What’s Next as Iraq Moves to End Deadlock?

Iraqi lawmakers have elected a new president who swiftly named a prime minister in the hope of ending a year of political gridlock and deadly violence.

But major challenges lie ahead for the crisis-hit nation.

How will government talks play out?

Iraq's parliament, dominated by the pro-Iran Coordination Framework of Shiite factions, elected on Thursday a new president, 78-year-old Kurdish former minister Abdul Latif Rashid.

The new head of state moved immediately to task Shiite politician Mohammad Shia al-Sudani with forming a government, capping a whole year of deadlock between major parties since Iraq last went to the polls in October 2021.

In multi-ethnic, multi-confessional Iraq, where political alliances and coalitions constantly shift, divisions between feuding factions might resurface and complicate Sudani's efforts in the 30 days afforded to him to form a government capable of commanding a majority in parliament.

In the past, constitutional deadlines have been routinely missed amid protracted political wrangling.

"Once we start discussing who becomes minister, but even more critically who gains more leverage over the senior civil service, government agencies, state coffers -- that's when we will continue to see the fragmentation and stalemate play out," said Renad Mansour of British think-tank Chatham House.

He explained that Iraq is headed for "another power-sharing government", where political parties will "try and divide the country's wealth".

And the stakes are high. A colossal $87 billion in revenues from oil exports are locked up in the central bank's coffers.

The money can help rebuild infrastructure in the war-ravaged country, but it can only be invested after lawmakers approve a state budget presented by the government, once formed.

What will Sadr do?

The future government's hands may be tied by influential Shiite cleric Moqtada Sadr, capable of mobilizing tens of thousands of his supporters with a single tweet.

In June, he had ordered the 73 lawmakers in his bloc to resign, leaving parliament in the hands of the rival Coordination Framework, which now controls 138 out of 329 seats in the legislature.

This pro-Iranian alliance includes the political arm of the former paramilitary Popular Mobilization Forces (PMF), as well as Sadr's longtime rival, former prime minister Nouri al-Maliki.

Political analyst Ali al-Baidar noted the Sadrist movement has kept uncharacteristically "quiet".

It may be that their leader has been "giving the political forces a chance", but it could also be the result of "an agreement offering the movement some" government positions in return for their tacit approval of Sudani's nomination, Baidar said.

Tensions between the two rival Shiite camps boiled over on August 29 when more than 30 Sadr supporters were killed in clashes with Iran-backed factions and the army in Baghdad's Green Zone, which houses government buildings and diplomatic missions.

"It remains a precarious state of affairs," Mansour said.

"Sadr will remain on the margins of the political scene, trying to disrupt and use protests to replace the political capital" he lost in parliament, the researcher added.

Sadr is "hoping to force an early election using controlled instability as he always has, to maintain his power and leverage in negotiations.

"But mistakes in the past few months have... put him in a difficult bargaining position," Mansour continued.

Is there hope for change?

Political analyst Baidar said the "consensus" on Rashid's appointment means a government will be formed relatively easily, but stressed the "colossal tasks" ahead.

Nearly four out of 10 young Iraqis are unemployed and one-third of the oil-rich country's population of 42 million lives in poverty, according to the United Nations.

Prime minister-designate Sudani vowed on Thursday to push through "economic reforms" that would revitalize Iraq's industry, agriculture and private sector.

He also promised to provide young Iraqis "employment opportunities and housing".

According to Baidar, a "growing" global interest in Iraqi politics -- specifically from Washington, Paris and London -- could "force politicians to perform better".

"While Iraq is by no means a poor country, private and partisan interests conspire to divert resources away from critical investment in national development," UN envoy Jeanine Hennis-Plasschaert told the Security Council last week.

"Iraq's political and governance system ignores the needs of the Iraqi people," she charged.

"Pervasive corruption is a major root cause of Iraqi dysfunctionality. And frankly, no leader can claim to be shielded from it."

A pessimistic Mansour said "public life will remain as it is".

"People will still not have their basic rights, water, healthcare, electricity."

As the Israeli-Iranian conflict intensifies, many Lebanese, particularly in Hezbollah strongholds such as South Lebanon, the Bekaa Valley, and Beirut’s southern suburbs, are bracing for the worst.

The possibility of Hezbollah’s involvement in the war has heightened fears of a broader escalation that could drag Lebanon into the conflict once again.

In Beirut’s southern suburb of Hayy al-Sellom, 44-year-old Hassan has already packed a bag, as have his siblings. He says they are waiting for the moment they might have to leave, hoping war doesn’t reach their doorstep.

Similarly, Abir, a resident of Burj al-Barajneh, says her family spends most of their time following the news. With an elderly and sick mother at home, she is worried about how they would evacuate if needed and has already begun looking for a temporary alternative place to stay.

The atmosphere in the southern suburbs is tense but quiet. Commercial activity has dropped noticeably, with shop owners reporting a decline in sales of fresh goods. Many families have already relocated to safer areas in the Bekaa and South Lebanon, especially after the school year ended.

Amina, a homemaker in her forties who lives near the airport road, is one of them. She plans to move to her village with her daughter while her husband remains in Beirut for work. She worries about the possibility of an Israeli strike near her home, which has already been targeted multiple times since the last ceasefire in November. Even without open war, she fears a sudden strike might occur nearby.

Still, not everyone is ready to leave. Kawthar, 30, says her family will stay put unless evacuation becomes absolutely necessary. She notes that in view of her limited financial means, moving isn’t a viable option. Despite the stress and constant presence of Israeli drones overhead, they are trying to maintain a sense of normalcy.

Outside Beirut, the fear is just as real. Mustafa, 77, from Bint Jbeil, says the South has been under near-daily fire, and any new war would only worsen an already fragile situation. He fears Hezbollah could be drawn into battle under Iranian pressure, especially if the US becomes involved.

In the Bekaa, residents like Hussein from Hermel echo similar concerns. Having homes in both Hermel and the southern suburbs - areas frequently targeted - he asks the question on everyone’s mind: Where would we go this time?

What’s Next as Iraq Moves to End Deadlock?