tactical intermission. Both governments continue to maintain military readiness while using diplomacy to test each other's intentions. At the same time, proxy conflicts and maritime confrontations continue to threaten regional security and global energy markets.

A Reciprocal Pause in Direct Fighting

The United States ended its intensive two-week bombing campaign against Iranian targets on Friday evening, with no additional strikes confirmed throughout the weekend.

Iran responded by suspending its retaliatory military operations after observing that Washington had refrained from conducting attacks for several consecutive days.

Iranian Army spokesman Mohammad Akraminia stated that because Tehran's military strategy had been primarily retaliatory, Iran likewise halted operations once American strikes stopped. A senior Iranian official told Reuters that Tehran would continue observing the pause as long as Washington maintained it, although Iranian officials remained skeptical, believing the suspension may simply be tactical rather than representing a genuine shift in U.S. policy.

Meanwhile, U.S. Ambassador to the United Nations Mike Waltz stated that President Donald Trump had deliberately paused military operations to create diplomatic space.

However, Iran's Foreign Ministry rejected suggestions that negotiations had resumed. Foreign Ministry spokesman Esmail Baghaei emphasized that Tehran had not requested renewed talks with Washington and accused the United States of attempting to justify what he described as repeated violations of international law.

Washington Weighs the Cost of Escalation

Behind the scenes, reports indicate that strategic considerations—not diplomacy alone—also influenced Washington's decision.

According to the New York Times, President Trump temporarily shelved plans for a broader military offensive after senior advisers warned that expanding the campaign could dangerously deplete U.S. Patriot missile interceptor inventories while increasing the risk of a wider regional conflict.

Military planners reportedly warned that the United States had already expended more than 1,200 Patriot missiles, each costing over $4 million, significantly reducing available air defense capabilities across the Middle East.

Officials also cited growing concerns over:

  • Rising oil prices.
  • Increased threats against Gulf allies.
  • The possibility of Iranian retaliation against American regional bases.
  • Doubts that larger strikes would force Tehran back to negotiations.

Separately, Axios reported that CENTCOM commander Admiral Brad Cooper recommended ending the bombing campaign around the Strait of Hormuz, arguing that most designated military targets had already been neutralized and that additional operations would generate diminishing returns.

The Strait of Hormuz Remains the Most Dangerous Flashpoint

Although aerial attacks have paused, maritime tensions continue to intensify.

U.S. Central Command announced that its naval blockade of Iran remains fully operational. Since its reimposition on July 14, twelve commercial vessels have reportedly been redirected, two disabled, and two boarded.

Iran, however, insists that it now exercises complete control over the Strait of Hormuz.

The Islamic Revolutionary Guard Corps (IRGC) announced that no vessel can transit the strategic waterway without complying with Iranian instructions. Iranian media also reported that six commercial ships were forced to halt and follow Iranian naval directives after receiving warnings.

Iranian officials further stated that the Strait remains effectively closed under Tehran's control.

Recognizing the global implications of any prolonged disruption, Iran and Oman have reportedly held several rounds of technical discussions aimed at ensuring safe navigation through the waterway, highlighting Muscat's continued role as a regional mediator.

The risks facing commercial shipping were underscored Sunday when an oil tanker reportedly struck a naval mine and exploded while transiting the Strait of Hormuz after deviating from designated shipping lanes.

Although details surrounding the vessel remain limited, the incident illustrates the increasingly hazardous operating environment in one of the world's most important energy corridors.

Iran and Ukraine Exchange Serious Accusations

The Middle East confrontation has also become intertwined with the ongoing Russia-Ukraine war.

Iran accused Ukraine of attacking an Iranian commercial vessel operating in the Caspian Sea, claiming the explosion killed one sailor and injured another. Tehran condemned the incident as an act of aggression and warned that Ukraine and its supporters would bear responsibility.

The accusation followed Ukrainian President Volodymyr Zelenskyy's announcement that Ukrainian forces had struck Russian vessels allegedly transporting military cargo between Russia and Iran.

Ukraine also claimed attacks against sanctioned cargo ships, offshore energy infrastructure, and a Russian missile boat, although these reports remain independently unverified.

Separately, President Zelenskyy alleged that Russia has supplied Iran with satellite imagery of Gulf states and U.S. military installations, suggesting that Russian intelligence contributed to Iranian missile strikes targeting American bases earlier in the conflict.

If substantiated, such cooperation would represent another significant expansion of strategic coordination between Moscow and Tehran.

Questions Over U.S. Casualty Reporting

Another controversy emerged in Washington after the Associated Press reported that the Pentagon had altered the classification of American casualties from the Iran conflict.

