Gaza Is in Ruins after Israel’s Yearlong Offensive. Rebuilding May Take Decades

This overview shows a destroyed mosque and other buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)
This overview shows a destroyed mosque and other buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)
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Gaza Is in Ruins after Israel’s Yearlong Offensive. Rebuilding May Take Decades

This overview shows a destroyed mosque and other buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)
This overview shows a destroyed mosque and other buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)

The Gaza Strip is in ruins.

There are hills of rubble where apartment blocks stood, and pools of sewage-tainted water spreading disease. City streets have been churned into dirt canyons and, in many places, the air is filled with the stench of unrecovered corpses.

Israel’s yearlong offensive against Hamas, one of the deadliest and most destructive in recent history, has killed more than 41,000 people, a little over half of them women and children, according to local health officials. With no end in sight to the war and no plan for the day after, it is impossible to say when – or even if – anything will be rebuilt.

Even after the fighting stops, hundreds of thousands of people could be stuck living in squalid tent camps for years. Experts say reconstruction could take decades.

“This war is destruction and misery. It would make the stones cry out,” said Shifaa Hejjo, a 60-year-old housewife living in a tent pitched on land where her home once stood. “Whoever sees Gaza ... It will make them cry.”

Israel blames the destruction on Hamas. Its Oct. 7 attack on Israel — in which some 1,200 people were killed and around 250 taken hostage — ignited the war. Israel says Hamas embedded much of its military infrastructure, including hundreds of kilometers (miles) of tunnels, in densely populated areas where some of the heaviest battles were fought.

The fighting left roughly a quarter of all structures in Gaza destroyed or severely damaged, according to a UN assessment in September based on satellite footage. It said around 66% of structures, including more than 227,000 housing units, had sustained at least some damage.

If there's a ceasefire, around half of all families “have nowhere to go back to,” said Alison Ely, a Gaza-based coordinator with the Shelter Cluster, an international coalition of aid providers led by the Norwegian Refugee Council.

The devastation in Gaza rivals front-line towns in Ukraine

Almost as many buildings have been destroyed or damaged in Gaza as in all of Ukraine after its first two years of war with Russia, according to Corey Scher and Jamon Van Den Hoek, US-based researchers who use satellite radar to document the wars' devastation.

To put that into perspective: Gaza is less than half the size of Ukraine's capital, Kyiv.

The amount of destruction in central and southern Gaza alone, Scher said, is roughly equivalent to what was lost in the front-line town of Bakhmut, the scene of one of the deadliest battles in the Ukraine war and where Russian forces destroyed nearly every building in their path to force Ukrainian troops to withdraw. The destruction in northern Gaza is even worse, he said.

Gaza’s water and sanitation system has collapsed. More than 80% of its health facilities — and even more of its roads — are damaged or destroyed.

“I can’t think of any parallel, in terms of the severity of damage, for an enclave or a country or a people,” Scher said.

This overview shows destroyed buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)

At the end of January, the World Bank estimated $18.5 billion of damage — nearly the combined economic output of the West Bank and Gaza in 2022. That was before some intensely destructive Israeli ground operations, including in the southern border city of Rafah.

’I couldn’t tell where people’s homes were’ When Israeli ground forces pushed into the southern city of Khan Younis in January, Shifaa Hejjo and her family fled their four-story home with only the clothes they were wearing.

They spent months in various tent camps before she decided to return – and the sight brought her to tears.

Her entire neighborhood had been destroyed, her former home and the roads leading to it lost in a sea of rubble.

“I didn’t recognize it,” she said. “I couldn’t tell where people’s homes were.”

Around 90% of Gaza’s 2.3 million people have been displaced by the war, often multiple times, according to UN estimates. Hundreds of thousands have crowded into sprawling tent camps near the coast with no electricity, running water or toilets. Hunger is widespread.

Hejjo lived in a tent in the courtyard of a hospital. Before that, she was in Muwasi, the main tent camp in southern Gaza.

“It smelled bad,” she said. “There were diseases spreading.”

She said her husband, who was suffering from liver disease, was broken-hearted when he heard their home had been destroyed and he died shortly thereafter.

She was among the first to return after Israeli forces withdrew in April. Her neighbors stayed away, fearful they would find bodies or unexploded bombs.

But for her it was still home.

“It is better to live in my home, where I lived for 37 years, even though it is destroyed,” she said.

Hejjo and her children dug through the rubble with shovels and their bare hands, going brick by brick and saving whatever could be reused. Torn clothes were used to feed cooking fires.

