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The nomination of Mustafa al-Kadhimi as Iraqi prime minister was the result of a horse trade between the US and Iran in which Tehran agreed to back the former intelligence chief in return for an unfreezing of some of its assets targeted by sanctions, senior Iraqi political sources have told Middle East Eye.

The US policy of exerting "maximum pressure" on Iran will not change, but the US agreed to de-escalate militarily in the Gulf and to "look the other way" if a third-party country in Europe released some of the Iranian money frozen when sanctions were applied, the Iraqi sources said.

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