Israel and the United States have dramatically intensified their financial campaign against Hezbollah, targeting the terrorist organization’s banking network, smuggling routes and sources of Iranian funding in an effort to cripple its ability to finance both military operations and its extensive social-services network.

When fighting between Israel and Hezbollah resumed in March, some of Israel’s first targets were not rocket launchers or tunnels but financial institutions. Israeli fighter jets destroyed more than 10 branches of Al-Qard Al-Hassan, the financial institution that effectively served as Hezbollah’s banking system in Lebanon.

Additional strikes targeted currency-exchange businesses allegedly used by Iran to transfer funds to Hezbollah, as well as gas stations that generated revenue for the terrorist organization.

The campaign has been accompanied by close coordination between Israel, the Trump administration and the Lebanese government aimed at cutting Hezbollah off from its financial lifelines.

According to U.S. State Department estimates, Iran has historically provided Hezbollah with approximately $700 million annually, representing a significant portion of the organization’s budget. Tehran reportedly attempted to increase its support as Hezbollah faced enormous expenses from the ongoing conflict.

The collapse of the Assad regime in Syria in late 2024 dealt another major blow to Hezbollah by disrupting key land-based smuggling routes previously used to move weapons and money from Iran into Lebanon.

Iran subsequently sought alternative methods of transferring money, including through Beirut’s international airport. According to The New York Times, U.S. and Israeli officials said Iranian diplomats transported suitcases containing large amounts of cash aboard civilian flights.

Following warnings from Washington and Jerusalem, the Lebanese government took a series of significant steps to restrict the flow of Iranian money. Direct flights from Iran to Beirut were suspended, airport personnel considered close to Hezbollah were removed, and security officers coordinating with the United States were deployed.

Lebanese Prime Minister Nawaf Salam also warned Iranian officials that Lebanon would not tolerate interference in its internal affairs.

At the same time, the Trump administration pushed for reforms within Lebanon’s financial system. Lebanon’s central bank governor, Karim Souaid, has moved to remove individuals linked to Hezbollah, increase oversight of money-transfer companies and tighten scrutiny of Lebanon’s cash-based economy, which Hezbollah has allegedly exploited for money laundering.

With access to conventional banking channels increasingly restricted, Hezbollah has reportedly become more dependent on informal hawala networks operating through countries including the United Arab Emirates, Turkey and Iraq. Increased international scrutiny, however, has made those channels more difficult to use.

The financial pressure is now reportedly affecting Hezbollah’s support base within Lebanon’s Shiite community.

Hezbollah operates an extensive network of hospitals, schools and welfare programs, but the organization is increasingly prioritizing its military budget as available resources decline.

Hezbollah spokesman Youssef al-Zein acknowledged that the organization has completely frozen compensation payments previously promised to hundreds of thousands of displaced residents and families whose homes were destroyed during the fighting. Families had previously been promised payments of between $12,000 and $14,000.

While salaries for Hezbollah operatives and full-time fighters are reportedly still being paid in most cases, supporters have complained that medical assistance and reconstruction commitments have been suspended.

Hezbollah is now attempting to find alternative sources of cash, including establishing companies involved in gold trading and selling gold reserves and foreign-held gold.

The efforts come after Israeli strikes reportedly destroyed a significant portion of Hezbollah’s foreign-currency and gold reserves.

Despite Hezbollah’s history of adapting to financial pressure, the combined Israeli, American and Lebanese measures have reportedly left the terrorist organization facing one of the most severe financial crises in its history.

(YWN World Headquarters – NYC)