Iraq withdraws terrorist designation on Lebanon's Hezbollah and Yemen's Houthis

BAGHDAD On Thursday, Iraq reversed its recent decision to label Lebanon's Hezbollah group and Yemen's Houthi rebels as terrorist organizations, admitting the designation had been made in error. The retraction came shortly after initial reports of the listing emerged, with officials stating the decision was issued prematurely, without proper review.

The original announcement, published in Iraqs official gazette on November 17, included Hezbollah and the Houthis among 24 organizations subject to a national asset freeze, accusing them of involvement in terrorist activities. Both groups are allies of Iran and maintain ties with Iraqs Shiite militias.

Iraq faces growing pressure from the United States to control Iran-backed militias within its borders, while simultaneously managing its diplomatic ties with both Washington and Tehran. Concerns have risen over potential spillover from escalating tensions between Israel and Iran.

The Iraqi government stated that the names of Hezbollah and the Houthis will be removed in a corrected version of the official gazette. Prime Minister Mohammed Shia al-Sudani has ordered an investigation into how the error occurred.

Two Iraqi officials, speaking anonymously, indicated the reversal followed pressure from Iran-aligned political groups and armed factions in Iraq, who argued the designation targeted regional allies and could provoke confrontation with Tehran. The decision had also sparked criticism from Iraqi citizens who support Palestinian causes and view Hezbollah and the Houthis as resistance forces against Israel. Both groups conducted strikes against Israel following the October 7, 2023 Hamas-led attack that escalated the Israel-Hamas conflict in Gaza.

Local reactions highlighted the controversy: It is unfair and not the right decision, and we consider it against Islam, said Baghdad resident Raad Mohammed before the retraction was announced. Political analyst Anwar al-Musawi noted that Iraq was caught between U.S. demands and long-standing regional alliances, emphasizing that cooperation with Hezbollah and the Houthis had been part of Iraqi policy for years.

There has been no immediate response from Hezbollah, the Houthis, or the U.S. regarding the reversal.

On Thursday, Iraq made a significant policy shift, retracting its recent decision to label Hezbollah and Yemen's Houthi rebels as terrorist organizations. This move has sparked debate and raised questions about the country's diplomatic priorities and internal pressures. Initially published on November 17, the decision was swiftly retracted after it became clear that it had been made hastily and without the proper review.

The original listing, which included 24 organizations subject to national sanctions, pointed to Hezbollah and the Houthis as terrorist entities with ties to Iran. However, the Iraqi government soon acknowledged that the move had not been carefully considered, leading to an immediate correction in the official gazette. Prime Minister Mohammed Shia al-Sudani has ordered an investigation to determine how this error occurred, signaling a desire to maintain political stability amidst conflicting interests.

The reversal seems to reflect internal pressure from Iran-aligned political factions in Iraq, who argued that the designation was an unjustified attack on key regional allies. Additionally, there is a significant portion of the Iraqi population that views Hezbollah and the Houthis as resistance movements against Israel, which complicates the situation further. As these groups have supported the Palestinian cause, especially in the wake of the October 7 attacks, the decision to label them as terrorists was met with strong local opposition.

While the United States has long pressured Iraq to curtail Iran-backed militias, the government's position remains delicate. Iraq’s strategic relationship with both Washington and Tehran complicates any clear stance on regional issues. The controversy highlights the ongoing balancing act the Iraqi government faces between international pressure and domestic political realities.

In conclusion, this episode illustrates Iraq's vulnerability to external influence and the difficulty of navigating the region's complex geopolitical dynamics. The correction serves as a reminder that decisions made in haste can quickly spiral into diplomatic challenges, requiring careful consideration of both local sentiment and international relations.

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• Iraq retracts a terror designation it imposed on Lebanon's Hezbollah and Yemen's Houthis