Iraq Elects New Speaker, Ends Months Long Political Deadlock

Iraq’s new parliament elected Haibat al Halbousi as speaker at its opening session on December 29, ending a months long impasse that followed the November 11 national election. Official tallies showed al Halbousi received 208 votes in the session, although counts of total ballots cast differed across accounts, with one tally showing 309 legislators present and another citing 283 total votes. The result allows the legislature to move to the next constitutionally mandated steps in forming a government.

Parliament also chose Adnan Feyhan of Babel as first deputy speaker with 177 votes. Feyhan is affiliated with Asaib Ahl al Haq, an Iran aligned Shiite group that is subject to United States sanctions and whose armed wing is led by Qais al Khazali, also sanctioned. The composition of the new leadership, a Sunni speaker and a Shiite deputy with these ties, underscores the delicate balance of Iraq’s muhasasa power sharing system and is likely to shape both domestic bargaining and foreign responses in coming weeks.

Under Iraq’s constitutional and customary sequence the newly seated parliament must elect a president within 30 days. The president then tasks the largest Shiite parliamentary bloc with nominating a prime ministerial candidate who will form a cabinet. Political leaders identified the Shia Coordination Framework as the largest Shiite bloc expected to supply a candidate under convention, though negotiations over portfolios and key ministries are anticipated to be protracted.

The immediate significance of the votes is practical. For months budget approvals, senior appointments and policy decisions have been stalled. Passing the annual budget is particularly urgent because Iraq’s public finances are heavily dependent on oil revenues. Oil accounts for the vast majority of export earnings and provides a large share of government revenue, making timely budget passage essential for paying civil service salaries, funding subsidies and meeting external obligations. Delays have strained public services and introduced uncertainty for foreign contractors and investors evaluating projects in the oil and power sectors.

Markets and external partners will watch how quickly the new parliament moves to finalize the presidency and to empower a prime minister to present a budget and economic program. Political stability would likely ease pressures on the Iraqi dinar and improve sentiment for sovereign debt and contract negotiations, while renewed confrontation among blocs or actions perceived to empower militia linked actors could prompt caution among creditors and international firms.

Longer term the episode highlights persistent structural challenges. The muhasasa arrangement that apportions top posts by sect and ethnicity has repeatedly produced fragmented coalitions and contingent agreements that can stall governance. Meanwhile the presence of Iran aligned political forces inside parliament complicates Iraq’s balancing act between regional patrons and Western partners, and could limit the scope for fiscal reform that might reduce reliance on oil.

The December 29 session is therefore more than a procedural milestone. It is the opening of a consequential bargaining period in which leadership choices will determine whether Iraq can restore fiscal certainty, advance stalled reforms and attract the investment needed to stabilize its economy.