New Iraqi PM Ali al-Zaidi Faces Mounting Regional Pressures Amid Militia Threats and Gulf Tensions

Arab states in the Persian Gulf are increasingly concerned about threats beyond Iran, with Gulf officials frequently asking, “What do we do about Iraq?”

Previously viewed as a destination for Gulf investment, Iraq now finds itself balancing competing U.S. and Iranian spheres of influence. This dynamic has raised alarms as Iraqi territory has served as a launch point for missiles and drones targeting key Gulf infrastructure, including Kuwaiti border posts, Saudi oil refineries, and the UAE’s nuclear reactor.

Iraq’s newcomer prime minister, Ali al-Zaidi, a 40-year-old banking mogul endorsed by former President Donald Trump, is taking on powerful factions including Iran-backed militias, urging them to submit to governmental authority.

Less than two weeks into his tenure, Mr. Zaidi is steering Iraq through one of its most dangerous crises since the 2003 U.S. invasion. His objectives include repairing relations with Gulf neighbors, reining in militias, and preventing broader regional escalation.

He faces significant challenges, including dual pressure from Washington and Tehran, along with Gulf skepticism. Prior Prime Minister Mohammed Shia al-Sudani’s administration saw a building boom but struggled to counter militia influence or corruption—key concerns for Gulf partners.

Iran’s strategic calculus has shifted, according to Dr. Renad Mansour of Chatham House: “Iran now sees Iraq as part of its war efforts. Iraqi militias will seek to use Iraqi territory while the U.S. continues to strike Iranian proxies in Iraq. Iraq will continue to be a battleground, and the government lacks the sovereignty to stop these attacks.”

Recent momentum includes Iran-backed cleric Moqtada al-Sadr declaring militias would integrate into state security services, pressuring other leaders to follow suit. Mr. Zaidi has called on all armed factions to operate under state authority, emphasizing that “the state is the sole authority entitled to monopolize arms and enforce the law.”

Despite political support across Iraq’s ethnic divides, Gulf officials remain doubtful about any government’s ability to control militias that have gained political influence. “There is no state, only dozens of factions,” one official stated.

Gulf states want concrete actions, not statements, from Mr. Zaidi. They demand proof that Iraq will no longer serve as a launching pad for Iranian attacks while seeking a balanced, independent Iraq with diversified economic foundations.

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