BAGHDAD (Dispatches) -- Iraq’s parliament voted Thursday to complete Prime Minister Ali al-Zaidi’s cabinet, approving Laith al-Khazali—a figure under U.S. sanctions and brother of Asaib Ahl al-Haq leader Qais al-Khazali—as one of three deputy prime ministers. 
Laith al-Khazali was detained by U.S. forces in 2007 over a Karbala attack that killed five American soldiers and was sanctioned in 2019. His elevation drew sharp Republican criticism. 
“It is outrageous but sadly not shocking that he has been appointed deputy PM of Iraq,” Representative Joe Wilson wrote on X.
The appointment completes a cabinet left vacant since May, filling posts including interior, defense, and culture ministers. Zaidi, who took office in April after being nominated by President Nizar Amedi, said Iraq is “embarking on a phase of accelerated, diligent work”.
Zaidi’s rise followed direct U.S. intervention to block former Prime Minister Nouri al-Maliki from returning to power. The Coordination Framework, an alliance of Shia factions, had initially backed Maliki, but an ultimatum from President Donald Trump forced Iraqi leaders to seek an alternative.
According to multiple reports, Washington threatened to cut off Iraq’s access to oil revenues held in Federal Reserve accounts and suspend security assistance if Maliki returned. U.S. envoy Tom Barrack delivered the message directly: “Forming a government that reflects balance requires your withdrawal.”
Iraqi oil exports account for roughly 90% of budget revenues, and the Federal Reserve functions as the central clearinghouse for these funds. By threatening to restrict access, Washington effectively held Iraq’s financial lifeline hostage to force a leadership change.
An Iraqi parliament member described the intervention as “a clear violation of national sovereignty,” noting that previous governments’ economic mismanagement left Iraq vulnerable to U.S. financial coercion.
The Trump administration’s intervention extended beyond blocking Maliki. According to Foreign Policy in Focus, Washington is pursuing a “new imperial scheme” to open Iraq’s oil industry to American companies. Trump himself said in July: “We’re going to be taking out a lot of oil”. 
Over $60 billion in new business deals were signed, with Chevron and ConocoPhillips entering Iraq’s energy sector.
The White House also suspended Iraqi oil revenue transfers and halted security programs during the U.S. war on Iran, further tightening the economic vise.
The U.S. reportedly gave tacit approval for anti-terror factions in his cabinet after Zaidi promised to advance disarmament plans and guarantee no attacks on U.S. interests.
As U.S. troops completed their withdrawal from Erbil on September 30, Washington’s leverage shifted from military presence to financial control. 
Iraq’s sovereignty remains constrained by an economy still tethered to American financial institutions—a reality that the cabinet vote did little to change.