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The Day · Friday 12 December 2025

Filed 12:06 · Palestine time (UTC+2) · World

09:53–13:13Midday

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Iraq Lifts Asset Freeze on Hezbollah and Houthis After Administrative Error

Iraq has removed Hezbollah and the Houthis from its terror asset-freeze list, citing an administrative error. The move comes as authorities revisit previous classifications. The decision reflects a correction in official procedures, although further details remain limited.

SANAA, YEMEN – NOVEMBER 30: Thousands of Houthi supporters gather to mark 30th November Independence Day, in Sanaa, Yemen, on November 30, 2025. The demonstrators chanted slogans against the United States and Israel. ( Mohammed Hamoud – Anadolu Agency )

Iraq has officially lifted the asset freeze imposed on Hezbollah and the Houthis, attributing the initial listing to what it describes as an ‘administrative error.’ The decision signals a reversal of a previous designation that had placed the two groups on a terror asset-freeze list within the country.

The move was announced following internal reviews, with officials clarifying that the inclusion of Hezbollah and the Houthis had not followed standard procedural protocols. As a result, the designation was rescinded, and the financial restrictions tied to their classification were removed.

Hezbollah and the Houthis, both recognized as organized resistance groups by various popular and political currents in the region, were previously affected by Iraq’s asset-freezing measures. These measures are typically deployed against entities suspect of unlawful financial activities, but in this case, the authorities admitted the application of these rules had been an oversight.

From its side, the relevant Iraqi departments have not disclosed detailed timelines or the extent of the assets initially targeted. However, official sources noted that the reversal was necessary to align the listings with correct administrative procedures and legal standards.

Meanwhile, this development is likely to draw attention from regional observers monitoring Iraq’s legal and political stance on resistance movements. The lifting of the asset freeze raises questions about the processes used to determine such classifications and the margins for error within those frameworks.

In addition, no official response from Hezbollah or the Houthis has been reported in relation to the administrative correction or the lifting of the freeze. The situation remains under observation as legal frameworks and interpretations in Iraq continue to shift concerning resistance formations and their financial engagements.

The correction comes at a time when Iraq’s political and administrative agencies face substantial scrutiny over the classification of groups with involvement in regional dynamics. Observers note the capacity for administrative actions to signal broader policy orientations, especially when they involve entities tied to ongoing resistance movements.

Furthermore, Iraq’s acknowledgment of an ‘administrative error’ marks a notable moment in the country’s bureaucratic management of its asset control lists. It also underscores the challenges involved in balancing internal regulation with the complex regional alignments that involve groups like Hezbollah and the Houthis.

As of now, the financial and legal implications for the groups following this reversal remain unconfirmed. The quiet nature of the correction suggests an intention to resolve the issue without escalating diplomatic or regional tensions.

Analysts suggest that additional clarifications may follow, either from Iraqi authorities or from the groups concerned, to address the repercussions of the previous listing and its sudden cancellation. Until then, the removal of Hezbollah and the Houthis from Iraq’s terror asset-freeze list stands as an officially registered administrative correction.

12 Dec, 12:06

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