In Baghdad, President Nizar Amedi named businessman Ali al‑Zaidi prime minister‑designate after a month‑long stalemate fueled by U.S. and Iranian pressure. Al‑Zaidi, with no prior political office, must assemble a cabinet within 30 days and secure parliamentary approval.

The decision follows months of tension over Iraq’s government formation, with former prime minister Nuri Kamal al‑Maliki and current PM Mohammed Shia al‑Sudani withdrawing. U.S. aid to Iraq’s security forces and air shipments of oil‑derived dollars have been halted while Iranian‑aligned militias attack U.S. interests.

Al‑Zaidi’s appointment signals a break from entrenched Shiite blocs and offers a chance to reset Iraq’s fragile balance. Investors will watch how the new leadership handles the suspended U.S. financing and whether it can stabilize the country’s economy, a key concern for regional markets.

The outcome will directly affect Iraq’s oil revenue streams and the broader Gulf market, making the new cabinet’s composition a critical indicator for regional stability.