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Iraq ‘Mistakenly Lists’ Iran Allies as Terrorists, Unsettling Coordination Bloc

Iraqi Prime Minister Mohammed Shia al-Sudani beside Nouri al-Maliki during a religious event in Baghdad (Government Media)
Iraqi Prime Minister Mohammed Shia al-Sudani beside Nouri al-Maliki during a religious event in Baghdad (Government Media)
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Iraq ‘Mistakenly Lists’ Iran Allies as Terrorists, Unsettling Coordination Bloc

Iraqi Prime Minister Mohammed Shia al-Sudani beside Nouri al-Maliki during a religious event in Baghdad (Government Media)
Iraqi Prime Minister Mohammed Shia al-Sudani beside Nouri al-Maliki during a religious event in Baghdad (Government Media)

Iraq on Thursday stunned observers by abruptly adding Hezbollah and Yemen’s Houthi movement to a terrorism list that triggers immediate asset freezes, only to retract the move within hours by claiming the two names had appeared in an “unedited list” slated for correction.

The whiplash decision set off confusion and disbelief in Baghdad.

The Official Gazette, which is run by the Ministry of Justice, had published last month and formally announced on Thursday a list of entities subject to asset freezes that included Hezbollah and the Houthis.

Observers said the step was expected to win praise from Washington and tighten pressure on Tehran before the government withdrew it.

The paper said a government committee had decided to freeze the assets of individuals and entities linked to the Houthis and Hezbollah, and that the Iraqi announcement, later deleted, covered more than one hundred entities and individuals worldwide.

It said the terrorism list update came in accordance with resolutions of the committee tasked with freezing funds for identifying entities and individuals subject to counter terrorism and counter terrorism financing measures.

The developments came a day after s, urged Iraqi partners to undermine Iranian militias and prevent them from threatening Iraqis and Americans.

Asset freeze for terrorists

The text in the Official Gazette shows that the Anti-Money Laundering and Counter Terrorism Financing Committee had submitted in March 2025 a list of terrorist individuals and entities for asset freezes before the Committee for Freezing Terrorists’ Funds endorsed it in October 2025.

The Ministry of Justice website published the edition that carried the decision before deleting it following a wave of outrage among pro Iran circles in Iraq.

Hossein Moanes, the head of Kataib Hezbollah affiliate group Harakat Hoquq (The Rights Movement), attacked the government as lacking dignity.

Ali Al-Asadi, head of the political council of the Harakat al-Nujaba movement, said listing Hezbollah and Ansar Allah, the Houthis, as terrorists was an act of treason, adding that the government does not represent the Iraqi people.

A confidential letter from the Central Bank of Iraq said the publication of the two names was an oversight, and that pursuant to Committee for Freezing Terrorists’ Funds Decision 61 of 2025, paragraphs 18 and 19 should be deleted because the committee did not approve them.

The bank requested that an official amendment be issued in the Official Gazette.

Iraqi bloggers reposted paragraphs from the law governing publication in the Official Gazette, which states that ignorance of what is published in the Official Gazette does not excuse its content.

However, legal experts said rescinding what is published in the Official Gazette is possible and permissible from a legal standpoint, noting that the publication law allows corrections through a statement issued by the authority that produced the decision.

Iraq’s state news agency said Baghdad would fix the list after Hezbollah and the Iran backed Houthis were added.

The asset freeze committee said the publication dated November 17 applied solely to individuals and entities linked to ISIS and Al-Qaeda, in line with a Malaysian request and with United Nations Security Council Resolution 1373. It said adding other groups occurred before the final review was completed and would be deleted in a corrected version.

Iraqi regulations state that the only way to amend or cancel what is published in the Official Gazette is through a new law that repeals or modifies the earlier one, and until then anything published is considered an official and binding announcement.

A technical step

Legal expert Ali Al-Tamimi said the Committee for Freezing Funds of Terrorist Groups is attached to the General Secretariat of the Council of Ministers and chaired by the central bank governor, with members from counter terrorism and counter narcotics agencies, the interior and communications ministries, and the Integrity Commission.

It was established under the 2012 Anti Money Laundering Law.

