The New York Times: Hezbollah Facing Worst Economic Crisis in Years
According to documents and official sources, the campaign against Hezbollah's funding sources is taking a heavy toll. Despite increased Iranian aid, the organization is struggling to cover its war expenses.
The New York Times reported on Sunday that Hezbollah is facing its worst economic crisis in years, against the backdrop of the war with Israel and the US. This is according to documents obtained by the newspaper and interviews with Lebanese, American, and Israeli officials.
When Israel launched the latest war against Hezbollah in March, the first targets the army warned about were not weapons depots or underground headquarters, but banks.
Israeli fighter jets destroyed more than a dozen branches of a financial institution known as "Al-Qard al-Hassan," which has been accused for years of operating as Hezbollah's bank in Lebanon. Subsequently, additional airstrikes were carried out against money changers used by Iran to transfer funds to Hezbollah, as well as against gas stations that generated revenue for the organization. Through these strikes, Israel sent a clear message: not only are Hezbollah's weapons stockpiles in the crosshairs, but also its means of funding.
According to the report, the bombings were the culmination of an aggressive campaign by Israel, the Trump administration, and the Lebanese government designed to harm Hezbollah economically by disrupting its funding channels.
In the months leading up to the war, the Lebanese government, under pressure from the Trump administration, worked to block routes used by Hezbollah to receive funds, including the international airport in Beirut. Washington also exerted pressure on the Central Bank of Lebanon to tighten oversight of the country's cash economy.
Hezbollah is struggling to fund its extensive social welfare network, which for years has been a base of support among the Shiite population in Lebanon. At the same time, the organization is giving increasing priority to military expenditures after Israeli strikes severely damaged its operational capabilities.
Youssef al-Zein, a spokesperson for Hezbollah, told The New York Times in May that the organization had stopped compensation payments promised to its supporters, as it struggles to meet the needs of hundreds of thousands of displaced people.
The US State Department estimated before the war that Iran transferred about $700 million a year to Hezbollah, accounting for most of its one-billion-dollar annual budget. Although Iran has increased financial aid over the past year, these funds are insufficient to cover the organization's significant war expenses.
Previously, American officials passed an Israeli warning to the Lebanese government that Iran was transferring suitcases full of US dollars to Hezbollah on civilian flights to Beirut. Following the warning, Lebanon suspended all flights from Iran, and airport workers identified with Hezbollah were removed from their positions.
Another shift in the balance of power was evident during the visit of Ali Larijani, head of Iran's National Security Council, last August. During his meeting with Lebanese Prime Minister Najib Mikati and other officials, the Lebanese side made it clear that they would not tolerate Iranian interference in their internal affairs.
