Iraq is expected to remove Hezbollah and Houthis from a sanctions list, according to officials.
The country's justice ministry, in its gazette, listed entities that are facing asset freeze. However, it incorrectly included the Hezbollah and the Houthis in the list, Reuters reported, citing officials.
Iraq's Central Bank acting deputy governor, in a letter, directed the Committee for the Freezing of Terrorists' Funds to scrap the clause, according to bank sources cited by the news agency.
Is Iranian pressure behind Iraq's move?
Iran's Tasnim news agency claimed that the decision made by the Iraqi central bank comes after intense public and political pressure made it "back off".
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Though Baghdad maintains balanced ties with Tehran and Washington, it is always under scrutiny from global sanctions regimes.
Iraqi Prime Minister Mohammed Shia’ al-Sudani said the country approved sanctions on individuals and entities linked to the ISIS and Al Qaeda as per UN Security Council Resolution 1373. Besides, Malaysia had also sought asset freeze on them.
However, he said the inclusion of Hezbollah and the Houthis will be investigated and that those responsible for the error will be held accountable. Al-Sudani added that Iraq's stance on Lebanon and Palestine was "principled and not subject to exaggeration."
