U.S. envoy Mark Savaya is set to visit Iraq with a high-stakes agenda focused on curbing Iran-backed militias, reforming the banking sector, cutting off illicit financing, and influencing the formation of the next government to strengthen state authority and ensure stability.

Shiite forces within Iraq’s ruling Coordination Framework have reached an impasse over selecting a new PM, with both Nouri al-Maliki and current PM Mohammed Shia’ al-Sudani firmly backing their own bids.

In a fresh escalation on Iraq’s crowded political stage, Iran-linked militias have launched a fierce campaign against the U.S. president’s envoy to Baghdad, Mark Savaya, going as far as issuing direct threats.

U.S. officials are pressuring Iraq’s Coordination Framework to form a government free of armed factions and strengthen state institutions amid regional stakes.

Iraq’s Shiite political forces have signed an agreement to form the largest parliamentary bloc after the Reconstruction and Development Coalition led by Mohammed Shia’ al Sudani joined the Coordination Framework.