U.S. Intensifies Efforts to Cut Iran’s Funding to Hezbollah Amid Lebanon Opportunity

The United States is seizing what it calls a critical “moment” in Lebanon to curb Iranian influence by cutting financial support to Hezbollah and pushing the group toward disarmament. According to John Hurley, the U.S. Treasury Department’s undersecretary for terrorism and financial intelligence, Iran has funneled nearly $1 billion to Hezbollah this year despite extensive Western sanctions aimed at crippling Tehran’s economy.

Speaking in Istanbul during a regional tour of Turkey, Lebanon, the UAE, and Israel, Hurley emphasized that Washington’s “maximum pressure” campaign on Iran is designed to limit Tehran’s uranium enrichment and regional power projection. He described Hezbollah’s weakened position following the 2023–24 conflict with Israel as a key opportunity to diminish its influence in Lebanon. “If we could get Hezbollah to disarm, the Lebanese people could get their country back,” Hurley said, stressing the need to “drive out Iranian influence” starting with financial networks that sustain the group.

The U.S. recently imposed sanctions on two individuals accused of using money exchange operations to finance Hezbollah, which is designated as a terrorist organization by the U.S., EU, and several Gulf states. Despite Iran’s economic struggles, Hurley noted that Tehran continues to channel significant funds to its regional proxies, including Hezbollah.

Since the reinstatement of U.N. sanctions in September after the collapse of nuclear talks, Iran has deepened ties with China, Russia, and regional allies to offset Western economic isolation. However, its economy now faces soaring inflation and potential recession. Meanwhile, Israel has continued airstrikes in southern Lebanon, accusing Hezbollah of rebuilding its military capabilities despite a ceasefire agreement.

Lebanon’s government has pledged to disarm all non-state militias, but Hezbollah — a dominant political and military force since its founding by Iran’s Revolutionary Guards in 1982 — has resisted full disarmament, maintaining its alignment with Tehran’s regional agenda.