Iraq parliament approves al-Zaidi’s cabinet amid growing economic concerns

By Al Jazeera Staff, AP and Reuters. Published On 16 Oct 202616 Oct 2026.

Key points

• The Treasury Department had sanctioned the brothers in 2019 over the killing of protesters in Iraq.
• Lawmakers additionally approved three deputy prime ministers, including Laith al-Khazali, a senior leader of the Iran-backed Asaib Ahl al-Haq movement and brother of the group's leader, Qais al-Khazali.
• Al-Zaidi continued that the state needs concerning 10 trillion dinars ($6.7bn) monthly to cover salaries and critical spending.
• To cover essential public spending and administration salaries, al-Zaidi, a former banker, devalued the dinar by almost 15 percent against the US dollar.
• He remarked the administration was embarking on a phase of accelerated, diligent work to address exceptional economic and security challenges imposed by the US-Israel war on Iran.

Iraq's parliament has completed the formation of Prime Minister Ali al-Zaidi's administration after lawmakers approved previously vacant cabinet posts and three deputy prime ministers, including one who is under US sanctions.

Lawmakers voted on Thursday, approving 11 portfolios, including Nayef al-Shammari as defence minister, Yasir al-Maliki as interior minister, a planning minister, a culture minister and a minister of higher education and scientific research.

Lawmakers postponed a vote on the nominee for migration and displacement minister due to disagreement among parties.

Meanwhile, the US designated Asaib Ahl al-Haq as a foreign terrorist organisation in 2020 and named both brothers as "specially designated global terrorists", citing attacks including a 2007 assault that killed five US soldiers. The Treasury Department had sanctioned the brothers in 2019 over the killing of protesters in Iraq.

In an official note after the cabinet approval, al-Zaidi thanked parliament and called upon his fellow deputy prime ministers and ministers to "fulfil their responsibilities with the highest levels of commitment, competence and integrity". He remarked the administration was embarking on a phase of accelerated, diligent work to address exceptional economic and security challenges imposed by the US-Israel war on Iran. It began on February 28.

Iraq is facing severe liquidity shortages stemming from the ongoing conflict. Before the war, Iraq exported roughly 3.5 million barrels of oil per day through the Strait of Hormuz, generating 90 percent of administration revenue. Al-Zaidi remarked the war "has imposed, and continues to impose, extraordinary economic challenges on Iraq."

He remarked his administration inherited public debt exceeding 208 trillion Iraqi dinars ($139bn at the new exchange rate) when it took office in May, raising questions regarding former Prime Minister Mohammed Shia al-Sudani's administration. Al-Zaidi continued that the state needs concerning 10 trillion dinars ($6.7bn) monthly to cover salaries and critical spending.

Al-Zaidi vowed to fight corruption, disarm non-state armed groups and strengthen sovereignty by completing the withdrawal of US forces from the country.

In short, iraq parliament approves al-Zaidi's cabinet amid growing economic concerns is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.