Israel and US Agree to Cut Hezbollah's Financial Lifelines Amid Economic Pressure
Israel and the United States have agreed on a joint effort to weaken Hezbollah by targeting its financial infrastructure, according to reports from Lebanon. This new strategy focuses on tightening regulation and oversight of Hezbollah's funding sources, including money changers, financial transfers, and gold trade networks. The move comes amid increased American and Israeli pressure following recent talks in Rome.
Lebanese sources told the news site Aram News that the focus has shifted from Hezbollah's military assets, such as rockets and tunnels, to what Western officials call the "Hezbollah economy." The rationale is that as long as Hezbollah's financial networks remain intact, the group can rebuild its military capabilities even after significant strikes.
The US Treasury has recently expanded sanctions against entities and individuals linked to Hezbollah's financing, particularly those involved in gold trading, which is suspected of being used to convert assets into cash and circumvent financial restrictions. The American approach emphasizes enforcing existing laws on non-profits and financial institutions, strengthening anti-money laundering and counter-terrorism financing regulations, and increasing scrutiny of informal money transfer systems and electronic wallets.
Washington views significant financial activity outside formal banking channels as a major challenge, enabling Hezbollah to manage resources beyond state oversight. The campaign against Hezbollah's economic base is part of a broader US vision for Lebanon's future, aiming not only to remove fighters from the border or dismantle military arsenals but also to dismantle the parallel economic and legal systems Hezbollah has built over the years.
This marks a strategic expansion of pressure on Hezbollah from military to economic domains, seeking to undermine the organization's long-term operational sustainability.
