Iran restores weapons-smuggling routes to Hezbollah via Turkey, sea channels and crypto

The Islamic Republic of Iran has reestablished the weapons smuggling network to its primary terrorist proxy, Hezbollah, using Turkey and maritime channels, while transferring funds through the cryptocurrency market.

Iran’s elite Quds Force previously relied on Syria as a primary route for transferring weapons and funds to Hezbollah in Lebanon. However, the fall of the pro-Iran Assad regime in December 2024 largely severed Syria from Iran’s land- and sea-based smuggling network. In addition, Israel has prevented Iranian supply flights to Hezbollah from landing in Lebanon.

During the Operation Rising Lion offensive against Iran in June, Israel eliminated Behnam Shahriyari, a senior Quds Force commander who led the Weapons Transfer Unit (Unit 190) that was responsible for transferring weapons to Hezbollah and other Iranian-backed terrorist proxies in the region. Israel also eliminated Saeed Izadi, the Islamic Revolutionary Guard Corps’ (IRGC) “Palestine Corps” chief who played a leading role in transferring weapons to Hezbollah and Hamas. Izadi reportedly played a key role behind the Hamas Oct. 7, 2023, massacre.

However, despite these significant setbacks, the Iranian regime quickly found Turkey, the sea and the crypto market as alternative routes for its smuggling network to Hezbollah. 

U.S. Undersecretary for Terrorism and Financial Intelligence, John Hurley recently revealed that Iran had during the past year succeeded in transferring $1 billion to Hezbollah despite Western sanctions on the regime in Tehran. 

“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,” Hurley assessed. “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."

The Israel-based Meir Amit Intelligence and Terrorism Information Center expressed concerns about the Iranian regime’s efforts to rebuild its shattered terrorist proxy network with Hezbollah widely considered to be its main proxy. 

“The U.S. disclosure of major IRGC financial support to Hezbollah, along with exposure of the smuggling methods, shows Iran and Hezbollah found alternative ways to overcome the geopolitical changes in Lebanon and the Middle East since the cease-fire,” the center stated.

The Trump administration is also concerned about this development, which it believes could undermine Washington’s peace efforts in the volatile Middle East. During a meeting in Beirut last week with President Joseph Aoun and Prime Minister Nawaf Salam, U.S. officials demanded that Lebanon actively shut down Hezbollah’s funding channels as part of Washington’s goal of dismantling the group. Washington reportedly gave Beirut a deadline until the end of 2025 to implement the necessary reforms and halt the Iran-Hezbollah weapons-funding network. The U.S. delegation warned that Lebanon risks losing American support if it fails to act against Hezbollah.

While Tehran’s and Hezbollah’s illicit activities undermine Lebanon’s viability as an independent state, pundits have assessed that the Lebanese government is likely incapable and too weak to solve the problem. 

Earlier this month, the U.S. ambassador to Turkey and special envoy for Syria, Tom Barrack, openly admitted for the first time that Lebanon has become a failed state. 

“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."

Hezbollah previously had between 150,000 and 200,000 rockets. After attacking Israel and being severely degraded, Hezbollah is believed to still possess some 20,000 rockets that threaten Israel’s security. Hezbollah is currently trying, with Iranian assistance, to rebuild its rocket and military arsenal.