He told Asharq al-Awsat that the committee’s mandate is to implement Security Council decisions and that the measure is financial and economic rather than political, noting that Security Council Resolution 2140 of 2025 calls for freezing the funds of Hezbollah and the Houthis.

The controversy quickly fed into political jockeying over whether Prime Minister Mohammed Shia al-Sudani should serve a second term. Yasser Al-Maliki, secretary general of the Al Bashaer Movement, wrote on X that respect for the dead requires their burial, in a remark widely interpreted as a declaration that Sudani’s term had ended.

Yasser Al-Maliki is close to Nouri Al-Maliki, leader of the State of Law coalition and a prominent opponent of Sudani remaining in office.

Government probe

The government responded with a statement saying Sudani had ordered an urgent investigation, identification of those responsible and accountability for the negligence related to the committee’s decision.

It said Iraq’s political and humanitarian positions toward the aggression against its people in Lebanon and Palestine are principled and not subject to political point scoring.

Arab media outlets quoted what they described as informed sources as saying Hezbollah in Lebanon was displeased by the uproar in Iraq over its appearance on the terrorism list.

They said a senior Hezbollah figure contacted Baghdad to clarify the mistake and urged Iraqi authorities to hold those responsible to account.

Washington has for years sought to curb Iran’s influence in Iraq and other parts of the Middle East, where Tehran aligned factions operate under what is known as the axis of resistance, which has come under heavy Israeli strikes since the Gaza war erupted in 2023.

Iran, a neighbor and key economic lifeline for Iraq under sanctions, is vital to Baghdad, which continues to balance its partnership with Washington against its complex ties with Tehran at a time when Iran’s regional sway has ebbed after a string of Israeli attacks on its allies over the past year.

 

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Arab World

Lebanon: Hezbollah Boycotts Cabinet Session over Iran Ambassador Expulsion

A previous session of the Lebanese Parliament (National News Agency)
A previous session of the Lebanese Parliament (National News Agency)
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Lebanon: Hezbollah Boycotts Cabinet Session over Iran Ambassador Expulsion

A previous session of the Lebanese Parliament (National News Agency)
A previous session of the Lebanese Parliament (National News Agency)

Ministers from Hezbollah and its ally Amal boycotted Lebanon's cabinet session on Thursday in protest over the government declaring the Iranian ambassador persona non grata, a Lebanese official told AFP.

The two Shiite parties have a combined four ministers, with one independent Shiite also represented in the cabinet present at the meeting, the official said, as the spat over the Iranian diplomat's expulsion escalated.

Hezbollah is an armed movement backed by Iran, which also has political representation in both government and parliament.

Arab World

Lebanese Fear Another Occupation as Israel Threatens to Use Gaza Tactics in the South

Israeli military vehicles maneuver on the Lebanese side of the border, as seen from the Upper Galilee in northern Israel, 25 March 2026. EPA/ATEF SAFADI
Israeli military vehicles maneuver on the Lebanese side of the border, as seen from the Upper Galilee in northern Israel, 25 March 2026. EPA/ATEF SAFADI
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Lebanese Fear Another Occupation as Israel Threatens to Use Gaza Tactics in the South

Israeli military vehicles maneuver on the Lebanese side of the border, as seen from the Upper Galilee in northern Israel, 25 March 2026. EPA/ATEF SAFADI
Israeli military vehicles maneuver on the Lebanese side of the border, as seen from the Upper Galilee in northern Israel, 25 March 2026. EPA/ATEF SAFADI

As Israel trades fire with Hezbollah, calls for mass evacuations and sends ground troops deeper into Lebanon, its leaders have hinted at a long-term occupation modeled on the devastating conquest of much of Gaza after Hamas' Oct. 7, 2023, attack.

Israel says it needs to establish a zone of control in the depopulated south to shield its own northern communities, which have faced daily rocket attacks since the Iran-backed militant Hezbollah group joined the wider war. Many in Lebanon fear that could mean the open-ended displacement of over a million people, the flattening of their homes and a loss of territory.

