Analysis-Iraq's mercurial Moqtada Sadr risks isolation with political retreat

FILE PHOTO: Iraqi Shi'ite cleric Moqtada al-Sadr delivers a sermon to worshippers at the Kufa mosque near Najaf, Iraq November 4, 2022 REUTERS/Alaa Al-Marjani/File Photo

BAGHDAD (Reuters) - Moqtada al-Sadr, the Muslim Shi'ite cleric who dominated Iraqi politics for two decades, seems isolated for now after his move to step back from formal politics emboldened his Iranian-backed rivals and raised the prospect of fresh factional flare-ups.

Iran, which already controls dozens of heavily-armed Shi'ite militias in its oil-producing neighbour, may now have an opportunity to expand its influence over Iraq's government, a worst case scenario for the United States and its allies.