The semi-autonomous Kurdish region of Iraq has endured severe repercussions from the ongoing United States-Iran conflict, which began in February. Despite the Kurdistan Regional Government's efforts to remain neutral and avoid involvement in the conflict, it has been targeted by hundreds of missiles and drones, causing casualties and extensive damage to infrastructure. The regional conflict has led to a 70 percent decrease in trade across the Kurdish region, exacerbating an already chronic financial crisis. Economic losses are estimated at $1.14 billion up to April, according to KRG data. Attacks on the region have been traced back to factions operating outside of state institutions, yet no measures have been taken by the Iraqi government. The US has also faced retaliatory attacks from Tehran-backed groups in the Kurdish region, further escalating tensions across the Middle East and beyond. Economic instability is a growing concern not just for the Kurdish region but for Iraq as a whole, with the Ministry of Oil announcing that oil production has been significantly impacted. The conflict has also destabilized the region, with concerns raised about armed groups operating outside of state institutions and violating Iraqi sovereignty.