Updated

The Kurdistan Regional Government said that roughly 70 percent of its trade has been cut off as the war between the United States and Iran drags on, according to reporting published on 11 August 2026. The semi-autonomous northern Iraqi region depends heavily on cross-border commerce with Iran and Turkey, and on transit routes that have been disrupted by the regional conflict, airspace closures and security risks. Officials described mounting economic strain, including losses for traders, pressure on the region's budget and reduced movement of goods through border crossings. The account underlines how the Iran conflict's economic effects are spreading to neighbouring economies that are closely tied to Iranian markets and transport corridors.