Rats had crept in, and swarms of mosquitoes hovered over the ruins. There was broken glass everywhere. They set up a tent fortified by corrugated metal sheeting and some bricks salvaged from her destroyed home. A light drizzle wet their clothes as they slept.

UN agencies say unemployment has soared to around 80% — up from nearly 50% before the war — and that almost the entire population is living in poverty. Even those with means would find it nearly impossible to import construction materials because of Israeli restrictions, ongoing fighting and the breakdown of law and order.

A man standing atop a heavily damaged building views other destroyed buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)

There are mountains of rubble, little water and no electricity

The first obstacle to any significant rebuilding is the rubble – mountains of it.

Where houses, shops and office buildings once stood, there are now giant drifts of rubble laced with human remains, hazardous substances and unexploded munitions.

The UN estimates the war has left some 40 million tons of debris and rubble in Gaza, enough to fill New York’s Central Park to a depth of eight meters (about 25 feet). It could take up to 15 years and nearly $650 million to clear it all away, it said.

There’s also the question of where to dispose of it: The UN estimates about five square kilometers (about two square miles) of land would be needed, which will be hard to come by in the small and densely populated territory.

It isn’t just homes that were destroyed, but also critical infrastructure.

The UN estimates nearly 70% of Gaza’s water and sanitation plants have been destroyed or damaged. That includes all five of the territory’s wastewater treatment facilities, plus desalination plants, sewage pumping stations, wells and reservoirs.

The employees who once managed municipal water and waste systems have been displaced, and some killed. And fuel shortages have made it difficult to keep operating facilities that are still intact.

The international charity Oxfam said it applied in December for a permit to bring in desalination units, and pipes to repair water infrastructure. It took three months for Israel to approve the shipment, but it still has not entered Gaza, Oxfam said.

The destruction of sewage networks has left streets flooded with putrid water, hastening the spread of disease.

There has been no central power in Gaza since the opening days of the war, when its sole power plant was forced to shut down for lack of fuel, and more than half of the territory's electrical grid has been destroyed, according to the World Bank.

This overview shows destroyed buildings in Khan Younis in the southern Gaza Strip on October 7, 2024 on the first anniversary of the ongoing war in the Palestinian territory between Israel and Hamas. (AFP)

Israeli Prime Minister Benjamin Netanyahu has said he won’t allow Hamas or even the Western-backed Palestinian Authority to govern Gaza. He has said Israel will maintain open-ended security control and delegate civilian affairs to local Palestinians. But none are known to have volunteered, and Hamas has threatened to kill anyone who aids the occupation.

Rebuilding Gaza would also require the import of massive amounts of construction supplies and heavy equipment, which Israel is unlikely to allow as long as there’s a potential for Hamas to rebuild its militant infrastructure. In any case, Gaza has only a small number of crossings with limited capacity.

The Israeli military body that coordinates civilian affairs in Gaza says it does not restrict the entry of civilian supplies and allows so-called dual-use items that could also be used for military purposes. Israel allowed some construction materials in before the war under what was known as the Gaza Reconstruction Mechanism, but it was subject to heavy restrictions and delays.

The Shelter Cluster estimates that it would take 40 years to rebuild all of Gaza’s destroyed homes under that setup.

For now, aid providers are struggling just to bring in enough basic tents because of the limited number of trucks going into Gaza and the challenges of delivering aid. Efforts to bring in more robust temporary housing are still in the early stages, and no one has even tried to bring in construction materials, according to Ely.

In September, the Shelter Cluster estimated 900,000 people were still in need of tents, bedding and other items to prepare for the region's typically cold and rainy winters.



Iraq's Political Future in Limbo as Factions Vie for Power

FILED - 02 November 2025, Iraq, Najaf: Iraqi Prime Minister Mohammed Shia' al-Sudani delivers a speech during a campaign rally of his Reconstruction and Development Coalition in Najaf, ahead of the Iraqi parliamentary elections, scheduled to be held on 11 November 2025. Photo: Ameer Al-Mohammedawi/dpa
FILED - 02 November 2025, Iraq, Najaf: Iraqi Prime Minister Mohammed Shia' al-Sudani delivers a speech during a campaign rally of his Reconstruction and Development Coalition in Najaf, ahead of the Iraqi parliamentary elections, scheduled to be held on 11 November 2025. Photo: Ameer Al-Mohammedawi/dpa
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Iraq's Political Future in Limbo as Factions Vie for Power

