War-torn Iran sends $200 million to Hezbollah as Lebanon reels from devastation

Israel's bombardment and ground offensive in Lebanon has displaced hundreds of thousands of people, devastated villages and left much of Hezbollah's support base facing the enormous cost of war. Against that backdrop, Hezbollah has received $200 million from Iran to help families affected by the conflict, according to news agency Reuters.

Hezbollah received the money from Iran last month, according to sources cited in the report. This is the first significant financial assistance from the group to its supporters affected by this year's war, at a time when both Hezbollah and its Iranian backer are facing mounting financial pressure.

The transfer was completed despite the tightening US economic squeeze on Iran and the growing difficulties involved in moving money to its Lebanese ally.

As per the report, the risks surrounding the transaction came with a steep price. Intermediaries involved in transferring the money charged a 20 per cent fee. One source said that was four times the normal rate.

A Hezbollah official confirmed to Reuters that money had been secured but did not disclose where it came from. The official said the group would announce a plan for distributing the funds in the coming days. The Iranian foreign ministry, Iran's permanent mission in Geneva, the US State Department and the Lebanese government have not commented on the matter.

AID FOR 50,000 FAMILIES

The immediate priority is expected to be families whose homes and villages were destroyed or have become inaccessible because of the Israeli occupation. Around 50,000 families could be eligible for the first round of assistance, with Hezbollah planning to provide an initial payment of USD 3,000 to each family, according to the report.

The planned payments could offer a lifeline to families whose homes were destroyed or whose villages remain inaccessible after months of fighting. But the planned payments also underline the scale of the challenge facing Hezbollah as it tries to restore the support networks that have long been central to its influence in Lebanon.

Israel's bombardment and ground invasion uprooted hundreds of thousands of Hezbollah's Shi'ite Muslim constituents after the group entered the wider regional conflict in support of Iran on March 2.

However, until now, there has been little visible assistance from Hezbollah for many of those displaced.

It was founded by Iran's Revolutionary Guards in 1982 and has suffered heavy Israeli blows in two wars since 2024. Washington designates Hezbollah as a terrorist organisation.

IRAN'S FINANCIAL LIFELINE UNDER PRESSURE

Iran has been a vital support for Hezbollah despite years of severe US sanctions.

The US Treasury Department estimated that Iran transferred USD 1 billion to Hezbollah during the first 10 months of 2025.

Iran has never admitted financing Hezbollah. Its policy of supporting regional armed groups has also triggered anger among some Iranians during previous periods of domestic unrest, particularly when economic hardship has deepened.

That issue could become even more sensitive now as Iran faces worsening economic conditions and increasing pressure from Washington.

Iran had promised Hezbollah additional funding after Tehran reached an interim agreement with Washington in June that allowed Iran to sell oil, Reuters reported. But that agreement collapsed in July.

Since then, Washington has stepped up pressure on Tehran by tightening sanctions and naval blockade to restrict Iranian oil exports. That has made an already difficult financial environment even harder for Hezbollah.

'AVAILABLE RESOURCES AND DONATIONS'

The group has nevertheless indicated that it intends to play a role in helping people displaced by the war.

Hezbollah leader Naim Qassem said in a speech last month that the group would soon contribute to a project aimed at housing thousands of people forced from their homes by the conflict. He said the project would rely on "available resources and donations".

Hezbollah's ability to provide social services and post-war financial assistance has historically been an important part of its relationship with its supporters.

After its 2006 war with Israel, it moved quickly to distribute cash payments to affected families and assist with rebuilding in Beirut's southern suburbs, a key Hezbollah stronghold.

This time, however, reconstruction has been far slower and less visible. Lebanese Prime Minister Nawaf Salam said last month that rebuilding after the two wars since 2024 could cost more than USD 27 billion.

HOW IRAN GOT THE MONEY TO HEZBOLLAH

The mechanics of getting the money into Lebanon remain unclear.

The sources cited in the report did not reveal how the USD 200 million reached Hezbollah. But one of them said the group was finding it increasingly difficult to rely on financial companies that had previously helped move money into Lebanon.

Firms based in Iraq and Dubai were no longer viable options, the source said. Financial channels in Turkey were also coming under pressure, further narrowing the routes available to Hezbollah.

The restrictions have raised the stakes around Hezbollah's access to cash. One source described money as Hezbollah's "oxygen" and said the group had continued paying its fighters as well as families of members killed in combat despite the growing difficulties in securing funds.

The conflict has taken a particularly heavy toll on Lebanon's Shi'ite Muslim community, from which Hezbollah draws much of its support.

Israeli forces have destroyed villages across parts of southern Lebanon that they have seized, with Israel saying the campaign is aimed at preventing further attacks by Hezbollah on northern Israel.

More than 4,300 people have been killed in Israeli attacks in Lebanon since March 2, according to Lebanon's health ministry. The figures do not distinguish between civilians and combatants.

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With inputs from agencies