The US Treasury Department announced the designation of seven high-level members of Iran-backed Iraqi militias as Specially Designated Global Terrorists on April 17. Their organizations are previously US-designated terror groups that, operating under front groups, have conducted numerous attacks on the US presence in Iraq since the start of the war with Iran on February 28.

Efforts described by Iran-backed Iraqi militias as humanitarian campaigns increasingly show signs of serving as a parallel financial pipeline that also fuels Iran’s current war effort and regional proxy network. Across Iraq, groups aligned with Tehran are mobilizing donation drives framed as a religious obligation and in wartime solidarity.

The Islamic Resistance in Iraq (IRI), a coalition of Iran-backed Shiite militias, claimed over a dozen drone attacks against “enemy bases in Iraq and the region” and issued statements of support for the Tehran regime in retaliation for US and Israeli strikes on Iran. The groups are also responding to unclaimed airstrikes on Iraq that have reportedly killed at least six people, including four confirmed Iraqi militiamen.

On September 17, the US State Department designated four Iran-backed Iraqi militias as Foreign Terrorist Organizations (FTOs). These groups, previously listed as Specially Designated Global Terrorists (SDGTs), have received support from the regime in Tehran and attacked US forces and interests in Iraq and across the Middle East.

Iranian-backed militias in Iraq have refrained from attacking Israel directly since the start of the war between Israel and Iran on June 13. However, there have been two unclaimed attacks on US interests in Iraq since Operation Rising Lion began, and the Iraqi groups have ramped up anti-Israeli and anti-American rhetoric, threatening US interests and mobilizing supporters through propaganda channels.

Kataib Imam Ali is the sixth Iran-backed Shiite militia in Iraq that has been listed by the US as a terrorist organization. The group’s secretary general was previously designated for his ties to Iran’s Islamic Revolutionary Guards Corps–Qods Force and its former commander, Qassem Soleimani.

Pro-Iranian militias in Iraq, collectively part of the Hashd al Shaabi (Popular Mobilization Units), face increasing calls to place their arms under state control or lay them down entirely. The fall of the Assad regime, a new administration in Washington, and the Gaza ceasefire have put these groups under the spotlight in Iraqi politics.
