Israel and US Target Hezbollah’s Financial Networks to Weaken Its Power

Since March 2024, Israel has expanded its campaign against Hezbollah beyond military targets to include the group’s financial infrastructure. Israeli airstrikes destroyed over a dozen branches of "Al-Qard Al-Hasan," Hezbollah’s de facto bank, along with money exchangers linked to Iranian funding and fuel stations generating revenue for the group. This strategy aims to disrupt Hezbollah’s ability to pay fighters, rebuild infrastructure, provide compensation, and maintain its extensive social welfare network that has sustained its support among Lebanon’s Shiite population for decades.

According to a detailed report by The New York Times and journalist Ronen Bergman, Hezbollah is currently facing its most severe economic pressure in years. While the group continues to pay most of its fighters, social services and compensation payments have been cut or delayed, forcing Hezbollah to prioritize its spending. The organization’s spokesman, Youssef al-Zein, acknowledged the financial strain but insisted Hezbollah can withstand the pressure.

Hezbollah has long operated a "state within a state" in Lebanon, running schools, hospitals, media outlets, and businesses funded largely by Iran. However, the recent Israeli strikes and the fall of Bashar Assad’s regime in Syria have isolated Hezbollah from its traditional supply routes, forcing Iran to find alternative channels through the UAE, Turkey, and Iraq using informal money transfer systems known as hawala.

The US and Israel have coordinated efforts to tighten financial controls in Lebanon, including pressuring the Lebanese government to suspend flights from Iran and reform the central bank, which Hezbollah exploited for money laundering. Sanctions have targeted key money exchangers and financial networks linked to Hezbollah, though the group has adapted by increasing gold trading and other fundraising methods.

Despite these efforts, experts caution that Hezbollah and Iran have historically adapted to sanctions and financial pressures by developing new funding routes. The ongoing financial campaign represents a quieter but critical front in the broader conflict, as Israel and the US seek to undermine Hezbollah’s operational capabilities by cutting off its financial lifelines.

Summary: Israel and the US have intensified efforts to cripple Hezbollah by targeting its financial networks, including banks and money exchangers, aiming to disrupt funding from Iran and weaken the group’s military and social infrastructure amid ongoing conflict in Lebanon.