Iran sent over $1 billion to Hezbollah through Israeli ally

A UAE official told the outlet that the country rejects attempts to exploit its territory for covert funding and is cooperating with international partners to prevent such activity, despite the country’s reputation as a transit point for illegal money flows.

By Vered Weiss, World Israel News

Iran has funneled more than a billion dollars to Hezbollah this year through financial networks operating out of the United Arab Emirates, one of Israel’s peace partners, according to figures cited by the US Treasury Department and reported by the Wall Street Journal.

The transfers, attributed to Iran’s Quds Force, highlight the scale of Tehran’s effort to sustain Hezbollah at a moment when the group has absorbed heavy losses in its war with Israel.

Analysts familiar with Hezbollah’s situation say the organization is attempting to rebuild after months of fighting along the northern border. David Schenker of the Washington Institute said Iran “is not backing away from its commitment to its premier regional proxy,” adding that Hezbollah’s immediate priority is recovery. Hanin Ghaddar, another senior fellow at the institute, noted that the current flow of funding dramatically exceeds Hezbollah’s prewar finances. She said the group’s previous annual budget had been about one billion dollars, but “after the war, they need a lot more.”

The report said the money moved through a network of exchange offices, private companies, and couriers tied to Iran-based operatives, who route oil profits into Dubai before transferring the cash to handlers in Lebanon.

Those intermediaries are described as responsible for distributing the funds and settling accounts after delivery.

The arrangement became central to Iran’s strategy after the collapse of the Assad regime in Syria, Lebanon’s ban on direct flights from Iran, and tighter airport scrutiny that disrupted previous channels involving couriers carrying cash-filled suitcases.

American officials are also monitoring possible transfers through Turkey and Iraq, raising concerns about additional routes that may be used for covert financing. The Journal noted that Hezbollah continues to receive money from other global operations, including drug trafficking, the diamond trade, and illicit financial schemes.

A UAE official told the outlet that the country rejects attempts to exploit its territory for covert funding and is cooperating with international partners to prevent such activity, despite the country’s reputation as a transit point for illegal money flows.

Hezbollah, the Lebanese prime minister’s office, and Iran’s delegation to the United Nations did not comment on the report.