Millions of Dollars for Drones and Explosives: Washington Targets Hezbollah's Funding Lifelines

The United States is exploring expanded financial actions against networks associated with Iran's Islamic Revolutionary Guard Corps (IRGC) and the Lebanese militia Hezbollah, following new information about transfers of tens of millions of dollars to the party for purchasing explosives and manufacturing drones. This comes amid a review of the role of exchange houses and commercial intermediaries in providing funds necessary to rebuild its military capabilities.

Options under consideration include expanding sanctions lists, pursuing the ultimate beneficiaries of intermediary companies, and tightening scrutiny on cash and trade transfers linked to Iran. This coincides with US demands for Lebanese authorities to take more effective action against institutions facilitating Hezbollah's financing.

Exchange Networks and Intermediary Companies
A source at the US Treasury Department's Office of Foreign Assets Control (OFAC), familiar with sanctions imposed on Hezbollah, says the review focuses on three financial pathways previously used by IRGC-linked networks. These include exchange houses, transfers resulting from commodity trade, and the movement of cash outside banking institutions.

Speaking to "Erm News," the source clarified that priority lies in identifying entities that managed recent transfers, comparing them with networks listed on sanctions lists, and verifying whether any companies or individuals have assumed new roles following previous US actions.

The American source indicates that the files under review include examining the ownership of commercial institutions and money flows between companies involved in import-export deals, particularly in cases raising suspicions of hiding the beneficiary entity.

He confirms that potential measures target individuals and institutions proven to provide financial support or services facilitating access to funds for Hezbollah, with each case subject to evidence review before sanctions decisions are issued.

Last September, the US Treasury announced information regarding the use of front companies and oil sales revenues by the IRGC's Quds Force to fund Hezbollah, identifying Lebanese exchange dealers within money transfer networks.

The US information included large sums transferred via Hussein Ibrahim and Abdullah Hamieh between May and September 2025, while Osama Jaber was named among those who collected funds for Hezbollah's financial officials.

In August, Washington sanctioned ten individuals within a network transferring cash via commercial flights between Lebanon, Turkey, the UAE, and Iran, considering it one of the methods used to bypass financial restrictions.

The American source adds that the new review addresses the possibility of expanding cooperation with foreign authorities to identify ongoing activity by previous networks and verify if some transactions have shifted to institutions not covered by sanctions.

Beirut Faces New Financial Demands
Lebanese security sources revealed that reviewing transfers related to sanctioned entities requires gathering information from banks, exchange houses, and regulatory bodies, along with verifying company ownership and suspicious commercial operations.

They explained to "Erm News" that procedures include analyzing financial reports, matching data with sanctions lists, and referring cases with serious suspicions to competent judicial authorities, according to the body's legal powers.

Lebanese sources note that one government challenge relates to the use of cash and commercial companies outside traditional banking channels, necessitating cooperation between financial, customs, and judicial authorities to determine the nature of transactions and the source of funds.

Over the past months, Washington has expanded sanctions on financial institutions linked to Hezbollah, including entities connected to the Al-Qard Al-Hassan Association and commercial networks using front companies to execute transactions for the party.

Additional Sanctions and Rearmament
These developments followed a report by Reuters, citing Lebanese security sources, stating that Hezbollah received tens of millions of dollars from Iran recently, with part directed toward buying explosives, producing drones, and rehabilitating command systems.

The American source states that additional decisions will depend on identifying entities responsible for funding and procurement, focusing on disrupting financial resources used to acquire military equipment and preventing intermediary companies from continuing to serve sanctioned networks.

Lebanese sources emphasize the importance of converting shared information with foreign authorities into specific financial files, including names of beneficiaries, transactions, and documents, paving the way for regulatory and judicial actions.

Future steps remain tied to the results of US and Lebanese financial reviews, as Tehran attempts to continue militarily supporting Hezbollah, while Washington seeks to reduce the militia's ability to obtain funds needed for rearmament.