Almost half the country's parliament does not agree with the American troop expulsion, while the majority bloc voted in favour of it on Sunday.
Parliament approved the resignation without a vote, as protests continued across the country. At least one protester was killed in anti-government demonstrations in Baghdad and Iran's Najaf consulate was set ablaze for a second time on Sunday.
UN proposes reform plan, backed by Iraq's Grand Ayatollah Ali Sistani, to end violence that has killed more than 300.
Police and medics say Iraqi forces shot dead three anti-government protesters, adding to the hundreds killed in weeks of unrest, as a rights group warned a deadly crackdown could spiral into a "bloodbath."
Officials say three protesters were shot dead while the fourth one was killed by a tear gas canister. About 108 demonstrators were wounded in the clashes as embattled PM Adil Abdul Mahdi calls for "return to normal life."
Iraqi authorities reportedly cut off Internet access for nearly all of Baghdad and the southern part of the country on Tuesday as the latest wave of protests resulted in casualties.
Tens of thousands of Iraqis have been protesting, mostly in Baghdad and southern regions, since last month, demanding sweeping change to the political system established after the 2003 US-led invasion.
The curfew provides cover for security forces to clear the square but demonstrators say they intended on going nowhere.
Iraqis have launched two waves of mass protests this month, calling for the resignation of a government they blame for corruption, economic mismanagement and poor public services.
More than 4,000 people have also been injured since the protests against chronic unemployment, poor public services and widespread corruption erupted in the capital on Tuesday.
Protests broke out on Tuesday across several Iraqi governorates demanding an improvement in living conditions and an end to corruption.
If history is anything to go by then Saudi Arabia's executions of thirty-seven Saudis, most believed to be Shia, could incite anger in the region and a response from Iran.
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