BAGHDAD—Iraqi authorities moved Thursday to conduct a full manual recount of 12 million ballots in recent national elections, threatening to slow down the formation of a government after the victory of an anti-American cleric upended the political establishment.
The recount effort, if allowed by Iraq’s Federal Supreme Court, would deepen political uncertainty and hamper Iraq’s ability to deal with major challenges as it emerges from more than three years of war with Islamic State. Those challenges include rebuilding war-ravaged...