Israel's Defense Minister Israel Katz said this week that it would create a “security zone” up to the Litani River, some 30 kilometers (20 miles) from the border in some places. He said troops would destroy homes, which he claimed were being used by militants, and that residents would not return until northern Israel is safe.

The campaign would mirror the one in Gaza, in which Israeli forces flattened and largely depopulated the eastern half of the Palestinian territory, Katz said on Tuesday. Israel has said it won't withdraw from the enclave until Hamas disarms as part of a US-brokered ceasefire deal.

“We have ordered an acceleration in the destruction of Lebanese homes in contact-line villages to neutralize threats to Israeli communities, in accordance with the model of Beit Hanoun and Rafah in Gaza,” Katz said, referring to border towns that were largely obliterated.

From one war to the next

After a 2024 ceasefire halted Israel's last war with Hezbollah, Israeli forces gradually withdrew from southern Lebanon except for five strategic hilltops along the border.

Lebanese returned to find that homes, infrastructure, and some entire villages destroyed. Israel said it had dismantled Hezbollah infrastructure that could have been used to launch an Oct. 7-style attack, and it continued to strike what it said were militant targets on a near-daily basis after the truce.

Hezbollah resumed it attacks after Israel and the United States launched the war with Iran on Feb. 28, accusing Israel of having repeatedly violated the ceasefire. Israel accused Lebanon's government of failing to carry out its pledge to disarm Hezbollah, despite its unprecedented steps toward criminalizing the group.

In the latest fighting, Israel has launched blistering air raids across Lebanon, killing more than 1,000 people — mostly outside of the border area — and displacing over a million. It has warned residents to evacuate a wide swath of the south, extending from the border to the Zahrani River, some 55 kilometers (34 miles) away.

The Israeli military says it has launched a limited ground operation. Political leaders speak of more ambitious plans.

Bezalel Smotrich, Israel's far-right finance minister and a member of its Security Cabinet, said this week that the current war must end with “fundamental change.”

“The Litani must be our new border with the state of Lebanon,” he said.

Echoes of an earlier occupation Israel invaded southern Lebanon in 1982 during the country's civil war. Hezbollah, established that year, waged a guerrilla campaign that eventually ended the Israeli occupation in 2000.

This time around, Israel has bombed seven bridges over the Litani, the northern edge of a UN-patrolled buffer zone established after previous conflicts. Israel says Hezbollah was using the bridges to move fighters and weapons, and that its military will control the remaining crossings.

Heavy fighting has meanwhile erupted in the town of Khiam, the fall of which would cut off the south from Lebanon's eastern Bekaa Valley, another area with a large Hezbollah presence.

After the bridges were bombed, Lebanese President Joseph Aoun accused Israel of seeking to sever the south from the rest of the country “to establish a buffer zone, entrench the reality of occupation, and pursue Israeli expansion within Lebanese territories.”

UN peacekeepers say the bombing of the bridges and ongoing clashes have hindered their operations and put personnel at risk.

“This is the closest fighting activity we have seen to our positions,” said Kandice Ardel, spokesperson for the UN mission known as UNIFIL. “Bullets, fragments, and shrapnel have hit buildings and open areas inside our headquarters.”

Ardel said peacekeepers at observation points have seen a growing presence of Israeli troops and “engineering assets,” though they have not seen any new military positions built yet.

‘Different shades’ of control

Mohanad Hage Ali, a senior fellow at the Carnegie Middle East think tank in Beirut, said Israel has already established “different shades” of control.

“The first line of borders is a no-man zone. This is basically a large parking lot that is facing Israel,” he said. “There is nothing there, no movement, nothing at all.”

Lebanese movement is restricted farther north. During last year's olive harvest, farmers struggled to reach their groves because of regular Israeli strikes and had to be accompanied by Lebanese troops and UNIFIL peacekeepers, who coordinated with Israel.

Sarit Zehavi, the founder and president of the Alma Institute and a retired Israeli military officer, said Israel will likely establish a more extensive area of control stretching farther north.

She acknowledged that Israel was unlikely to defeat Hezbollah and was at risk of having to maintain a long-term presence in southern Lebanon.

“But the other alternative is to take the risk that we will be slaughtered. It’s as simple as that,” she said.

