Iraq approved a plan for its semi-autonomous Kurdish region to transfer oil to Baghdad, a key step toward resuming exports that have been halted for more than two years.

Oil rose in early trading, buoyed by concerns over supply disruptions following drone strikes on oilfields in Iraq’s Kurdistan region and fresh EU sanctions targeting Russia’s energy sector.

The decision by the Kurdistan Workers Party (PKK) to lay down its arms and apparently disband has reverberated across the Kurdistan region of northern Iraq. For decades, the Turkish army has operated in northern Iraq and has established bases and posts in the mountainous Kurdish region.

Iraq approved a plan for its semi-autonomous Kurdish region to transfer oil to Baghdad, a step toward resuming exports that have been halted for more than two years.