Hezbollah Spends Tens of Millions Rebuilding After Iran Funding

Hezbollah has spent three months preparing for a possible resumption of war with Israel, according to Lebanese security personnel briefed on the group's activities. The effort to rearm follows an infusion of cash from Iran, which the group has used to bolster its military capabilities. Two Lebanese security sources told Reuters that the organization received tens of millions of dollars from Tehran for this purpose.

The funding comes in addition to approximately $200 million that Hezbollah previously received from Iran, a sum reported by Reuters earlier this month. The group, founded by Iran's Islamic Revolutionary Guard Corps in 1982, has faced severe setbacks in two wars with Israel since 2024. Thousands of fighters and many leaders were killed, and much of its arsenal was destroyed during those conflicts.

The group is currently focused on procuring explosives and producing drones capable of flying into the security zone occupied by the Israel Defense Forces in southern Lebanon. One source close to Hezbollah and another security official stated that the group has been working to restore command-and-control structures that broke down during key battles. These breakdowns occurred in flashpoint areas including the town of Bint Jbeil and the strategic Ali al-Taher ridge.

Hezbollah's media office rejected the suggestion that its command-and-control systems had suffered such severe damage. The group has used the lull in hostilities since June to rebuild. It is still restocking, acknowledging this month that explosives seized by Lebanese authorities belonged to it and were intended for use against Israel. A Hezbollah official and a Lebanese security source specified that these materials were for its explosive drones.

Hezbollah's tactics involved operating in small units and rationing anti-tank rockets. This approach left some units isolated on key fronts, where they struggled against Israel's remotely operated systems, including weaponized drones and armed remote-controlled vehicles. The Israeli military told Reuters it uses these systems to monitor southern Lebanon and reduce the threat exposure of its troops.

The rearming effort occurs amid continued tensions in the Middle East, a conflict ignited by the US-Israeli war with Iran that began in February. Hezbollah attacked Israel on March 2 in support of Iran, triggering an Israeli response that led to the evacuation of many residents from southern Lebanon. Hostilities largely abated over the summer as an interim Iran-US deal included a Lebanon ceasefire and Washington-mediated talks. Full-scale hostilities have not resumed despite the collapse of the US-Iranian deal, though Israel continues strikes on Hezbollah targets in the south.

A US State Department spokesman said Washington would continue to constrain Hezbollah's finances through sanctions. A US Treasury spokesperson stated that Iran is running out of money and ways to move it. The sources told Reuters that Hezbollah has not yet fully prepared its stockpiles or fighting force. The group remains on alert for a potential US-Iran escalation that could reignite the Lebanon front. Israel's military declined to comment, and Iran's permanent mission to the United Nations in Geneva did not immediately respond to questions.