The US embassy in Baghdad extended on Wednesday its "best wishes" to Iraq's prime minister-designate, Ali Al Zaidi, signalling cautious engagement after the controversial tycoon was tapped by an Iran-aligned political bloc to end months of deadlock.
Mr Al Zaidi, a 41-year-old businessman, was nominated on Monday as a compromise candidate. He has no political track record and did not take part in November's national elections. Instead, his public profile is built on a business empire that has thrived on lucrative government contracts.
Efforts to form a government among Shiite political parties have been overshadowed by rising tensions with Washington, which has rejected any role for Iran-backed militias and warned of potential economic and security measures against Baghdad.
In a statement posted on X, the US mission said it “extends its best wishes” to Mr Al Zaidi as he works to “form a government capable of fulfilling the hopes of all Iraqis for a brighter and more peaceful future”.
The statement stopped short of an endorsement but set out clear benchmarks: counter-terrorism, prosperity and sovereignty.
"We stand in solidarity with the Iraqi people aspiring to the shared objectives of safeguarding Iraq's sovereignty, promoting security free from terrorism, and building a prosperous future that delivers tangible benefits for Americans and Iraqis," it added.
The wording echoes a recent warning from the US charge d'affaires that Iraq must choose to be a “partner or adversary” as state institutions become “more intertwined with terrorist militias day by day”.
Mr Al Zaidi's nomination by the Co-ordination Framework, Iraq’s largest Shiite parliamentary bloc, is intended to break an impasse between caretaker Prime Minister Mohammed Shia Al Sudani and former prime minister Nouri Al Maliki. The bloc missed its 15-day constitutional deadline to nominate a candidate, prompting warnings from legal experts that the delay breached Article 76.
As a part of his efforts to form a new government, Mr Al Zaidi met the heads of Shiite political parties who promised him co-operation and support.
On Tuesday, he held talks with Mr Al Sudani on the "overall situation in the country and the region", said the prime minister's office.
They both stressed "the need to strengthen unity among all national parties and to work in the spirit of responsibility and partnership in order to proceed with forming a government that represents all Iraqis", it said in a statement.
On Wednesday, he met other leaders including Mr Al Maliki, who offered to support his efforts to form a "government that consolidates sovereignty", said a statement.
National State Forces Alliance leader Ammar Al Hakim urged Mr Al Zaidi to form a government that would "open up to the regional and international countries and to ease tension with all". He also called on him to address financial and economic challenges and to introduce the needed reforms.
Baghdad's relations with its neighbours, mainly in the Gulf, have been strained since the start of the US-Israeli war with Iran, after pro-Tehran militias launched attacks on US troops in Iraq in solidarity with the Islamic Republic.
A businessman who rose to prominence after 2003, Mr Al Zaidi chairs the National Holding Company and previously led Al Janoob Islamic Bank – one of eight Iraqi banks barred from US dollar transactions by the Central Bank of Iraq in February 2024, following recommendations from the US Treasury, citing concerns over fraud, money laundering and illicit dollar flows. His firm, Al Awees, also holds a multibillion-dollar contract to supply subsidised food under Iraq’s Public Distribution System.
He now faces a 30-day deadline to form a cabinet and secure parliamentary approval by an absolute majority. The task is complicated by the continuing US-Iran war and the closure of the Strait of Hormuz, which has slashed Iraq’s oil exports to about 300,000 barrels per day from around 3.5 million bpd, threatening the government's ability to pay public salaries.
