Iraq's newly elected president nominated businessman Ali al-Zaidi as the country's prime minister-designate on Monday, after the country's leaders yielded to US pressure not to support the bid of a former premier close to Iran.
The Coordination Framework, an alliance of Shiite factions with varying links to Iran, had initially backed powerbroker Nouri al-Maliki to become the country's next premier, but an ultimatum by US President Donald Trump left Iraqi leaders looking elsewhere.
For weeks, they were locked in intense discussions to settle the question and avoid punitive measures after Trump threatened in January to cut all support for Iraq if two-time ex-premier Maliki, who has close ties to Iran, returned to power.
"President Nizar Amedi has tasked Ali al-Zaidi, the candidate of the largest parliamentary bloc, with forming the new government," the presidency said in a statement.
Zaidi will now have 30 days to form a government -- a daunting task in a country where constitutional deadlines are rarely respected.
The announcement came shortly after the Coordination Framework endorsed Zaidi as its candidate.
The alliance also praised "the historic and responsible stance" of Maliki and caretaker Prime Minister Mohammed Shia al-Sudani "for withdrawing" their candidacies.
Yasser al-Maliki, the head of Maliki's parliamentary bloc, congratulated the PM-designate and said "we will support him" in his mission to form a government.
Following the 2003 invasion that overthrew former ruler Saddam Hussein, the US has held major sway in Iraq.
But the invasion has also paved the way for the US' archenemy Iran in the country's halls of power.
Since then, the country's leaders have struggled to balance relations between Washington and Tehran.
- 'Has the tools' -
By convention, a Shiite holds the powerful post of prime minister, the parliament speaker is a Sunni, and the largely ceremonial presidency goes to a Kurd.
Seen as a compromise figure, Zaidi is little known in political circles.
He is a businessman, banker and owner of a television channel, and has never held a government post.
If he succeeds in forming a government, Zaidi will become Iraq's youngest prime minister at the age of 40.
Political analyst Hamzeh Hadad said it appeared that Zaidi "has the tools" as a banker and TV channel owner "to help him sway people and politicians".
His nomination also "allows the Coordination Framework to claim they are abiding by the constitutional timeline," whether he ends up forming a government or not.
In recent years, and after decades of conflicts, oil-rich Iraq has begun to enjoy some stability, yet its politics remain volatile, shaped not only by internal disputes but also by regional dynamics.
- Regional war -
The new nomination came against the backdrop of a regional war ignited by a joint US-Israeli attack on Iran.
Iraq was dragged into the Middle East conflict, with strikes targeting both US interests and Tehran-backed groups in the country.
During the war, Iraqi leaders scaled back their talks to settle the premiership question, and only resumed them intensively a few days after a fragile US-Iran ceasefire took effect on April 8.
Iraq's new premier will be expected to address Washington's longstanding demand that Baghdad disarm Iran-backed groups, which the US has designated as terrorist organizations.
From the onset of the war, these groups targeted US interests in Iraq and the broader region.
The new PM will also need to repair Iraq's relations with Gulf countries, which have protested attacks by Tehran-backed groups on their territory during the war.
Zaidi will have to address Iraq's many economic woes, particularly after the sharp drop of income caused by disruption in the Strait of Hormuz, given that oil exports make up some 90 percent of the country's budget revenues.
