Shafaq News/ The Kurdish leader Masoud Barzani said that the Federal Supreme Court decision regarding the oil and gas law is hostile towards Kurdistan.

"This is a political decision, against the federal Iraqi constitution, and it aims to antagonize the Kurdistan region and the federal system in Iraq," Barzani said in a statement.

He added, "We hope that the federal and Kurdish governments will be able to overcome the obstacles and agree on the oil and gas file."

"However, we announce to everyone that the Kurdistan Region will effectively use all instruments of power to preserve its constitutional rights."

Iraq's federal court on Tuesday deemed an oil and gas law regulating the oil industry in Iraqi Kurdistan unconstitutional, according to a document seen by Shafaq News Agency.

Tuesday's court decision stated that the KRG must hand over all crude from the Kurdistan Region and neighboring areas to the Federal Government, represented by the oil ministry in Baghdad.

The ruling declared KRG oil contracts with oil companies, foreign parties, and states invalid. According to the document, this includes exploration, extraction, export, and sale agreements.

The ruling also stated that the oil ministry must audit all agreements concluded by the KRG with oil and gas companies.

The Kurdish Regional Government (KRG) has been developing oil and gas resources independently of the Federal Government, and in 2007 enacted its own law that established the directives by which the Region would administer these resources.

KRG crude is exported through a pipeline that runs from Kirkuk to the Turkish port of Ceyhan.