Iran funneled $1 billion to Hezbollah despite sanctions, US senior official warns

The U.S. undersecretary for terrorism and financial intelligence, John Hurley, revealed on Friday that the Islamic Republic of Iran has transferred approximately $1 billion to the Hezbollah terrorist organization in Lebanon despite Western sanctions on Tehran’s strained economy. Hezbollah is Iran’s most powerful terrorist proxy and one of the most influential political and military forces inside Lebanon.

Hurley confirmed that the Trump administration’s efforts to cut Iranian funding to Hezbollah are intended to help the Lebanese people “get their country back.”

“There’s a moment in Lebanon now. If we could get Hezbollah to disarm, the Lebanese people could get their country back,” Hurley said told Reuters.

“The key to that is to drive out the Iranian influence and control that starts with all the money that they are pumping into Hezbollah,” he added. “Even with everything Iran has been through, even with the economy not in great shape, they’re still pumping a lot of money to their terrorist proxies.”

Hezbollah forces are currently severely weakened after a long and intense war with Israel, where the IDF has targeted the terror group's top leadership, including eliminating its top leader Hassan Nasrallah and killing several thousand Hezbollah operatives. In addition, Israel neutralized the majority of Hezbollah’s once vast missile, rocket and drone arsenal that threatened Israel's national security. Hezbollah agreed to a ceasefire with Israel in November 2024.

In February, U.S. President Donald Trump signed an executive order to put “maximum pressure” on the Iranian regime due to its sponsorship of international terrorism and aggression against Israel and moderate Arab states.

The executive order states that the Iranian regime is “the world’s leading state sponsor of terror,” asserting that it “bears responsibility” for the Oct. 7, 2023, attacks carried out by its Gaza proxy, Hamas, as well as for supporting Houthi attacks, and that it “commits grievous human rights abuses.”

On Friday, Mexico announced its cooperation with Israeli and American intelligence to prevent an Iranian plot to assassinate Israeli Ambassador Einat Kranz-Neiger.

In addition to Washington’s “maximum pressure” on Tehran, Israel has also targeted Hezbollah’s financial assets and continues targeting Hezbollah’s efforts to rearm and regroup. While Hezbollah is seriously weakened, it is still a powerful militia with considerable influence in Lebanese society and beyond.

Last week, U.S. ambassador to Türkiye and special envoy for Syria, Tom Barrack, said Hezbollah still threatens Israel’s security.

“Thousands of missiles in southern Lebanon still threaten Israel,” Barrack warned. “It makes no sense that there is no dialogue between the two countries. Lebanon has no time to waste. It must consolidate its weapons. Israel may respond in Lebanon depending on developments."

Hezbollah is believed to still possess some 20,000 rockets compared to its pre-war arsenal, which likely amounted to between 150,000 and 200,000.

The United States and the newly formed Lebanese government have both urged Hezbollah to lay down its arms, but the group has shown no willingness to comply. Lebanese Armed Forces, already overstretched and under-resourced, allegedly lack the capacity to confront or disarm Hezbollah, leaving the organization firmly in control of its arsenal. Israeli officials warn that, rather than scaling back, Hezbollah is actively expanding and modernizing its military capabilities. Barrack – who had initially expressed hope for the new Lebanese leadership – acknowledged that Lebanon has effectively slipped into failed-state status.

“Lebanon is a failed state,” Barrack said. “It has no central bank; its banking system has collapsed. There is no electricity; people depend on private generators. Even water and education are provided by private suppliers. The state is Hezbollah, which in the south provides water and education."

Meanwhile, Tehran reportedly continues to develop closer ties with China and Russia in an effort to circumvent the Western sanctions.