FILED - 02 November 2025, Iraq, Najaf: Iraqi Prime Minister Mohammed Shia' al-Sudani delivers a speech during a campaign rally of his Reconstruction and Development Coalition in Najaf, ahead of the Iraqi parliamentary elections, scheduled to be held on 11 November 2025. Photo: Ameer Al-Mohammedawi/dpa
FILED - 02 November 2025, Iraq, Najaf: Iraqi Prime Minister Mohammed Shia' al-Sudani delivers a speech during a campaign rally of his Reconstruction and Development Coalition in Najaf, ahead of the Iraqi parliamentary elections, scheduled to be held on 11 November 2025. Photo: Ameer Al-Mohammedawi/dpa

Political factions in Iraq have been maneuvering since the parliamentary election more than a month ago to form alliances that will shape the next government.

The November election didn't produce a bloc with a decisive majority, opening the door to a prolonged period of negotiations, said The Associated Press.

The government that eventually emerges will be inheriting a security situation that has stabilized in recent years, but it will also face a fragmented parliament, growing political influence by armed factions, a fragile economy, and often conflicting international and regional pressures, including the future of Iran-backed armed groups.

Uncertain prospects

Prime Minister Mohammed Shia al-Sudani's party took the largest number of seats in the election. Al-Sudani positioned himself in his first term as a pragmatist focused on improving public services and managed to keep Iraq on the sidelines of regional conflicts.

While his party is nominally part of the Coordination Framework, a coalition of Iran-backed Shiite parties that became the largest parliamentary bloc, observers say it’s unlikely that the Coordination Framework will support al-Sudani’s reelection bid.

“The choice for prime minister has to be someone the Framework believes they can control and doesn't have his own political ambitions,” said Sajad Jiyad, an Iraqi political analyst and fellow at The Century Foundation think tank.

Al-Sudani came to power in 2022 with the backing of the Framework, but Jiyad said that he believes now the coalition “will not give al-Sudani a second term as he has become a powerful competitor.”

The only Iraqi prime minister to serve a second term since 2003 was Nouri al-Maliki, first elected in 2006. His bid for a third term failed after being criticized for monopolizing power and alienating Sunnis and Kurds.

Jiyad said that the Coordination Framework drew a lesson from Maliki “that an ambitious prime minister will seek to consolidate power at the expense of others.”

He said that the figure selected as Iraq's prime minister must generally be seen as acceptable to Iran and the United States — two countries with huge influence over Iraq — and to Iraq’s top Shiite cleric, Grand Ali al-Sistani.

Al-Sudani in a bind

In the election, Shiite alliances and lists — dominated by the Coordination Framework parties — secured 187 seats, Sunni groups 77 seats, Kurdish groups 56 seats, in addition to nine seats reserved for members of minority groups.

The Reconstruction and Development Coalition, led by al-Sudani, dominated in Baghdad, and in several other provinces, winning 46 seats.

Al-Sudani's results, while strong, don't allow him to form a government without the support of a coalition, forcing him to align the Coordination Framework to preserve his political prospects.

Some saw this dynamic at play earlier this month when al-Sudani's government retracted a terror designation that Iraq had imposed on the Lebanese Hezbollah militant group and Yemen’s Houthis— Iran-aligned groups that are allied with Iraqi armed factions — just weeks after imposing the measure, saying it was a mistake.

The Coalition Framework saw its hand strengthened by the absence from the election of the powerful Sadrist movement led by Shiite cleric Muqtada Sadr, which has been boycotting the political system since being unable to form a government after winning the most seats in the 2021 election.

Hamed Al-Sayed, a political activist and official with the National Line Movement, an independent party that boycotted the election, said that Sadr’s absence had a “central impact.”

“It reduced participation in areas that were traditionally within his sphere of influence, such as Baghdad and the southern governorates, leaving an electoral vacuum that was exploited by rival militia groups,” he said, referring to several parties within the Coordination Framework that also have armed wings.

Groups with affiliated armed wings won more than 100 parliamentary seats, the largest showing since 2003.

Other political actors

Sunni forces, meanwhile, sought to reorganize under a new coalition called the National Political Council, aiming to regain influence lost since the 2018 and 2021 elections.

The Kurdish political scene remained dominated by the traditional split between the Kurdistan Democratic Party and Patriotic Union of Kurdistan parties, with ongoing negotiations between the two over the presidency.

By convention, Iraq’s president is always a Kurd, while the more powerful prime minister is Shiite and the parliamentary speaker Sunni.

