NYT Report: Hezbollah Faces Its Worst Economic Crisis in Years

The New York Times reported that Hezbollah is facing its most severe economic crisis in years, amid the war against Israel and the United States. According to documents and interviews, the campaign against the organization's funding sources is taking a heavy toll. Israel attacked branches of Al-Qard Al-Hasan bank, money changers, and gas stations. Iran increased its aid, but the money is not enough to cover war expenses.

The New York Times reported on Sunday that Hezbollah is facing its most severe economic crisis in years, amid the war against Israel and the United States. The report is based on documents obtained by the newspaper and interviews with Lebanese, American, and Israeli officials. Israel launched a war against Hezbollah in March, and the initial targets included banks, not just weapons depots. Israeli fighter jets destroyed more than a dozen branches of a financial institution called Al-Qard Al-Hasan, which was accused of operating as Hezbollah's bank. Subsequently, money changers used by Iran to transfer funds were attacked, as well as gas stations that generated revenue for the organization. The bombings were the culmination of an aggressive campaign by Israel, the Trump administration, and the Lebanese government to hit Hezbollah economically. The Lebanese government, under American pressure, blocked money transfer routes, including Beirut's airport. According to estimates, Iran transfers about $700 million a year to Hezbollah, most of the organization's annual budget, estimated at about $1 billion. Iran increased its aid, but the money is not enough to cover war expenses. Hezbollah is struggling to fund its social welfare network and has stopped compensation payments to supporters. Hezbollah spokesman Youssef al-Zein said the organization is struggling to meet the needs of hundreds of thousands of displaced people. The visit of Ali Larijani, head of Iran's Supreme National Security Council, to Lebanon in August highlighted the shift in the balance of power, and Prime Minister Nawaf Salam said they would not allow Iranians to interfere in their affairs.