Iraq retracts terror listing of Hezbollah and Houthis after political uproar

Iraq has retracted a decision that placed Lebanon’s Hezbollah and Yemen’s Houthis on its terrorism list after the publication of the designation in the Iraqi Gazette sparked political uproar and allegations of foreign pressure.

The listings appeared in issue No. 4848 of the Gazette and were based on Decision No. 61 from the Committee for the Freezing of Terrorists’ Assets, which ordered the freezing of both groups’ financial assets, Arab media reports.

The committee later said the version published had been released “without revision” and would be corrected. It explained that the list was issued under UN Security Council requirements and at Malaysia’s request, and that it included entities with “no connection to any terrorist activity” because it was printed before final editing. An amended version is expected.

The explanation was rejected by several political figures linked to pro-Iran factions. Lawmakers accused the government of acting under American pressure and dismissed claims that the listings resulted from clerical error. Critics argued the move could set a precedent for designating local Iraqi groups, given the country’s reliance on dollar transactions and its financial system’s exposure to sanctions.

Government sources insisted the measure was mainly technical and tied to international financial obligations rather than politics, saying it would not have political consequences. However, the initial publication triggered a sharp backlash, with activists and politicians accusing the government of yielding to external pressure and undermining groups associated with the “axis of resistance.”

A political source familiar with the decision said it had been issued about a month earlier and involved multiple state institutions. He described it as an economic step similar to previous measures that had not affected the operations of armed factions inside or outside Iraq.

By Tamilla Hasanova