Iraqi PM Sudani says inclusion of Hezbollah, Houthis in ‘terrorist’ asset-freeze list an ‘error’

ERBIL, Kurdistan Region - Iraqi Prime Minister Mohammed Shia’ al-Sudani on Thursday ordered an “urgent” probe into what he described as an “error” that resulted in Lebanon’s Hezbollah and Yemen’s Ansarullah - the Houthis - being included in an Iraqi government list of organizations whose assets were to be frozen for purported links to terrorist activity.

A statement from his office relayed that Sudani directed that “an urgent investigation be conducted, responsibilities identified and those negligent be held accountable for the error made in the Committee for Freezing Terrorists Assets decision … which included texts conveying positions that are not accurate.”

Iraq’s approval of the asset freeze was “limited to listing entities and individuals linked to the terrorist [Islamic State] ISIS and al-Qaeda organization,” the statement added.

Earlier on Thursday, Iraqi and regional media outlets reported that the Committee had frozen “all movable, immovable, and economic resources” belonging to Hezbollah and Ansarullah, accusing them of “participation in committing a terrorist attack.”

However, shortly before Sudani issued his orders, the Committee released its own clarification, saying that “Decision No. 61 for the year 2025, published in the Official Gazette of Iraq, issue No. 4848 on 17/11/2025, includes the freezing of funds and assets of a list of entities and individuals associated with terrorist organizations.”

In an implicit reference to Hezbollah and Ansarullah, the Committee added that the appearance of some names resulted from “the list being published before revision,” adding that “a correction will be made in the Iraqi Gazette to remove those entities and parties from the list of organizations associated with terrorist groups.”

The reactions

Hezbollah and Ansarullah are key members of the Iran-led “Axis of Resistance” - a network of Tehran-aligned armed and political groups across the Middle East, including within Iraq.

The decision’s publication triggered swift backlash from figures aligned with the Axis.

In an ostensible jab at Sudani, Hussain Mouanes, head of the Hoquq bloc in parliament - affiliated with Iraq’s Kata’ib Hezbollah armed group - wrote on X that “a caretaker government that blacklists a resistance group in Lebanon as a terrorist organization… is neither sovereign nor courageous.

“It is a trembling authority, submissive, seeking approval from others, and lacking even the minimum dignity required to represent a people or defend a nation’s sovereignty,” he added.

Similarly, Iraqi lawmaker Mustafa Sanad, a staunch supporter of the Popular Mobilization Forces (PMF), also criticized the move, writing on Facebook that “those who freeze honor will themselves be frozen.”

Of note, the PMF is an umbrella organization of Iraqi Shiite armed groups aligned with Iran, including factions that overlap with the Tehran-led Axis of Resistance.

In what appeared to be an indirect response to the criticism, Sudani on Thursday reaffirmed his government’s “firm support” for the “rights of landowners” in Lebanon and Palestine against “aggression” and “occupation,” describing these stances as “principled and not subject to political posturing.”

The Iraqi premier warned “opportunists or bankrupt parties” against attempting to “outbid the Iraqi government on these positions.”

The timing

Although the Committee’s decision was published on November 17, it only gained wide attention on Thursday.

The publication notably comes shortly after Iraq held early legislative elections on November 9, followed by the general vote two days later. Final results were announced mid-November by the Independent High Electoral Commission (IHEC).

The Reconstruction and Development Coalition (RDC), led by Sudani, emerged as the frontrunner with 46 seats in the 329-member parliament.

Following the vote, the ruling Shiite Coordination Framework announced that it had secured the largest bloc in the incoming legislature - a key step for naming Iraq’s next prime minister.

Since the 2003 US-led invasion, Iraq’s informal sectarian power-sharing arrangement has reserved the premiership for Shiites, the speakership for Sunni Arabs, and the presidency for the Kurds.

Under the Iraqi constitution, the new parliament must convene with a two-thirds quorum and be presided over by its eldest member as acting speaker.

Parliament then elects a speaker, followed by a president through a secret ballot, requiring a two-thirds majority in the first round or a simple majority in a runoff. The largest parliamentary bloc then nominates the prime minister-designate, who is tasked by the president to form the next government.

Sudani has repeatedly expressed his keenness to secure another term as premier, saying he wants to continue implementing the ministerial program he began in his first tenure.

However, politicians close to the Coordination Framework have recently told Rudaw that while Sudani remains a possible candidate, he is not the only contender.

On Monday, Salam al-Zubaidi of the Nasr (Victory) Coalition - led by former prime minister Haider al-Abadi - said six names are under consideration including Sudani, ex-premier Nouri al-Maliki, Iraqi National Intelligence Service (INIS) chief Hamid al-Shatri, former sports minister Abdul-Hussein Abtan, and Basra governor Asaad al-Eidani.

Whether the controversy over the asset-freeze decision will weaken Sudani’s prospects for retaining the premiership remains to be seen.