Charles Krauthammer joined Shannon Bream on "Special Report" Thursday and said that with embattled Iraqi prime minister Nouri al-Maliki finally stepping aside, President Obama's "bluff is called" in Iraq.

Although the new nominee for prime minister, Haider al-Abadi, was educated in Britain and seems to be a more accommodating chap,” according to Krauthammer, we don’t know who he really is or what he’s going to do.

"Assuming [al-Abadi] is going to reach out to Sunnis, then the bluff is called," Krauthammer said, explaining that Obama said the U.S. is waiting for the new Iraqi government before getting more involved.

With the arrival of the new government, plus the dangerous rise of ISIS and growing threats to our strategic allies in Kurdistan, Obama will feel mounting pressure for the U.S. to be present in Iraq.

Krauthammer concluded with the million dollar question: "What's he going to do?"

Watch the clip above.