Trump-backed tycoon named Iraq’s PM after US demands Iranian militias excluded from gov't - report
Iraqi officials vetted Al Zaidi as a candidate for Prime Minister with the US and Iran before announcing to public, the Wall Street Journal reports
A little-known Iraqi tycoon will be the next prime minister of Iraq, buoyed by an unprecedented level of public support from the Trump administration.
According to a report by the Wall Street Journal, Ali Al Zaidi, a businessman with no prior experience in public office, was tapped by the US as a compromise candidate to break a months-long political deadlock in Baghdad.
His rise comes with the explicit blessing of President Trump, who has extended an invitation to Washington and declared that the United States is "with him all the way."
The White House is reportedly demanding that Zaidi exclude Iranian-backed militias from the next Iraqi government and move to dismantle Tehran’s deep-seated influence within the country’s state apparatus.
While Zaidi has reportedly received telephone calls of endorsement from both President Trump and Iranian President Masoud Pezeshkian, the conflicting expectations from Washington and Tehran leave little room for middle ground.
The pressure on Zaidi is not entirely unfamiliar. The Wall Street Journal reports that Zaidi previously found himself in the crosshairs of US regulators when the Treasury Department banned his bank from dollar transactions in 2024.
The move was prompted by suspicions that the financial institution was facilitating business for a militia leader linked to Iran’s Islamic Revolutionary Guard Corps (IRGC).
A senior State Department official indicated to the Wall Street Hournal that the US is seeking "concrete actions" against militias responsible for an estimated 600 attacks on American facilities since the outbreak of the US-Israeli war with Iran. To enforce this demand, the administration has already utilized significant financial leverage, suspending the transfer of Iraq’s dollar-denominated oil revenue and withholding security aid.
General Esmail Qaani of the IRGC recently traveled to Baghdad to urge Iraqi officials against sidelining militia leaders or attempting to disarm their groups. These militias have spent years embedding themselves into Iraq’s economy and banking sectors, often using them to siphon US dollars through fraudulent schemes. Serious attempts by Zaidi to diminish their power could spark an internal uprising, turning the political "compromise" of his nomination into a fresh catalyst for conflict.