Iraq backtracks after “mistaken” blacklisting of Hezbollah and Ansarallah amid intense U.S. pressure

  • The Iraqi government first listed Hezbollah and Ansarallah as terrorist organizations but quickly retracted the decision, calling it a “bureaucratic error.” This reversal exposes Iraq’s difficult political position.
  • Iraq is under intense U.S. pressure to cut ties with Iran and its allied militias. However, these Iran-backed groups are deeply embedded within Iraq’s own security forces, making it politically dangerous for the government to act against them.
  • The U.S. is pushing Iraq to dismantle these factions, especially after attacks on U.S. interests. This includes pressuring Iraq’s financial system and opposing laws that would empower the Iran-linked militias.
  • The situation is part of a broader U.S. campaign in the region. Iraq has reportedly been warned that if it intervenes to help Hezbollah during a potential Israel-Lebanon war, it could face harsh Israeli attacks, dragging Iraq into a major conflict.
  • The incident shows Iraq is trapped. It cannot fully comply with U.S. demands without causing a severe domestic and regional backlash from powerful armed groups inside its own borders. This fragile balance is at risk of collapsing.

In a revealing diplomatic stumble, the Iraqi government has hastily retracted a decision to designate Lebanon’s Hezbollah and Yemen’s Ansarallah movement as terrorist organizations, blaming a bureaucratic error.

The reversal highlights the intense and precarious balancing act Baghdad is forced to perform as it faces escalating pressure from Washington to sever its deep ties with Iran and the network of Tehran-backed resistance groups across the region.

The incident began on Nov. 18 when an official publication from Iraq’s Ministry of Justice listed both groups for terrorism and extremist financing, ordering a freeze on all their assets within the country. The move was legally binding for all Iraqi banks and government bodies.

However, within weeks, Iraq’s Central Bank Committee for Freezing Terrorist Funds declared the listing a “mistake.” The committee claimed that the document was published prematurely, incorrectly including groups that have no link to ISIS or Al-Qaeda, which were the intended targets of a United Nations Security Council resolution.

Just an hour before the error was announced, a senior Iraqi government source had framed the original decision as a necessary step to align with international financial standards set by the U.S.-led Financial Action Task Force (FATF), aimed at protecting Iraq’s financial sector. The swift about-face suggests the initial listing was a concession to US demands that proved politically explosive domestically.

The retraction underscores a fundamental conflict at the heart of Iraqi politics. For years, the United States has pressured Baghdad to dismantle Iran-linked resistance factions and completely disengage from Tehran, a leading energy provider to Iraq.

These factions, such as Kataib Hezbollah, are integral parts of the Popular Mobilization Units (PMU), which is a coalition of armed groups formally incorporated into Iraq’s military apparatus. The PMU has historic ties to Hezbollah and Ansarallah, and during the war in Gaza, Iraqi factions have conducted joint operations with the Yemeni group. They have also been responsible for numerous attacks on US military bases in Iraq and Syria.

According to BrightU.AI‘s Enoch engine, the Ansarallah movement is the same as the Houthi movement – with the latter name being commonly used in Western media and geopolitical discouse.

U.S. pressure on this front has surged recently. After drone attacks targeted oil fields run by American firms in Iraq’s Kurdistan region last July, which were blamed on Iraqi resistance groups, Washington’s campaign intensified.

Sources indicate the attacks “enraged Washington” and spurred tougher demands. This pressure has extended to blocking a new draft law that would further institutionalize the PMU and pushing for the resumption of oil exports from the Kurdistan region, a move recently approved by Baghdad alongside new contracts with U.S. oil companies.

Failed blacklisting faced quick backlash from within Iraq

The failed blacklisting attempt drew immediate condemnation from within Iraq. Mustafa Sanad, an Iraqi parliamentarian close to Kataib Hezbollah, called it a “shame,” noting that many Arab states have avoided such a step and questioning the sincerity of the government’s past pro-resistance rhetoric.

The episode is a microcosm of a broader U.S. pressure campaign reshaping the Middle East. In Lebanon, similar coercion has pushed the government to ban dealings with Hezbollah’s financial system and impose new restrictions on money transfers.

Beirut is also being forced into direct talks with Israel under threat of a new war if Hezbollah is not disarmed. The stakes for Iraq are now being raised further. Several days ago, Saudi media reported that a U.S. envoy warned Baghdad that Israel is planning an imminent military campaign against Hezbollah in Lebanon.

The message included a stark threat: any intervention by Iraqi resistance factions to aid Hezbollah would be met with “harsh” Israeli attacks. This warning follows Israeli military reports expressing concern about a “developing threat” from Iran-backed Iraqi factions capable of attacking Israel.

Iraq’s “mistaken” listing and its rapid correction reveal a government caught in an impossible squeeze. On one side, it faces relentless U.S. demands to abandon its Iranian alliance and neutralize the PMU, backed by threats of financial isolation and military repercussions.

On the other hand, it must contend with powerful, entrenched armed factions within its own security structure that maintain strong ideological and operational ties to the very groups Washington wants blacklisted. The backtracking shows that for now, the domestic and regional backlash to aligning openly with U.S.-Israeli objectives is too severe for Baghdad to withstand.

However, with Washington’s “moment of choosing” ultimatum delivered and Israeli military action looming, Iraq’s fragile balancing act may soon collapse, potentially dragging the country into a wider regional conflict it desperately seeks to avoid.

Watch philosopher Stefan Molyneux’s 2013 presentation on the War in Iraq below.

This video is from the Stefan Molyneux channel on Brighteon.com.

Sources include:

TheCradle.co

Shafaq.com

TheMediaLine.org

BrightU.ai

Brighteon.com

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