Hezbollah funding survives US-Israeli crackdown

Despite coordinated efforts by the U.S., Israel, and Lebanon to disrupt Hezbollah's funding, the Iranian proxy has largely adapted by leveraging informal cash and hawala networks, according to Israeli security experts. These measures have created operational hurdles and increased transaction costs, but have not severed the group's funding or significantly weakened its support base. Tal Beeri of the Alma Research and Education Center noted, "The pressure has accelerated Hezbollah's reliance on a parallel financial system that was already well established, particularly on cash, currency exchange businesses and hawala networks." Hezbollah's financial apparatus was deliberately built outside conventional banking channels, utilizing a network of Lebanese currency exchange businesses and hawala to receive funds from Iran, Shi’ite communities, and criminal networks.

• The U.S. Treasury Department reported that Iran's Quds Force funneled over $1 billion to Hezbollah through Lebanon's cash economy since early 2025.
• While Lebanese authorities have implemented tighter cargo inspections and central bank scrutiny, experts like Dr. Jacques Neriah are skeptical that the state can sustain these measures due to Hezbollah's influence and the country's political system.
• Hezbollah's social services, though experiencing some belt-tightening and delays in compensation, continue to foster dependency among its Shi’ite support base, especially where the Lebanese state provides no effective alternative.
• Experts conclude that financial pressure alone is insufficient; lasting strategic impact requires a viable state alternative for the Lebanese population to reduce reliance on Hezbollah's ecosystem.