Four U.S. soldiers previously listed as fatalities from the Iran war were reportedly transferred into a newly created "Overseas Operations" category, alongside more than 200 wounded personnel.

While the Defense Department has not publicly explained the administrative changes, the revisions have prompted questions regarding transparency and the true human cost of the recent conflict.

Saudi Arabia Faces Renewed Drone Threats

Regional instability also intensified after Saudi Arabia accused Iran-backed armed groups operating in Iraq of launching drones against oil facilities in the kingdom's Eastern Province and near Riyadh.

Although Saudi authorities provided few operational details, the incident demonstrates how Iraq continues to serve as an important arena for proxy competition between Iran and its regional rivals.

The attacks further reinforce concerns that Gulf energy infrastructure remains vulnerable despite the temporary easing of direct U.S.-Iran hostilities.

Netanyahu Returns to Washington

Israeli Prime Minister Benjamin Netanyahu is expected to meet President Trump in Washington this week, with Iran expected to dominate discussions.

The meeting comes as Israel continues closely coordinating with Washington over Iranian military activities while monitoring whether the current pause evolves into renewed negotiations or another round of military escalation.

Yemen Opens a New Front Against Saudi Arabia

Perhaps the most significant regional development occurred in Yemen.

Ansarallah (the Houthis) announced a major escalation of missile and drone attacks against Saudi Arabia, striking multiple locations including energy facilities, military installations, and infrastructure associated with Saudi oil exports.

Targets reportedly included:

  • Aramco facilities in Jizan.
  • Yanbu.
  • Dhahran.
  • Khamis Mushait Air Base.
  • Areas surrounding airports.

Saudi Arabia has not officially confirmed the attacks.

Ansarallah officials stated that these operations represent implementation of their "siege for a siege" doctrine, arguing that Saudi Arabia's longstanding blockade of Yemen will continue to be met with reciprocal pressure on Saudi shipping and energy infrastructure.

Military spokesman Yahya Saree later announced additional attacks against oil transport routes connecting eastern Saudi Arabia with Red Sea export terminals.

Saudi Arabia Responds

Saudi-backed forces simultaneously reported strikes against Ansarallah positions across Marib and Al-Jawf provinces.

According to Yemeni government media, the attacks targeted missile launchers, rocket systems, weapons depots, and military positions.

Ansarallah officials, however, accused Saudi forces of striking civilian infrastructure, including pharmaceutical factories.

Fighting between Saudi-backed Yemeni groups and Ansarallah forces also intensified across northern Yemen.

Humanitarian and Economic Consequences

Yemen's Transport and Public Works Minister Mohammed Qahim presented a bleak assessment of the economic damage caused by years of blockade and conflict.

According to Yemeni authorities:

  • Hodeidah Port now receives only 400–500 containers compared with over 300,000 annually before the conflict.
  • Annual imports have reportedly fallen from six million tons to approximately one million.
  • Container shipping has effectively ceased for nearly five years.
  • Total economic losses since the blockade began in 2015 are estimated at around $12 billion.

Whether these figures can be independently verified remains uncertain, but they illustrate the scale of humanitarian suffering that continues to accompany the military confrontation.

Analysis: A Pause, Not Peace

The temporary suspension of U.S.-Iran strikes reduces the immediate risk of direct confrontation, but it does not resolve the underlying strategic competition.

Several trends remain particularly significant:

  • Military deterrence has replaced active escalation. Both Washington and Tehran appear to be preserving military capabilities while testing diplomatic options.
  • The Strait of Hormuz remains the world's most dangerous maritime chokepoint. Even isolated incidents could rapidly disrupt global energy markets.
  • Regional proxy conflicts are expanding. Saudi Arabia, Iraq, Yemen, Israel, and the Gulf states remain deeply exposed despite the pause in direct U.S.-Iran fighting.
  • The Russia-Ukraine conflict is increasingly intersecting with Middle Eastern geopolitics, creating new strategic linkages that could further complicate international diplomacy.
  • Yemen's "siege for a siege" strategy signals that regional escalation may continue independently of developments between Washington and Tehran, threatening energy infrastructure and key shipping routes.

The coming days will reveal whether diplomacy can transform the current military pause into a more durable de-escalation. For now, however, the Middle East remains in a state of strategic uncertainty, where a single incident at sea, another proxy strike, or a breakdown in diplomatic contacts could quickly reignite one of the region's most dangerous confrontations.

Sources: Reuters, Associated Press, The New York Times, Axios, Iranian state media (Tasnim), Yemeni media, Israeli Army Radio.

#Iran #UnitedStates #MiddleEast #Yemen #SaudiArabia


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