Mohammed Tawfiq Allawi was appointed to the role after squabbling political parties failed to name a candidate in the two months since the former minister was ousted by popular protests.

The State Department flatly dismissed Iraq's request, saying U.S. troops are crucial for the fight against the Islamic State group and it would not discuss removing them.

"Despite the internal and external difficulties that we might face, it remains best for Iraq on principle and practically," Abdul Mahdi told parliament in a speech.

Iraq has been roiled by protests since Oct. 1 in which demonstrators have taken to the streets to decry corruption, poor services and a lack of jobs. They have also called for an end to the political system imposed after the 2003 U.S.-led invasion.

President Barham Salih said in a statement issued by his office that he would not name the governor of the southern Basra province, Asaad al-Eidani, as the country's next prime minister "to avoid more bloodshed and in order to safeguard civil peace."

Security and hospital officials say two protesters were killed and 15 wounded early Saturday by security forces who fired live rounds at them in the holy city of Najaf, in southern Iraq.

At least 400 protesters have died since Oct. 1, when thousands of Iraqis took to the streets to decry corruption, poor services and lack of jobs.

In a statement, Prime Minister Adel Abdul-Mahdi called for markets, factories, schools and universities to reopen after days of protests in the capital and across the mostly Shiite south.

The Interior Ministry said the toll was now 104 killed and more than 6,000 wounded in violence since Tuesday but denied government forces had shot directly at demonstrators. T

While the rallies began peacefully on Tuesday, the situation has grown increasingly chaotic and violent.