Iraq’s government claimed an “administrative error” on Thursday after it was revealed that the Central Bank had officially sanctioned Lebanon’s Hezbollah and Yemen’s Ansar Allah (known in the West as the Houthis) as terrorist organizations for nearly three weeks.
The issue surfaced when Iraqi parliamentarian Mustafa Sanad posted a document from the Iraqi Official Gazette dated November 17. The publication listed 24 individuals and entities to be targeted for asset freezes by Iraq’s Committee for Freezing Terrorists’ Assets, which operates under the Central Bank. The list, intended to target ISIS- and Al-Qaeda-linked groups, included Hezbollah and Ansar Allah among those designated.
The document quickly sparked public outrage. In response, the Committee issued a statement to the Iraqi News Agency (INA) admitting that the list was published “before undergoing revision” and included “entities not associated with ISIS or Al-Qaeda.” The statement confirmed that the listing had been corrected, removing both groups. Prime Minister Mohammed Shia al-Sudani subsequently ordered an investigation, which verified that the designations had been active for at least three weeks.
The timing of the incident has fueled speculation that the move may not have been accidental. Baghdad has faced increasing U.S. pressure to confront Iran-aligned armed factions in Iraq. Reports indicate that Defense Secretary Pete Hegseth delivered a “final warning” to Iraqi officials on November 7 regarding the Popular Mobilization Forces (PMF), many of whom maintain ties to Hezbollah. Additionally, U.S. envoy Tom Barrack warned al-Sudani last week that Israel could target PMF units if they intervened in potential escalation involving Hezbollah, also suggesting that a renewed Israeli offensive in Lebanon was possible.
These developments come amid uncertainty over Washington’s military posture in Iraq. Although the U.S. military withdrew from bases outside the Kurdistan Region earlier this year under an agreement reached with the previous Biden administration, the Pentagon later announced that several hundred military “advisers” would remain. The change has prompted speculation that a complete withdrawal may not actually be planned.