Israel targets Hezbollah’s finances as cash crunch deepens

Israel, the United States and Lebanon have stepped up efforts to disrupt Hezbollah’s financial networks, targeting the group’s funding channels as its military capabilities and social welfare system face growing pressure, The New York Times reports.

When Israel launched its latest war against Hezbollah in March, its first targets included more than a dozen branches of Al-Qard al-Hassan, a financial institution long accused of functioning as Hezbollah’s de facto bank in Lebanon. Israeli strikes also hit exchange shops allegedly used to transfer Iranian funds to Hezbollah and gas stations generating revenue for the group.

The campaign followed months of efforts by Washington and the Lebanese government to restrict Hezbollah’s access to money, including tighter controls at Beirut’s international airport and increased oversight of Lebanon’s largely cash-based economy.

According to documents reviewed by The New York Times and interviews with Lebanese, US and Israeli officials and Hezbollah insiders, the measures have left Hezbollah facing its most serious financial strain in years.

The group has nevertheless continued to receive substantial support from Iran. The US State Department estimated before the war that Tehran provided about $700 million annually, accounting for most of Hezbollah’s estimated $1 billion budget. Officials said Iran increased financial assistance over the past year, but the funding has not been sufficient to cover the group’s growing wartime expenses.

“The scale of the battle’s demands and the displacement have placed significant burdens on Hezbollah,” Hezbollah spokesman Youssef al-Zein told The New York Times. “Resources are being managed according to priority,” he said, adding: “There is undoubtedly pressure, but Hezbollah is able to overcome it.”

The financial crackdown intensified after the fall of Syrian President Bashar al-Assad’s government disrupted a key land route connecting Hezbollah to Iran. Tehran subsequently sought alternative channels, including Beirut’s airport and informal money-transfer networks.

The pressure has also affected Hezbollah’s extensive welfare network. Al-Zein said the group halted compensation payments promised to families whose homes were destroyed during the 2024 war, while some social services have been reduced.

Hezbollah has sought alternative sources of cash, including gold trading. The US Treasury said senior Al-Qard al-Hassan officials had established gold-trading companies to raise funds.

The Trump administration is now pressing Lebanon to shut down Al-Qard al-Hassan altogether.

“They are totally silent,” said Hassan, a Hezbollah supporter waiting for promised assistance after his home was destroyed.

By Vafa Guliyeva