Parliament is required to elect a speaker within 15 days of the Federal Supreme Court’s ratification of the election result, which occurred on Dec. 14.

The parliament should elect a president within 30 days of its first session, and the prime minister should be appointed within 15 days of the president’s election, with 30 days allotted to form the new government.

Washington steps in

The incoming government will face major economic and political challenges.

They include a high level of public debt — more than 90 trillion Iraqi dinars ($69 billion) — and a state budget that remains reliant on oil for about 90% of revenues, despite attempts to diversify, as well as entrenched corruption.

But perhaps the most delicate question will be the future of the Popular Mobilization Forces, a coalition of militias that formed to fight the ISIS group as it rampaged across Iraq more than a decade ago.

It was formally placed under the control of the Iraqi military in 2016 but in practice still operates with significant autonomy. After the Hamas-led attack in southern Israel on Oct. 7, 2023 sparked the devastating war in Gaza, some armed groups within the PMF launched attacks on US bases in the region in retaliation for Washington’s backing of Israel.

The US has been pushing for Iraq to disarm Iran-backed groups — a difficult proposition, given the political power that many of them hold and Iran’s likely opposition to such a step.

Two senior Iraqi political officials, who spoke on condition of anonymity because they weren't authorized to comment publicly, said that the United States had warned against selecting any candidate for prime minister who controls an armed faction and also cautioned against letting figures associated with militias control key ministries or hold significant security posts.

“The biggest issue will be how to deal with the pro-Iran parties with armed wings, particularly those... which have been designated by the United States as terrorist entities,” Jiyad said.


What Egypt’s Red Lines Mean for Sudan’s War

Egyptian President Abdel Fattah al-Sisi holds talks with Sudan’s army chief Abdel Fattah al-Burhan in Cairo on Thursday (Egyptian Presidency)
Egyptian President Abdel Fattah al-Sisi holds talks with Sudan’s army chief Abdel Fattah al-Burhan in Cairo on Thursday (Egyptian Presidency)
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What Egypt’s Red Lines Mean for Sudan’s War

Egyptian President Abdel Fattah al-Sisi holds talks with Sudan’s army chief Abdel Fattah al-Burhan in Cairo on Thursday (Egyptian Presidency)
Egyptian President Abdel Fattah al-Sisi holds talks with Sudan’s army chief Abdel Fattah al-Burhan in Cairo on Thursday (Egyptian Presidency)

In unusually blunt language, and following a visit by Sudan’s Sovereignty Council Chairman and army chief Abdel Fattah al-Burhan to Cairo, the Egyptian presidency issued a statement on the war in Sudan outlining three points it described as red lines.

It said Egypt would not allow any of them to be crossed or compromised, as they directly affect Egypt’s national security, which it said is inseparable from Sudan’s national security.

The reference to activating the joint defense agreement between the two countries was seen as a signal that Egypt could bring its military, political, and diplomatic weight to bear in support of the Sudanese army.

Joint defense agreement

In March 2021, Egypt signed a military cooperation agreement with Sudan that covers training, border security, and the confrontation of shared threats. That agreement followed a joint defense pact signed in 1976 during the presidencies of Sudan’s Gaafar Nimeiry and Egypt’s Anwar Sadat.

Articles One and Two of the pact stipulate that any attack on one party is considered an attack on the other, and require immediate consultation, including the use of armed force to repel aggression. The agreement also commits both sides to coordinating their defense and military policies on matters related to their national security.

After the fall of Nimeiry’s regime in the 1985 popular uprising, then Prime Minister Sadiq al-Mahdi informed the Egyptian leadership of his desire to cancel the joint defense agreement. Instead, the two sides signed what became known as the Brotherhood Charter in 1987. While it did not explicitly cancel the 1976 agreement, its mechanisms have not been discussed or activated since then.

Regional and international messages

Sudanese journalist Osman Mirghani, editor-in-chief of Al-Tayar newspaper, said the Egyptian statements amounted to regional and international messages linked to recent developments and what he described as serious security threats facing Sudan.

He pointed to the expansion of the Rapid Support Forces in the Darfur and Kordofan regions in a way that threatens shared Sudanese and Egyptian national security, warning of risks of geographic fragmentation that could endanger Sudan’s unity.

Speaking to Asharq Al-Awsat, Mirghani said Egypt was, for the first time, using direct and tough language and signaling the possibility of intervention under international law in Sudan’s conflict. He said this reflected the level of Egyptian concern over the situation in Sudan.

Mirghani added that the reference to red lines was a message directed at all parties, noting that there are many influential players in Sudan.

