Iraq’s New Prime Minister Caught Between U.S. Pressure and Iran-Backed Militias

Iraqi Prime Minister Ali al-Zaydi is trying to keep his country from financial collapse ahead of an expected visit to the United States next month, while U.S. envoy Tom Barrack pressed Baghdad this week to disarm militias before it receives aid from Washington or regional partners. According to the Saudi paper Asharq Al-Awsat, Barrack visited Baghdad on Monday and Tuesday, then also went to Erbil, to ensure Iraq is “doing what is required” on militia weapons dismantlement.

The Iraqi side hopes al-Zaydi’s meeting with the U.S. president in Washington in mid-July will produce American loans, possibly with Gulf states joining the financing. Iraqi sources said dozens of Iraqi businesspeople will accompany him in hopes of reviving the nearly empty state treasury. But the deal being discussed goes beyond collecting weapons. It also includes cutting militia income sources, blocking their members from entering government, and severing the channels Iran uses to reach profitable Iraqi economic institutions.

Since winning parliamentary approval, al-Zaydi has been balancing shrinking Iranian influence against U.S. pressure to curb the militias, and his government has moved more clearly toward Washington. Behind the scenes, 12 leaders of Shiite parties discussed the American pressure and the so-called “loyalist factions,” militias linked to Iran that operate under the umbrella of the Popular Mobilization Forces and possess drones, missiles, and large weapons stockpiles. The U.S. pressure is paired with threats of severe financial and economic sanctions on Iraq.

Some groups are already aligning with the plan. Asaib Ahl al-Haq and Kataib al-Imam Ali said they would place their brigades directly under the prime minister and cut ties with the Popular Mobilization Forces. Muqtada al-Sadr also said Saraya al-Salam would separate and integrate into state structures. But Kataib Hezbollah and the al-Nujaba Movement strongly oppose the move, saying the weapons are “ideological” and protect Iraq’s sovereignty.

On Tuesday, Barrack and al-Zaydi issued a joint U.S.-Iraqi statement calling for “full disarmament and the dismantling of all armed groups and formations operating outside state authority.” The article says President Trump wants the new Iraqi government to become a “success story,” while Iraqi experts doubt the process will hold, especially because Iran has not reacted publicly to the militia integration plan.