Middle Eastern central bank just dropped a bombshell, then immediately took it back.

Earlier today, Iraq's monetary authority published a list designating certain regional militant groups as terror organizations, announcing immediate asset freezes. The document specifically named Hezbollah and Houthi forces among the entities flagged for financial restrictions.

But here's where it gets weird—within hours, the same institution issued an urgent clarification. They're calling it a "procedural error." Apparently, the list went public before completing internal review processes. Officials now claim some groups were mistakenly included despite having no verified connections to ISIS or other internationally recognized terror networks.

The rapid reversal raises questions about the vetting procedures behind such high-stakes financial decisions. Asset freezes carry serious implications for cross-border transactions and can trigger compliance headaches for financial institutions operating in the region.

For those watching regulatory developments in emerging markets, this incident highlights how quickly policy announcements can shift—and why due diligence matters when navigating complex jurisdictions. The episode also underscores the delicate balance central banks face between security concerns and diplomatic sensitivities.

No word yet on whether the initial designation will be reinstated after proper review, or if this marks a complete policy retreat.