BAGHDAD: More than a month after Iraq parliamentary elections, political leaders are still negotiating the formation of a new government amid growing pressure from the United States. Washington has urged Iraqi leaders to exclude what it describes as Iran-backed armed groups from the next ruling coalition.
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Iraq finds itself navigating a complex regional landscape as power dynamics shift across the Middle East. Long caught between US and Iranian influence, Baghdad is once again attempting to strike a delicate balance while avoiding deeper political and economic fallout.
The United States, which has played a major role in Iraqi politics since the 2003 invasion, has been explicit about its demands. US officials have said any future government should move to dismantle Iran-backed militias rather than include them in power-sharing arrangements.
Twenty-three years after the fall of the dictatorship, Iraq stands once again at a decisive moment. The country was given a historic opportunity to rebuild its institutions and secure a prosperous future. Yet, no nation can succeed while armed groups compete with the state and… pic.twitter.com/RpNZyRorqr
— Mark Savaya (@Mark_Savaya) December 11, 2025
A State Department spokesperson said Iraqi leaders were well aware of what Washington considers compatible with a strong bilateral partnership. The spokesperson added that the US would continue to speak “plainly” about the urgency of addressing Iran-linked armed factions.
Several of these groups are part of the Hashed al Shaabi, a former paramilitary alliance now formally integrated into Iraq’s security forces. Some of them gained increased representation in parliament and are aligned with the Coordination Framework, a bloc of Shia parties that holds a majority and is currently negotiating over the next prime minister.
US special envoy to Iraq Mark Savaya warned that Iraqi leaders were at a “crossroads,” saying their decisions would signal whether Iraq aims to be a stable and respected state. His remarks underlined Washington’s expectation of political distancing from Tehran-backed actors.
Economic considerations also loom large in the negotiations. Iraq hopes to attract foreign investment and deepen ties with US companies, even as Washington has sanctioned Iraqi banks accused of helping Iran evade restrictions.
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Despite regional turmoil since the Gaza conflict erupted in October 2023, Iraq has largely avoided direct escalation. While some armed groups briefly targeted US troops, the attacks have since stopped, keeping Iraq out of wider confrontation.