After Iraq's Official Gazette announced that the country would freeze the money of Iran-backed terrorist groups, including Lebanon's Hezbollah and Yemen's Houthis, the state's news agency said Iraq would correct the list of the groups whose funds would be frozen.
The news agency reported that the "Committee of Freezing Terrorists' Funds" said it would remove some parties from the list, without naming them, and it is unclear whether Hezbollah and the Houthis will be included in the updated list.
The move to freeze funds of Iranian proxies will likely be welcomed by Washington, which has long sought to reduce Iran's influence in Iraq and other countries in the Middle East where Tehran has allies.
Iraq balances US pressure as Iran’s sway weakens
Iran views its neighbor and ally, Iraq, as vital for keeping its economy afloat amidst sanctions. But Baghdad, a partner to both the United States and Iran, is wary of being caught in the crosshairs of US President Donald Trump's policy to squeeze Tehran.
Iran wields considerable military, political, and economic influence in Iraq through its powerful Shi'ite militias and the political parties it backs in Baghdad. But increased US pressure over the past year comes at a time when Iran has been weakened by Israel's attacks on its regional proxies.