Iraq’s newly named president, Barham Salih, has chosen the independent Shia politician Adel Abdul-Mahdi to be the next prime minister and form a government.

Legislators claim the move will address the widespread civic unrest in Iraq, and ease standoffs across the country that have brought governance to a standstill, nearly five months after the national election.

Abdul Mahdi, 76, a former oil minister, has been given 30 days to assemble a cabinet to be approved by Iraq’s parliament. The political jockeying involved in appointing him is likely to continue and intensify in the coming weeks as regional patrons vie for influence in bitterly contested portfolios that rival the premiership as power bases in the country’s complex political landscape.

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Iran and the US, which remain instrumental in Iraqi affairs, had been robustly pushing their own candidates in the lead up to Tuesday’s announcement.

Rivalry between Tehran and Washington has played out in Iraq over the 15 years since the US-led invasion to oust Saddam Hussein. However, it has become particularly acute during the Trump administration, with its intense focus on countering Iranian activities in the Arab world. Baghdad remains a central area of Iranian influence and a political and cultural battleground between groups aligned to each side.

Salih, 56, a Kurdish leader, was named as Iraq’s president a day ago, on Tuesday. Abdul Mahdi, a compromise candidate, edged out as prime minister the US favourite and incumbent leader, Haidar al-Abadi, and Iran’s two options, the former prime minister Nouri al-Maliki, and Hadi al-Ameri.

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The presidency remains largely ceremonial in Iraq, with most executive power resting with the prime minister. Abdul Mahdi is the first leader since 2005 not to be aligned to the Shia Islamic Dawa party, which has taken a central role in the country’s post-war affairs. He has cordial relations with the US and his appointment was not opposed by Iran.

Under Iraq’s postwar constitution, the president must be a Kurd, the prime minister a Shia, and the speaker of parliament a Sunni. The divisions of authority give the three dominant sects a stake in the country’s affairs. However, power is often bitterly contested along sectarian lines leading to regular governance breakdowns and a long list of grievances – including complaints of rampant corruption, sclerotic services and a bloated, inefficient public sector.

Successive Iraqi governments have failed to address enduring issues, which were largely eclipsed over the past four years as the country’s security forces battled large-scale insurgency by Islamic State (Isis).

Protests about services have rumbled through the southern city of Basra throughout the summer and had led to growing acrimony among residents who claim that an unaccountable political class has prospered while their living standards have plummeted.

Tensions with the Kurds of northern Iraq also remain high, with Kurdish leaders insisting Baghdad needs to honour earlier agreements about revenue sharing from oil proceeds, as well as restore the semi autonomy which was diminished after the Kurds launched a failed push to control the northern oil city of Kirkuk.