Kurdish leaders in the Kurdistan Regional Government have prioritized coordination with Iraq’s federal authorities on budget shares, oil revenues, and constitutional disputes, including recent high-level meetings and a new permanent coordination committee. Following the U.S.-led coalition’s withdrawal in September 2026, KRG officials including Presidents Masoud and Nechirvan Barzani emphasized Peshmerga readiness and support for Iraqi sovereignty within the federal framework rather than secession. Internal negotiations between the KDP and PUK continue over cabinet formation after the 2024 elections, while ongoing Iranian drone strikes on opposition groups inside the region have reinforced calls for stability. These developments sustain trader consensus that a formal independence declaration by year-end remains improbable.