Coordination Framework Scrambles for "Acceptable" Candidate as U.S. Sanctions Threat Loom Over Baghdad

ERBIL (Kurdistan24) – The protracted and politically sensitive search for Iraq's next Prime Minister has entered a critical new phase, with the ruling Coordination Framework facing unprecedented pressure from Washington to select a leader capable of stabilizing relations with the West or risk crippling economic consequences.

According to sources within the Shiite alliance, the coalition’s options have narrowed significantly under the weight of strict American conditions, forcing a recalibration away from candidates with deep ties to Iran-aligned militias toward figures deemed "acceptable" on both the domestic and international stage. This shift comes as fears mount that the United States is preparing a severe sanctions package that could target Iraq’s financial lifelines, including its oil revenue accounts.

The urgency within the Coordination Framework reflects a recognition that the geopolitical landscape has shifted dramatically.

Anwar Musawi, a political observer tracking the negotiations, told Kurdistan24 that the alliance is currently in a "sensitive situation" due to the credible risk of severe U.S. sanctions. Musawi indicated that the potential punitive measures this time could be devastatingly impactful, reaching the level of "closing the account of Iraq's oil revenues and blocking its assets in America."

Such a move would effectively paralyze the Iraqi economy, which relies almost entirely on oil sales processed through the U.S. Federal Reserve system.

Faced with this existential economic threat, the Framework appears to be adjusting its criteria for the premiership.

Sabah Agayli, a figure close to the coalition’s leadership, provided insight into the internal deliberations, stating that while the candidate will still be someone close to the Framework, the priority is to find an individual who is "far from any political problem and is an acceptable person on both the domestic and external levels."

Agayli emphasized that this strategic pivot is driven by a desire to ensure that relations with America remain stable, acknowledging that the survival of the government depends on avoiding Washington's wrath.

"Designating the Prime Minister of Iraq this time will not be an easy task," Agayli noted, adding a stark assessment of the new reality: "The American side will be the foundation of that work in designating the Prime Minister this time, not the Iranian side, which, according to experts, was the case previously."

This recalibration follows a series of forceful warnings from the Trump administration.

As reported previously by Kurdistan24, Gabriel Soma, a member of the advisory board to U.S. President Donald Trump, issued a blunt ultimatum earlier this week, stating that the continued proliferation of armed militias operating outside state control could trigger "severe action," including economic embargoes.

Soma made it clear that the U.S. demand for disarmament is non-negotiable and that Washington is prepared to use its financial leverage to enforce compliance. The potential freezing of Iraq’s oil revenues aligns with Soma’s warning that the U.S. possesses tools to impose "some sort of penalties on Iraq" if the government fails to rein in rogue factions.

The pressure is further compounded by reports that the U.S. Treasury Department is finalizing a new round of sanctions targeting a broad spectrum of Iraqi figures.

Government sources have confirmed to Al-Araby al-Jadeed that Washington is preparing to blacklist politicians, businessmen, and companies involved in funding armed groups linked to Iran. These measures are viewed as a direct response to recent attacks on energy infrastructure, including gas and oil fields, and are part of a wider effort to curb money laundering.

A diplomat from the Iraqi Foreign Ministry confirmed that the list includes senior members of armed factions who also hold seats in parliament, signaling that political cover will no longer shield individuals from U.S. financial interdiction.

Aid Hilali, a political analyst close to the Iraqi Prime Minister, told Kurdistan24 that these impending sanctions are widely expected within political circles and will likely target figures in the energy transport and logistics sectors.

"The United States has signaled through several channels that these sanctions will form part of a new approach aimed at restructuring Washington’s relationship with Baghdad," Hilali said. He warned that the scope of the measures is significantly wider than previous rounds, raising concerns about the potential political and security fallout.

Nizar Haider, head of the Iraqi Media Center in Washington, added that the U.S. may actively oppose the appointment of individuals aligned with external actors to senior positions in the next government.

This stance directly impacts the Coordination Framework's selection process, effectively vetoing hardline candidates who might otherwise have been favored by Tehran. With the U.S. Congress also moving to condition security aid on the reduction of Iranian influence, the message from Washington is unambiguous: the next Prime Minister must be a partner in sovereignty, not a proxy for militias.

The confluence of these factors—the threat of oil revenue freezes, the looming sanctions on political elites, and the explicit U.S. demand for disarmament—has forced the Coordination Framework into a corner. As they search for an "acceptable" candidate, the leaders of the Shiite bloc are navigating a minefield where a misstep could lead not just to political failure, but to the economic collapse of the state they seek to govern.

Kurdistan24 correspondent Seif Ali contributed to this report.