Iraq reverses decision to freeze funds of Iran-backed groups, to review list of terrorist organizations

Iraq has announced a shift in its approach regarding the freezing of assets belonging to groups supported by Iran, signaling a revision to the previously released list of designated organizations. The decision comes after the country's Official Gazette initially stated that funds linked to Iranian-backed groups, including Lebanon's Hezbollah and Yemen's Houthis, would be frozen. The state news agency later clarified that adjustments would be made to the list, though it did not specify which organizations might be removed or retained.

The adjustment is expected to be viewed positively in Washington, which has consistently aimed to curb Tehran's influence in Iraq and across other Middle Eastern nations where Iran maintains allies. The "Committee of Freezing Terrorists' Funds" confirmed it would amend the list but provided no further details on the specific groups affected.

Iraq finds itself navigating a delicate balance between its relationships with the United States and Iran. Baghdad is cautious about being caught in tensions arising from US strategies aimed at pressuring Tehran, while Iran considers Iraq a key partner for sustaining its economy amid international sanctions. Tehrans sway in Iraq remains significant, bolstered by Shi'ite militias and political entities backed by Iran, yet recent US pressure, combined with regional actions against Iranian proxies, has impacted Irans regional leverage.

In the midst of these dynamics, Iraqi authorities are adjusting policies to reflect both internal and external pressures, carefully managing the complex interplay of influence between Washington and Tehran.

Author: Zoe Harrison