President Donald Trump is set to welcome Iraq’s new prime minister, Ali al-Zaidi, to the White House on Tuesday after championing the political newcomer for the country’s top job — despite al-Zaidi previously chairing a bank swept up in a U.S.-backed crackdown over alleged financial flows to Iran.
Before entering politics, al-Zaidi chaired Al-Janoob Islamic Bank, one of several Iraqi banks that the country’s central bank barred in 2024 from conducting U.S. dollar transactions. The restrictions followed pressure from Washington to curb money laundering and prevent funds from reaching Iran through Iraq’s banking system.
The sanctions did not target al-Zaidi personally, and there have been no public allegations that he engaged in wrongdoing. But his leadership of one of the affected banks is likely to draw attention as he meets Trump.
Al-Zaidi, a businessman with no previous political experience, emerged as Iraq’s compromise prime minister after months of political deadlock following last year’s parliamentary elections. When he was named prime minister-designate in April, Trump hailed the appointment on social media as the “beginning of a tremendous new chapter between our Nations — Prosperity, Stability, and Success like never seen before.”
Trump had already played an unusually public role in Iraq’s leadership battle.
When Iraq’s powerful Coordination Framework, a coalition of Iran-aligned Shiite parties, backed former Prime Minister Nouri al-Maliki to return to office, Trump openly opposed the move, warning he would cut U.S. aid if Maliki was selected. Trump argued Maliki was too closely aligned with Tehran, writing that Iraq had “ZERO chance of Success, Prosperity, or Freedom” under his leadership.
Iran is expected to dominate Tuesday’s talks.
Washington has been pressing Baghdad to dismantle powerful Iran-backed militias that operate across Iraq. Several of those groups launched attacks on U.S. military bases and diplomatic facilities after the United States and Israel entered direct conflict with Iran earlier this year.
The Iraqi government has ordered non-state armed groups to disarm by September, but some of the country’s most powerful militias have publicly rejected the deadline.
A Trump administration official said the United States will base future policy toward Iraq on the government’s progress in confronting the militias.
Renad Mansour, director of the Iraq Initiative at Chatham House, said Washington is expected to press al-Zaidi to accelerate disarmament. But he said Iraq’s leader is likely to argue he needs greater U.S. intelligence, technical and military support to avoid triggering retaliation from the armed groups.
Since taking office, al-Zaidi has made fighting corruption a signature issue, overseeing raids and arrests targeting dozens of current and former lawmakers and government officials, including several linked to former Prime Minister Mohammed Shia al-Sudani.
Al-Zaidi arrived in Washington with a delegation of senior officials and business leaders. His office said the visit is aimed at expanding economic ties, attracting U.S. investment and increasing the role of American companies in infrastructure and energy projects in the oil-rich country.
