Chaos in Iraq after Hezbollah, Houthis added to terrorist list
US pressure may be behind sudden move against Iran-backed allies
BAGHDAD, Iraq (MNTV) — Confusion swept through Iraqi government agencies after Lebanon’s Hezbollah and Yemen’s Houthis were designated as terrorist organizations, triggering a freeze on their economic assets.
According to the official Gazette published on the Justice Ministry website, the groups were added to a list of organizations and individuals accused of terrorism and financing extremism.
The decision was reportedly based on a “confidential” report submitted by the Anti-Money Laundering and Counter-Terrorism Financing Office at the Central Bank of Iraq.
The Gazette stated that Iraq would “freeze the movable and immovable assets and economic resources” of those listed, noting that Hezbollah and the Houthis had “taken part in a terrorist attack,” without providing further details.
The Central Bank later clarified it “did not approve the freezing of those entities’ funds, which was apparently published in error,” and requested the government remove the lists.
The move has heightened tensions between Prime Minister Mohammed Shia Al Sudani, who is seeking a second term following November elections, and Tehran-aligned militias accusing him of leaning toward Washington.
Both Hezbollah and the Houthis maintain close ties with Iran-backed Shiite parties and armed factions in Iraq.
Since the 2003 US-led invasion, Hezbollah has developed strong influence within Iraq, helping shape successive governments, while both Hezbollah and the Houthis have representation in Baghdad. Since taking office in 2022, Al Sudani has faced pressure from Washington to rein in Iranian proxies.
In August, the government withdrew a draft law regulating the Shiite-dominated Popular Mobilization Forces under U.S. and international pressure.
The bill aimed to restructure and expand the PMF’s powers, which critics said would have strengthened Iranian influence.
“This is an unprecedented development in Iraq’s political landscape and reflects Baghdad’s efforts to improve relations with the U.S.,” activist Ali Al Mikdam said.
He added that practical implementation appears limited, suggesting the decision may remain largely formal.
However, Al Mikdam warned that designating Hezbollah as a terrorist organization carries risks, as the group retains structural and political ties with influential Iraqi militias. “This could trigger internal tensions and escalate into serious confrontations,” he said.
Have Your Say!
Have you been affected by the issues raised in this story? Please share your experiences by emailing haveyoursay@soundvision.com.
Please include a contact number if you are willing to speak to a Muslim Network TV’s representative. You can also get in touch in the following ways:
Tweet: @MuslimNetworkTV
We must take charge of our narrative. Research indicates that 92% of their Muslim coverage is negative. Help us change that.