No diplomatic offramp in sight

Lebanon's government has broken a longstanding taboo by proposing direct talks with Israel. It has also taken action against Hezbollah since the last war, criminalizing its activities and claiming to have dismantled hundreds of military positions.

But neither the US nor Israel has shown any interest in such talks as they focus on the wider war with Iran.

If negotiations occur, Israel could demand major concessions in exchange for relinquishing territory taken by force — an updated version of the decades-old “land for peace” formula.

Israel seized parts of Syria after the overthrow of Syrian President Bashar Assad and is in talks with the new government in Damascus about an updated security arrangement. In Gaza, it has vowed to keep half the territory until the militant Palestinian Hamas group lays down its arms, as each side has accused the other of violating the truce reached in October.

Lebanese who fled their homes are meanwhile in limbo — and some fear they may never return.

Elias Konsol and his neighbors fled the Christian border village of Alma al-Shaab with UNIFIL's help. He was reunited with his mother, who cried in his arms, at a church near Beirut where funeral services were being held for a resident killed in an Israeli strike.

Konsol said there were no weapons or Hezbollah fighters in his village, but it was forced to evacuate anyway.

“We no longer know our fate,” he said. “We don’t know if we will see our homes and village again.”

Arab World

Lebanon: Hezbollah Claims Targeting 10 Israeli Merkava Tanks

Israeli tanks near the Israeli side of the border with Lebanon, amid escalating hostilities between Israel and Hezbollah, as the US-Israeli conflict with Iran continues, in northern Israel, March 25, 2026. REUTERS/Tyrone Siu
Israeli tanks near the Israeli side of the border with Lebanon, amid escalating hostilities between Israel and Hezbollah, as the US-Israeli conflict with Iran continues, in northern Israel, March 25, 2026. REUTERS/Tyrone Siu
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Lebanon: Hezbollah Claims Targeting 10 Israeli Merkava Tanks

Israeli tanks near the Israeli side of the border with Lebanon, amid escalating hostilities between Israel and Hezbollah, as the US-Israeli conflict with Iran continues, in northern Israel, March 25, 2026. REUTERS/Tyrone Siu
Israeli tanks near the Israeli side of the border with Lebanon, amid escalating hostilities between Israel and Hezbollah, as the US-Israeli conflict with Iran continues, in northern Israel, March 25, 2026. REUTERS/Tyrone Siu

Lebanon's Iran-aligned Hezbollah group said Thursday that it struck10 Israeli Merkava tanks in three southern towns along the border.

In a series of separate statements, Hezbollah said that its members targeted the advanced Israeli tanks with guided missiles in the towns of Deir Siryan, Debel, and Al-Qantara, and achieved confirmed hits.

Earlier, Hezbollah said it targeted the headquarters of the Israeli Ministry of War in the center of Tel Aviv, and the Dolphin barracks of the Military Intelligence Division north of Tel Aviv with a number of missiles.

The Israeli military said an Israeli soldier was killed in fighting in south Lebanon after the army announced it was conducting ground operations against Hezbollah.

"Staff sergeant Ori Greenberg, aged 21, from Petah Tikva, a soldier of the Reconnaissance unit, Golani Brigade, fell during combat in southern Lebanon," the military said.

In total, three Israeli soldiers have been killed in fighting in south Lebanon since Hezbollah drew the country into the Israel and US war on Iran by launching rocket attacks against Israel on March 2 to avenge the killing of Iran's supreme leader Ali Khamenei.

Israel is responding by launching large-scale raids on Lebanon, while its forces have advanced into southern Lebanon.

After the Lebanese Presidency repeatedly announced its readiness to open direct negotiations with Israel in order to end the war, Hezbollah announced its refusal to negotiate "under fire."

Its Secretary-General, Naim Qassem, said Wednesday in a statement: "When negotiating with the Israeli enemy under fire is proposed, it is an imposition of surrender and a deprivation of all of Lebanon's capabilities."

He called on the government to "reverse its decision to criminalize resistance and the resistance fighters," after announcing a ban on the party's security and military activities, as part of a series of unprecedented measures it has taken since the outbreak of the war.