Reuters: US-Iran deal could give Hezbollah a financial lifeline

A reported memorandum of understanding expected to be signed on Friday between the United States and Iran could provide Hezbollah with a major political and financial boost, Reuters said on Wednesday. According to regional and Lebanese sources, Tehran has promised the group increased funding once its assets are unfrozen, in an effort to help it recover from heavy losses suffered in the war.

The report said the emerging deal also intersects with the tense situation in southern Lebanon. Iran is demanding a full Israeli withdrawal as part of the agreement and has threatened military retaliation, while Israel insists on keeping IDF forces in place to counter Hezbollah threats. Four sources familiar with ties between Tehran and Hezbollah said the Iranian funding pledge appears designed to strengthen the group politically and financially in Lebanon.

No source provided figures, but two regional diplomats briefed by Tehran, a senior Lebanese source, and another Lebanese source all said Iran had assured Hezbollah it would receive more money once assets are released. Hezbollah’s media office said Iran had publicly declared its support and that assistance continues. On the question of whether the group will receive a share of the unfrozen funds, the office said Tehran would keep supporting Lebanon, “regardless of the details of how it gets its money back.”

An unnamed U.S. official said Washington told Iran that “funds will not be unfrozen if they are intended for any terrorist organization.” The official added that the memorandum is meant to pressure Iran to restrain its proxy groups, because they would not be able to access any benefits of the deal otherwise. Earlier on Wednesday, Hezbollah leader Naim Qassem welcomed what he called “the great victory” and urged using the post-deal moment to expel Israel from Lebanon. He also called for full implementation of the November 2024 ceasefire, deployment of the Lebanese army south of the Litani River, and rejection of buffer zones or a “yellow line.”

Iran has continued financing Hezbollah despite years of U.S. sanctions, and the U.S. Treasury said Tehran transferred $1 billion to the group in the first 10 months of 2025. Iranian Foreign Minister Abbas Araghchi said on Tuesday that any continued Israeli military presence in Lebanon would be considered a violation of the memorandum. A Saudi-owned report in al-Sharq al-Awsat said Iran had already updated its Lebanese allies on the draft deal and its implementation phases, including what a Lebanese source described as a requirement for Israel to begin a gradual withdrawal after Friday’s signing and complete it before the nuclear deal is signed, within 60 days. The source said Iran would not sign the nuclear deal with Washington before a full Israeli withdrawal from Lebanese territory.