The red lines

The first red line cited by Cairo was the preservation of Sudan’s unity and territorial integrity, preventing any tampering with its resources or those of the Sudanese people, and rejecting the secession of any part of the country. Egypt reiterated its categorical refusal to the establishment or recognition of any parallel entities, saying such moves would undermine Sudan’s unity and territorial integrity.

The statement also stressed the need to preserve Sudanese state institutions and prevent any harm to them. Egypt affirmed its full right to take all necessary measures permitted under international law, including activating the joint defense agreement between the two brotherly countries, to ensure these red lines are not crossed.

Timing of the visit

Former Sudanese Foreign Minister Ali Youssef noted the timing of Burhan’s visit to Cairo, stating that it occurred after his trip to Saudi Arabia earlier this week and following a visit by Saudi Crown Prince Mohammed bin Salman to the United States.

Youssef said the trip was part of efforts to end the war in Sudan through the Quartet mechanism, which includes Saudi Arabia, the United Arab Emirates, Egypt, and the United States.

Speaking to Asharq Al-Awsat, Youssef said Burhan briefed Egyptian President Abdel Fattah al-Sisi on the outcomes of his Saudi visit and the latest developments in Sudan.

He stated that the visit did not follow the usual ceremonial protocol and was a result of developments in the war, noting that Egypt’s security is linked to Sudan’s security. He added that Egypt is part of the Quartet, which seeks to end a war that is approaching its third year.

Military implications

Sudanese military expert Al-Muatasim Abdel Qader said activating the joint agreement would imply Egyptian intervention in various forms, including supplying weapons and ammunition or direct military involvement.

He said the provisions of the agreement obligate each army to defend the other, adding that the red lines outlined by the Egyptian presidency represented a significant step and carried major implications for the Sudanese state.

In remarks to Asharq Al-Awsat, Abdel Qader described mutual protection between the two countries as a historically rooted matter, dating back to wars Egypt fought in the last century in which Sudanese armed forces took part.

Rapid Support Forces response

Basha Tabiq, an adviser to the commander of the Rapid Support Forces, said in posts on X that Egypt’s position amounted to blatant interference, bias toward one party, and a colonial mindset that views Sudan as a backyard.

Another source aligned with the RSF said accusations against Egypt of backing the Sudanese army have persisted since the early days of the war. The source pointed to the presence of Egyptian forces at Merowe air base in northern Sudan at the start of the conflict, when several Egyptian soldiers and officers were captured before later being handed over to Cairo.

The source also cited accusations by RSF leader Mohamed Hamdan Dagalo, known as Hemedti, who said in October 2024 that the Egyptian army had carried out air strikes against his forces and supplied the Sudanese army with drones and training.

He said Hemedti renewed those accusations last June, alleging that Cairo supported the Sudanese army with aircraft flown by Egyptian pilots that bombed areas under his forces’ control, and supplied weapons and aviation fuel. Hemedti described this as a blatant aggression against the Sudanese people.

The source, who requested anonymity, said Egypt has been intervening in the war from the outset and that activating the joint defense agreement would merely formalize an existing reality.

No time to spare

Sudanese ambassador Al-Sadiq al-Maqli said Egypt is working with Saudi Arabia and the international Quartet, in coordination with the United States, to give fresh momentum to efforts on Sudan.

He said Washington is currently using soft power rather than force, which he described as an option deferred until shuttle diplomacy by US President’s senior adviser Massad Boulos is exhausted.

Speaking to Asharq Al-Awsat, Maqli said the United States fully understands the influence of Saudi Arabia and Egypt and their ability to persuade and soften the stance of Sudan’s government, which has rejected the latest US initiative.

He said Burhan currently has no time to spare, as what is unfolding in Sudan represents the world’s worst humanitarian disaster, according to the international community.

Maqli noted that Egypt, represented by Foreign Minister Badr Abdelatty, has been almost fully dedicated to making the Quartet mechanism succeed, given that the continuation of the current situation in Sudan poses a threat to Egypt’s national security.

He described Burhan’s visits to Riyadh and Cairo as short but necessary steps toward accepting the Quartet initiative, saying the Saudi visit marked a qualitative shift in the Sudanese government’s official position.

He added that Sudan’s foreign ministry later expressed Port Sudan’s readiness to cooperate with President Donald Trump, his secretary of state, and Boulos in efforts to achieve peace in Sudan, predicting imminent developments that could lead to a major breakthrough in the crisis.


