After Fierce Backlash
Iraq Backtracks Quickly: Hezbollah and Houthis are Not Terror Organizations
Iraq sparks regional shock by briefly labeling Hezbollah and the Houthis as terrorists, then reverses course within hours amid furious backlash, exposing deep political tensions and Tehran-aligned pressures.
Today, Iraq's government faced intense controversy after an official publication briefly labeled Lebanon's Hezbollah and Yemen's Houthis (Ansar Allah) as terrorist organizations and ordered their assets frozen. Within hours, the Justice Ministry declared the move an error and promised an immediate correction, effectively walking back one of the most dramatic announcements in recent Iraqi history had seen.
The designation originated from Decision No. 61 of Iraq's Committee for the Freezing of Terrorists’ Assets. It was based on a confidential report from the Anti-Money Laundering and Counter-Terrorism Financing Office and was first formalized in late October 2025. The list, containing Hezbollah and the Houthis was published in the official Iraqi Gazette (Al-Waqa'i') on November 17–18, 2025, making it legally binding at that moment.
The stated justification was compliance with UN Security Council resolutions and a Malaysian request targeting ISIL and Al-Qaeda affiliates.As soon as the publication became public on the morning of December 4, 2025, pro-Iranian Iraqi politicians, activists, and militia-aligned figures reacted with fury. Critics called it a humiliating capitulation to U.S. pressure and a betrayal of the "Axis of Resistance."
By early afternoon the same day, the Justice Ministry issued an urgent clarification through the Iraqi News Agency (INA), stating the Gazette version had been released without final revision and mistakenly included entities with no connection to terrorism. A corrected list excluding Hezbollah and the Houthis would be published shortly.
No assets were frozen in the brief window the designation was active, and neither Hezbollah nor the Houthis issued an official response.
The incident exposed deep tensions inside Prime Minister Mohammed Shia al-Sudani’s government as it tries to balance U.S. demands with the influence of powerful Iran-backed factions in parliament and the security forces.Analysts remain divided on whether the original inclusion was a deliberate trial balloon that was quickly collapsed under domestic pressure, or simply a bureaucratic mistake in a system juggling competing international obligations.
Either way, the lightning-fast reversal shows just how narrow Iraq’s room for maneuver remains on issues touching Iran’s regional allies.