Terror-designated group figure joins Zaidi cabinet as Iraq parliament approves ministers amid growing economic concerns
Parliament fills key government posts
Lawmakers voted on Thursday to approve 11 ministerial portfolios, including defence, interior, planning, culture, and higher education and scientific research. Nayef al-Shammari was approved as defence minister, while Yasir al-Maliki was approved for the interior post.
The vote completed the formation of Prime Minister Ali al-Zaidi’s government, apart from the migration and displacement ministry. Parliament postponed that appointment because parties disagreed over the nominee.
![A man counts Iraqi dinars at a currency exchange market in Baghdad on October 7, 2026 [Ahmad al-Rubaye/AFP]](https://www.aljazeera.com/wp-content/uploads/2026/10/AFP__20261007__D2HA4JZ__v1__HighRes__IraqIranUsIsraelWarEconomyBank-1792108979.jpg?w=770&resize=770%2C513&quality=80)
Deputy faces US sanctions
Parliament also approved three deputy prime ministers, among them Laith al-Khazali. He is a senior leader of Asaib Ahl al-Haq and the brother of its leader, Qais al-Khazali.
The United States designated the group a foreign terrorist organisation in 2020 and designated both brothers as global terrorists. The Treasury Department had sanctioned them in 2019 over the killing of protesters in Iraq; US authorities also cited a 2007 attack that killed five US soldiers.
War strains Iraq’s finances
Al-Zaidi said the government must confront exceptional economic and security pressures linked to the US-Israel war on Iran, which began on February 28. Iraq is experiencing serious liquidity shortages as the conflict continues.
Before the war, Iraq shipped about 3.5 million barrels of oil each day through the Strait of Hormuz, with oil providing 90 percent of government revenue. Al-Zaidi said the conflict had brought extraordinary economic difficulties, and he devalued the dinar by nearly 15 percent against the US dollar to help pay for public needs and salaries.
Debt and government priorities
Al-Zaidi said his government took office in May with public debt above 208 trillion Iraqi dinars, equal to $139bn at the new exchange rate. He said monthly spending needs are about 10 trillion dinars, or $6.7bn, for salaries and critical services, raising questions about the previous administration led by Mohammed Shia al-Sudani.
After parliament’s vote, al-Zaidi thanked lawmakers and urged ministers and deputies to serve with commitment, competence and integrity. He also pledged to tackle corruption, disarm armed groups outside the state, and reinforce Iraq’s sovereignty by completing the withdrawal of US forces.
Key points
- Parliament approved 11 ministers and three deputy prime ministers, but delayed the migration and displacement appointment.
- Laith al-Khazali, an approved deputy prime minister, is a senior leader of a US-designated terrorist organisation.
- Iraq faces liquidity shortages after conflict disrupted oil exports that once supplied 90 percent of government revenue.
- Al-Zaidi cited debt above 208 trillion dinars and monthly spending needs of about 10 trillion dinars.