Iraq Blacklists Hezbollah and Yemen’s Houthis in Rare Break from Tehran-Aligned Policy

ERBIL (Kurdistan24) — In a rare and politically significant move, the Iraqi government has officially designated Lebanon’s Hezbollah and Yemen’s Houthis (Ansar Allah) as terrorist organizations involved in “participating in the commission of a terrorist act,” according to a newly published directive in the official government gazette (Al-Waqa’i al-Iraqiya).

The decision marks a surprising departure from longstanding Iraqi political dynamics, given Iran’s deep influence over Baghdad and Tehran’s extensive support for both groups with funding, training, and weapons.

The announcement appeared in issue No. 4848 of the gazette dated Nov. 17, 2025, listing two new entries under the “Decisions” section:

- Entry No. 18: Designated Hezbollah, headquartered in Lebanon.
- Entry No. 19: Designated the Houthis (also known as Ansar Allah), headquartered in Yemen.

Both organizations were tagged with the charge of “participation in committing a terrorist act,” placing them squarely under Iraq’s counterterrorism financing laws, which mandate the freezing of assets, blocking of financial transactions, and full compliance with international sanctions regimes.

The listing is legally binding for all banks, financial institutions, and government entities across Iraq.

Publication of these names in the official government gazette is a formal and enforceable step typically triggered by recommendations from Iraq’s Committee for Freezing Terrorists’ Funds, operating under the Anti–Money Laundering and Counter-Terrorism Financing Law No. 39 of 2015. Such listings are also frequently aligned with relevant UN Security Council sanctions.

A Rare Move with Major Political Weight

The decision carries extraordinary political weight in Iraq, where several parties within the governing coalition maintain close ties with Tehran, and where Iran-backed armed factions constitute a powerful pillar of the country’s security and political landscape.

Against this backdrop, formally classifying Hezbollah and the Houthis as terrorist entities stands out as one of Baghdad’s most surprising policy shifts in recent years.

Observers say the move signals either an attempt by Baghdad to recalibrate its international posture amid US and global pressure — or a step toward asserting greater institutional independence from regional power dynamics. Either explanation underscores the sensitivity of the decision in Iraq’s complex political environment.

What Happens to Hezbollah and Houthi Networks Inside Iraq?

The designations raise urgent and unresolved questions about the fate of Hezbollah- and Houthi-linked structures inside Iraq. Both groups are known to maintain support offices, logistical channels, and individual members or affiliates operating within the country — often under the umbrella of Iran-aligned Iraqi militias.

With the new listing, Iraq is now legally obligated to take clear and measurable actions against any branch, representative, or member operating on its soil. This includes:

- Closing offices or logistical hubs, if formally linked to either group;
- Freezing assets and bank accounts associated with individuals;
- Tracking financial transfers and charitable fronts linked to Hezbollah or the Houthis;
- Determining whether local operatives will be arrested, expelled, or required to sever ties with the parent organizations.

Whether the Iraqi government is institutionally strong enough — or politically willing — to enforce such measures remains an open question.

Any attempt to dismantle or expel Hezbollah or Houthis' affiliated members in Iraq could generate resistance from powerful Iran-aligned factions inside the Popular Mobilization Forces (PMF), many of which maintain ideological or operational ties with these groups.

Uncertain Enforcement in a High-Stakes Environment

Iraq’s political fragmentation, coupled with the entrenched power of Iran-backed militias, raises significant doubts about how far Baghdad can realistically go in implementing the new designations.

Should Iraq fail to act on its own listings, it risks undermining the credibility of its financial compliance bodies and straining relations with Western partners that have long pressed Baghdad to curb the influence of sanctioned organizations.

On the other hand, if Baghdad moves aggressively to enforce the designations — by shutting down networks, arresting affiliates, or deporting foreign members — it could provoke domestic backlash and deepen internal political fissures.

For now, the decision remains a landmark moment in the final quarter of 2025, signaling a notable, if cautious, shift in Iraq’s official posture toward groups long considered untouchable due to their Iranian backing.

The true test, however, will lie in how — and whether — the Iraqi state chooses to act on its own decree.