Iraq Negotiates New Coalition Under US Pressure

Election workers count ballots as they close a polling station, during the parliamentary elections in Baghdad, Iraq, Nov. 11, 2025. (AP)
Election workers count ballots as they close a polling station, during the parliamentary elections in Baghdad, Iraq, Nov. 11, 2025. (AP)
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Iraq Negotiates New Coalition Under US Pressure

Election workers count ballots as they close a polling station, during the parliamentary elections in Baghdad, Iraq, Nov. 11, 2025. (AP)
Election workers count ballots as they close a polling station, during the parliamentary elections in Baghdad, Iraq, Nov. 11, 2025. (AP)

More than a month after Iraq's parliamentary elections, the country's top leaders remain locked in talks to form a government while facing pressure from Washington to exclude Tehran-backed armed groups.

Amid seismic changes in the Middle East, where new alliances are forming and old powers waning, Iraqi leaders face a daunting task: navigating relations with US-blacklisted pro-Iranian factions.

The US has held significant sway over Iraqi politics since leading the 2003 invasion that ousted long-time ruler Saddam Hussein.

But another specter also haunts Iraq's halls of power: Washington's arch-foe, Iran.

Iraq has long been caught between the two, with successive governments negotiating a delicate balance.

Now, after November's election, Washington has demanded the eventual government must exclude Iran-backed armed groups and instead move to dismantle them, Iraqi officials and diplomats told AFP.

A State Department spokesperson, speaking on condition of anonymity, said: "Iraqi leaders well know what is and is not compatible with a strong US-Iraq partnership".

Washington, the spokesperson said, "will continue to speak plainly to the urgency of dismantling Iran-backed militias".

But some of these groups have increased their presence in the new chamber and have joined the Coordination Framework, an alliance of Shiite parties with varying ties to Iran and which holds the majority.

For weeks, the Coordination Framework has been embroiled in talks to nominate the next prime minister.

"The US has put conditions that armed factions should not be part of the new government," a senior Iraqi official said. The factions must disarm and "sever ties with Iran's Revolutionary Guard," he added.

In recent tweets, the US special envoy to Iraq, Mark Savaya said that Iraqi leaders are at a "crossroads".

Their decision "will send a clear and unmistakable signal to the United States... that Iraq is ready to claim its rightful place as a stable and respected nation in the new Middle East.

"The alternative is equally clear: economic deterioration, political confusion, and international isolation," Savaya said.

The US has blacklisted as "terrorist organizations" several armed groups from within the pro-Iran Popular Mobilization Forces, a former paramilitary alliance now integrated into the armed forces.

They are also part of the Iran-backed so-called "Axis of Resistance" and have called for the withdrawal of US troops -- deployed in Iraq as part of an anti-ISIS coalition -- and launched attacks against them.

Most of these groups hold seats in parliament and have seen their political and financial clout increase.

The Asaib Ahl al-Haq faction, led by Qais al-Khazali, who is a key figure in the Coordination Framework, won 27 seats in the latest election, making it harder to exclude it from the government.

A potential compromise is to deny it a key portfolio, as in the current government.

"The US has turned a blind eye before, so they might after all engage with the government as a whole but not with ministries held by armed groups," a former Iraqi official said.

Other blacklisted groups are:

+ Kataeb Hezbollah, one of the most powerful armed groups, supports a parliamentary bloc (six seats).

+ Kataeb Sayyid al-Shuhada, Kataeb Imam Ali and Harakat Ansar Allah al-Awfiya.

+ The al-Nujaba movement is the only group that has steered clear of elections.

Iraq has its economic growth to worry about.

After decades of turmoil, it has only begun to regain a sense of normalcy in recent years.

Washington has already imposed sanctions on several Iraqi entities and banks, accusing them of helping Tehran evade sanctions.

But Iraqi leaders hope for greater foreign investments and support partnerships with US companies.

The most striking endorsement came from Khazali, an opponent of the US military presence who now argues that it would be in Baghdad's interest for major US companies to invest.

Since the Israel's war with Hamas in Gaza began in October 2023, Iraq has remained relatively unscathed by the turmoil engulfing the Middle East.

Iraqi armed groups did launch attacks on US troops and largely unsuccessful ones on Israel. Washington responded with heavy strikes, and the attacks have long since halted.

Iraq remained the only close regional ally of Iran to stay out of Israel's crosshairs.

So far, the US has acted as a buffer, helping to prevent an Israeli attack, but Iraqis have been warned of strikes against the armed groups, multiple sources said.

But as the presence of American forces dwindles, fears are growing.