Iraq vows to amend list of terror groups after inclusion of Hezbollah and Houthis draws protest

Iraq's Prime Minister Mohammed Shia al-Sudani (C), delivers a speech during a campaign rally for the Reconstruction and Development Coalition ahead of the country's parliamentary elections in Baghdad on November 7, 2025. (AHMAD AL-RUBAYE / AFP)
Iraq's Prime Minister Mohammed Shia al-Sudani (C), delivers a speech during a campaign rally for the Reconstruction and Development Coalition ahead of the country's parliamentary elections in Baghdad on November 7, 2025. (AHMAD AL-RUBAYE / AFP)

Iraq’s Committee for Freezing Terrorists’ Funds says it will correct an official list of designated terrorist organizations following furor from pro-Iran voices in the country over the inclusion of Hezbollah and the Houthis.

Both terror groups, based in Lebanon and Yemen, respectively, are backed by Iran and seek Israel’s destruction.

The committee says in a statement carried by Iraq’s state news agency that Iraq approved a list of “entities and individuals associated with ISIS and Al-Qaeda” that will have their funds frozen following a request by the government of Malaysia. Most of the groups and people on the list were from Southeast Asia.

“Other entities’ names were included due to the list being published before undergoing revision,” the statement says, without naming either Hezbollah or the Houthis. “The Iraqi Gazette will be corrected with the removal of entities and parties from the list of entities associated with the terrorist organizations ISIS and Al-Qaeda.”

Afterward, the office of Iraqi Prime Minister Mohammed Shia al-Sudani repeated those claims in its own statement on the state news agency. The premier’s office also announced an investigation “to determine responsibility and hold accountable those responsible for the error contained in the decision” and included in Iraq’s official gazette number 4848, which was published on November 17.

The premier’s statement also affirmed that Iraq’s position “on the aggression against our people in Lebanon or in Palestine are matters of principle which are non-negotiable and reflect the will of the Iraqi people.”

Sudani’s statement comes amid reports in Arabic media that he faces an uphill battle to hold onto the leadership of his parliamentary bloc — which includes pro-Iranian elements — despite its victory in last month’s elections.

The list received wide media attention in Iraq on Thursday morning after pro-Iranian lawmaker Mustafa Sanad pointed out on Facebook that Hezbollah and the Houthis were on the list of groups slated to have their funds frozen.

He lamented that the two Iran-backed groups “are classified as terrorist organizations” while US President Donald Trump “is nominated for the Nobel Peace Prize.”

“Shame on you,” he added, addressing the Iraqi government, which he said had adopted “a disgraceful stance” not taken by other Arab governments.

An Iraqi government adviser cited by Qatari-owned newspaper Al-Araby Al-Jadeed says Hezbollah and the Houthis were designated as terror groups as part of Iraq’s commitments to the US Treasury. The US designates both as terror groups. The commitments were taken to avoid sanctions on Iraqi institutions including the country’s central bank and state oil company, the adviser says.

Another political source cited by the outlet distances the Iraqi government from the decision, which the source attributes to the country’s judiciary.

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