Hezbollah has reportedly requested $2 billion from Iran for reconstruction efforts, double the amount Tehran had initially planned to provide, citing a shortage of funds, according to The Israeli Broadcasting Corporation.
The report noted that “despite Hezbollah continuing to purchase weapons, and despite the economic situation not affecting its ground units, salaries, personnel capabilities, recruitment, or training, the group remains dissatisfied.” Hezbollah has pressed for more external and government involvement in reconstruction of Lebanon’s south, rather than funding the effort itself, highlighting the limits of the group’s financial capacity.
Financial Obstacles
Despite ongoing support from Iran, Hezbollah has faced severe financial losses following its 2024 war with Israel. The report added, “the war with Israel resulted in significant losses and a decline in the weapons stockpile that was assembled over two decades in a short period, prompting Hezbollah to demand additional funding from Iran, as rebuilding those capabilities requires enormous financial resources.”
Following military confrontations with Israel in June 2025, Tehran itself has encountered major economic difficulties, including steep international sanctions. These economic difficulties have been compounded by domestic crises, including a severe water shortage, high inflation, and disruptions to energy exports such as halted gas supplies to Iraq. The strain on Iran’s finances has limited the amount available for reconstruction and military rebuilding in southern Lebanon.
Despite internal challenges, the report noted that Tehran has managed to continue transferring significant funds to the militant group; “Over the past five months, Iran has transferred about $1 billion to Hezbollah via smuggling routes passing through northern Iraq, Syria and Turkey, despite an unprecedented internal water crisis, frequent power outages, and severe air pollution.”
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