Oilprice.com | James Durso
Iraq's newly nominated Prime Minister, Ali al-Zaidi, faces immediate and complex strategic challenges balancing U.S. and Iranian influence. Washington supports al-Zaidi as a compromise candidate, aiming to curb Iran-linked militias, reduce Iraq's heavy dependence on Iranian natural gas imports, and expand U.S. economic involvement. Key issues include the U.S. push to sanction and integrate militias like the PMF into unified Iraqi command, and Iraq's vulnerability due to its reliance on Iranian gas, which has seen volatile supply disruptions, including after an Israeli attack on Iran's South Pars field. Iraq plans to achieve zero routine gas flaring by 2028 to reduce this dependence. Al-Zaidi must also navigate increased U.S. investment in Iraq's oil sector and infrastructure projects like the Development Road, while asserting Iraqi sovereignty amidst U.S. strategic cooperation and military presence, especially following regional conflicts. The formation of an inclusive government, free of hardline Iranian proxies, remains a critical U.S. condition.
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