U.S. Department of State Spokesperson Matthew Miller on Wednesday told reporters that the United States encourages political parties in the Kurdistan Region to support the inclusive and timely formation of a new Kurdistan Regional Government (KRG) and looks forward to the resumption of Kurdish oil exports from Iraq.

“The seating of a new government will allow the KRG and the Kurdistan Parliament to advance human rights, promote economic development, and enhance the Kurdistan Region’s resiliency as part of a secure, stable, and sovereign Iraq,” Miller said.

Furthermore, he said they had engaged the Government of Iraq and the KRG to reach a durable budget agreement that would facilitate sustained oil production in the Kurdistan Region. “We have seen the review of the budget amendment this week and urge its speedy adoption.”

Read More: Iraqi Government Approves Kurdistan Oil Exports

In a meeting chaired by Iraqi Prime Minister Mohammed Shia’ al-Sudani in November, the Council of Ministers approved a proposal to amend the Iraqi budget law, which could pave the way for the resumption of the Kurdistan Region’s oil exports. However, the amendment has to be approved by the Iraqi parliament first.

Read More: PM Barzani and U.S. Official Discuss Oil Exports, Regional Stability

On January 15, KRG Prime Minister Masrour Barzani hosted a meeting with Victoria Taylor, U.S. Deputy Assistant Secretary of State, in which they both agreed on the urgency of resuming oil exports from the Kurdistan Region as soon as possible, given its importance to all involved parties and the significant harm caused to Iraq’s federal budget by the suspension.

On March 25, 2023, Kurdish crude exports through Turkiye were stopped after an international arbitration court ruled in favor of Baghdad against Ankara, halting 450,000 barrels per day of crude oil exports to international markets.