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Iraq removes Iran-aligned Hezbollah and Houthis from asset-freeze list after ‘mistake’

Iraqi PM orders accountability for the error over list meant for Islamic State/al-Qaeda only. Reversal is blow to US efforts curbing Iran

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Hezbollah fighters take an oath during a memorial ceremony to mark the 40th day since the death of Hezbollah senior commander Fuad Shukr, in Beirut, Lebanon in September 2024. Photo:  EPA-EFE
Reuters

Iraq will remove Lebanon’s Hezbollah and Yemen’s Houthis from an asset-freeze list, officials said on Thursday, after the Iran-aligned groups were mistakenly included in an earlier government publication, prompting confusion and criticism.

The Justice Ministry’s official gazette last month published a list of groups and entities whose funds would be blocked, naming both militant groups, a move that would likely have been welcomed in Washington and increased pressure on Tehran.

A letter from the acting deputy governor of the Central Bank asked the Committee for the Freezing of Terrorists’ Funds to delete the clause containing the names, two bank sources said.

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Prime Minister Mohammed Shia al-Sudani said Iraq had approved freezing only the assets of entities and individuals linked to Islamic State and al-Qaeda jihadists, in response to a request from Malaysia.

‘Hold accountable those responsible’

He said he had ordered an urgent investigation into the mistake “to hold accountable those responsible”.

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Sudani added that Iraq’s political and humanitarian positions on “the aggression on our people in Lebanon or in Palestine” were “principled and not subject to exaggeration”.

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