Iraqi businessman and former banker Ali al-Zaidi is set to take over as Prime Minister after being nominated by a ruling alliance of Iraq's Shi’ite political factions.
The oil industry is set to be a major focus for the new PM. Iraq's oil exports accounted for about 88% of the country's total revenues last year, according to the Iraqi Finance Ministry, with most of its oil exports passing through the Strait of Hormuz before it was effectively closed after the start of the US and Israeli war against Iran.
The Coordination Framework alliance nominated al-Zaidi as its prime minister-designate after outgoing PM Mohammed Shia al-Sudani's term officially ended on Sunday.
Iraqi President Nizar Amedi, who was appointed earlier in April, has instructed Al-Zaidi to form a government following his nomination.
According to law, Al-Zaidi has 30 days to pick Cabinet members and submit them to the lower house of Iraq's parliament, the Council of Representatives, for a vote of confidence.
The Coordination Framework's secretary general Abbas al-Amiri told Iraqi News Agency on Monday that the alliance's leaders will meet al-Zaidi on Tuesday to discuss the Cabinet formation.
Al-Zaidi, who was born in 1986, has spent most of his career in private business rather than politics. He chairs the National Holding Company, also known as Al Watania Holding, which is a major private investment group involved in various business sectors.
Al-Zaidi is a compromise candidate after US President Donald Trump voiced a strong objection to the alliance's previous anticipated nominee, former prime minister Nouri al-Maliki.
Trump posted on his Truth Social platform in January: “Last time Maliki was in power, the Country descended into poverty and total chaos. That should not be allowed to happen again.”
Italy-based consultancy SpecialEurasia said in a report earlier this year: “Al-Maliki is widely regarded as aligned with Iran. Tehran supported him during his premiership between 2006 and 2014 and afterwards, and his interests converge with Iran-aligned Shia factions in preserving the post-2003 order.”
According to the International Energy Agency, Iraq last year exported over 3.3 million barrels of oil per day via the Strait of Hormuz, or around 80% of the country’s total oil production.
Following the outbreak of the conflict, Iraq's oil production dropped to about 1.63 million barrels per day in March, against 4.2 billion bpd shipped in February, independent monitor ECO Iraq Observatory estimates.