Why Trump Backs Iraq's New Prime Minister Ali al-Zaidi
Jasim Al-Azzawi
President Donald Trump has backed 40-year-old banking executive Ali al-Zaidi as Iraq's new prime minister, demanding concrete steps to curb Iran-linked militias—a move seen as a Washington victory against Tehran-aligned factions. The U.S. applied heavy pressure, including suspending cash transfers from Iraqi oil revenues, to block former premier Nouri al-Maliki and secure al-Zaidi's nomination.
President Donald Trump has decided to back Ali al-Zaidi, a 40-year-old banking executive with no prior political office, for Iraq's prime minister. The move, unexpected to some, reveals a clear Washington motive: curbing Iranian influence in Iraq.
Initially, the Shiite-alligned Coordination Framework, a coalition of pro-Iran parties, backed former Prime Minister Nouri al-Maliki. Washington viewed installing an Iran-friendly premier as a "red line," especially as Iran-linked militia attacks on U.S. forces continued. Trump publicly opposed al-Maliki and threatened to cut all aid to Iraq should he take office.
The U.S. pressure campaign was swift and forceful. America suspended cash transfers from Iraqi oil revenues held at the New York Federal Reserve Bank, halted security assistance, and ended cooperation with Iraqi security agencies. Treasury Secretary Scott Bessent warned that those facilitating militia violence "will be held accountable."
Under this pressure, the Coordination Framework yielded. After failing to push through Bassem al-Badry, al-Maliki's preferred candidate, the coalition met and within 25 minutes agreed on Ali al-Zaidi as a compromise candidate.
President Trump immediately declared victory. He called al-Zaidi, invited him to Washington, and posted on Truth Social congratulating "a new government without terror, giving a bright future for Iraq." To reporters at the White House, Trump said bluntly: "With our help, he won."
Washington trusts al-Zaidi for three key reasons. First, he is an outsider with a business background, having served as chairman of Al-Janoob Islamic Bank. His political inexperience is actually an advantage, making him an acceptable choice both domestically and internationally. Second, while his bank was barred from dollar transactions in 2024 over suspected money laundering and sanctions evasion on behalf of Iran, neither the bank nor al-Zaidi personally has been sanctioned by Washington—suggesting he is not deeply entangled in Iran's Iraqi network. Third, al-Zaidi enables a broader deal that includes significant Iraqi concessions.
Washington's support is conditional. A senior State Department official said the U.S. demands "concrete actions" from al-Zaidi's government, including "expelling terrorist militias from all state institutions, cutting budget support, and stopping salaries for militia fighters." U.S. facilities in Iraq have faced over 600 attacks from Iran-linked militias since the U.S. and Israel launched their war on Iran on February 28, 2026.
Under Iraq's constitution, al-Zaidi has 30 days to present a cabinet to parliament, requiring 167 votes for approval. He has pledged to make Iraq "a balanced nation regionally and internationally." Al-Maliki's political career appears over after Trump's intervention.
Major challenges await al-Zaidi. The U.S. wants the new government to disband Iran-linked militias. He may approach this economically: cutting salaries for tens of thousands of fighters, causing many factions to dissolve, with a small number possibly absorbed into the Iraqi army. The paralysis of oil exports due to the closure of the Strait of Hormuz is also urgent. However, Baghdad could see relief if Washington releases funds from the Federal Reserve Bank—depending on progress on the militia issue.
