Iraq retracts decision to designate Hezbollah and Houthis as terrorist groups

Iraq has walked back its designation of Lebanon's Hezbollah and Yemen's Houthis as terrorist organisations, after a decision published in the Iraqi Gazette triggered political outrage and accusations of US pressure.

The original listings appeared in issue No. 4848 of the Gazette, which publishes binding state decisions that only take effect once printed.

The document, shared by MP Mustafa Sanad, showed that Decision No. 61 from the Committee for the Freezing of Terrorists’ Assets had placed both groups on Iraq's terrorism list and ordered their financial assets frozen.

But on Thursday, the committee issued a statement saying the version published in the Gazette had been released "without revision" and would be corrected.

According to a statement carried by the Iraqi News Agency (INA), the list was issued under UN Security Council requirements and at Malaysia's request, and it included several parties and entities that had "no connection to any terrorist activity".

The committee said those names were added because the list was published before editing, and would be removed once the Gazette publishes an amended version.

The explanation has not convinced political actors aligned with Iran-backed factions.

Uday al-Khadran, a member of the ruling Coordination Framework, told The New Arab's Arabic edition that the designation was issued under "American pressure and threats", calling it unacceptable and warning that it could pave the way for Iraqi groups to be listed next.

He rejected the idea that the inclusion of Hezbollah and the Houthis was a clerical error, saying such decisions were "not made accidentally".

Mujashaa al-Tamimi, a political activist close to the Sadrist movement, said Iraq was in practice obliged to comply with classifications issued by the US Treasury, given the country's dependence on dollar transactions and the Central Bank's vulnerability to sanctions.

He noted that Iraq had previously adjusted its sanctions lists in line with US decisions, including delisting Muammar Gaddafi's son once Washington removed him from its own register.

A government adviser, speaking to The New Arab's Arabic edition on condition of anonymity, said of the initial designation: "These are commitments Iraq cannot avoid under the current pressure. It is a financial measure more than a political one, and it will not have political consequences."

The initial decision fuelled a wide debate among analysts, while journalists and commentators close to Shia factions accused Prime Minister Mohammed Shia al-Sudani’s government of bowing to US pressure on groups within the so-called "axis of resistance".

MP Mustafa Sanad, who is aligned with factions tied to the Popular Mobilisation Forces, wrote on Facebook: "Iraq, sadly, designates the Houthis and Hezbollah as terrorist organisations while nominating Trump for the Nobel Peace Prize. Shame on you. A disgrace that many Arab states have not committed."

A political source close to a prominent armed faction in Baghdad told Al Araby Al Jadeed that the decision was originally issued about a month ago and involved "most official state bodies, including the Federal Supreme Court".

He said the measure was "primarily economic", adding that similar steps in previous years had not affected armed factions inside or outside Iraq.