Media: Hezbollah runs on $50 million a month, powered by Iran, shadow finance

Hezbollah is estimated to require around $50 million per month to sustain its operations, according to a Western intelligence report seen by Euractiv, underscoring the scale and resilience of the Iran-backed group’s financial network despite sustained military pressure since 2024.

The report suggests that these funds cover a wide range of expenditures, including salaries for fighters, procurement of military equipment, and the maintenance of extensive welfare programmes supporting families of killed or wounded members. Analysts say this social support structure remains a key pillar of Hezbollah’s domestic legitimacy in Lebanon.

Much of the group’s financing is assessed to come directly from Iran, which has provided close to $1 billion since 2025, according to the intelligence assessment. These transfers are reportedly derived largely from Iranian state revenues linked to oil exports, primarily to China, and are moved through complex “shadow banking” systems designed to bypass international sanctions.

Beyond state funding, Hezbollah is also believed to rely on a diversified international financial ecosystem. This includes donations from sympathisers in Lebanon and the global diaspora, as well as revenues from businesses allegedly linked to the organisation, including firms operating in the petroleum and gold sectors.

The intelligence report describes a multi-layered network that channels funds through intermediaries across several jurisdictions. These include front companies in Hong Kong, the United Arab Emirates and Türkiye, which allegedly help move tens of millions of dollars originating in China before routing them to Lebanon via Lebanese business figures.

Among those identified is a Lebanon- and Dubai-based gold sector operator referred to in the report as Hassan K., who is accused of transferring large sums through exchange houses in Türkiye and using couriers and cross-border routes via Syria. The report also alleges continued involvement of Syrian financial channels, despite reported efforts by Damascus to tighten controls on Hezbollah-related activity since the fall of the Assad government in 2024.

Other figures named in the assessment include operators linked to exchange houses in Lebanon and abroad, such as Trade Point International, previously designated by the US Treasury for alleged financial services to Hezbollah. Despite past sanctions and arrests in Europe, the report suggests some individuals continue to play roles in facilitating transactions through informal mechanisms, including the hawala system.

Iranian-linked transfers are also said to rely on physical cash movements, including deliveries by couriers and, in some cases, diplomatic channels. Intelligence officials cited in the report argue that such methods remain difficult to disrupt due to their informal and decentralised nature.

The report further highlights the role of Hezbollah’s own financial institution, the Al-Qard al-Hassan Association, which operates in Lebanon and has previously been designated by the United States. It functions as a quasi-banking system, pooling deposits from supporters alongside Iranian-linked funds to finance salaries, arms procurement and operational costs.

By Aghakazim Guliyev