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The Lebanese Hezbollah is facing a significant financial crisis due to Israeli airstrikes that have disrupted three of its primary funding sources.

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Experts believe that Hezbollah’s military capabilities have been affected by the Israeli attacks targeting its leadership and weapon storage facilities, resulting in a noticeable decrease in rocket attacks. However, the party is under considerable financial pressure.

A report published by “Voice of America” states that Hezbollah’s financial shortfall stems from Israeli airstrikes on its main source of funds, the “Al-Qard Al-Hassan” foundation, a quasi-banking institution operated by Hezbollah without an official banking license. Researchers point out that other cash sources for the group come from bankrupt licensed commercial banks in Lebanon and planes arriving at Beirut airport carrying funds, particularly from Iran.

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Money stores:

A report from Lebanon’s MTV channel, dated September 30, indicated that Israeli airstrikes targeted Hezbollah‘s “cash storage centers,” including a significant portion of the Al-Qard Al-Hassan vaults, leaving Hezbollah in what the report describes as a “financial crisis.”

Hilal Khashan, a professor of political science at the American University of Beirut, stated that Israel “destroyed” most branches of “Al-Qard Al-Hassan” in the airstrikes, resulting in Hezbollah facing a severe financial problem, being unable to pay the salaries of its regular members who have fled their homes and need to feed their families.

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Banking system:

David Asher, a former official at the U.S. Departments of Defense and State, who targeted Hezbollah‘s global drug trafficking and money laundering networks, said in an interview that the group faces a “deep problem” as it is also losing access to the Lebanese banking system.

Asher, now a senior fellow at the Hudson Institute in Washington, added: “I’ve heard from Lebanese bankers, including Hezbollah‘s financiers, that the wealthiest Lebanese bankers, who can afford to travel, have fled to Europe and the Gulf, fearing they will be targeted next by Israel for helping Hezbollah.”

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Asher pointed out that these Lebanese bankers, mostly billionaires, see the winds turning against Hezbollah and will not allow it to withdraw millions of dollars from their banks, which still have money despite being technically bankrupt. They know that if they do, Israel is likely to target them as well.

Iranian funds:

According to Asher and Khashan, another source of funding for Hezbollah that has dried up is the cash coming in on planes to Beirut airport, particularly from Iran, Hezbollah’s primary sponsor.

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Israeli military spokesperson Daniel Hagari told reporters on September 27 that Israeli warplanes have begun patrolling the airspace over Beirut airport and will not allow hostile flights carrying weapons to land at a civilian facility.

Hagari did not mention the transfer of cash on what Israel considers hostile flights.

The following day, Lebanon’s Ministry of Transportation informed Lebanese and international media that it had ordered an Iranian plane bound for Beirut to stay out of Lebanese airspace due to an Israeli warning to Beirut air traffic control that Israel would use force if the plane landed.

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Khashan stressed that Hezbollah‘s lack of money is not expected to prevent thousands of its members from continuing to fight Israeli forces anytime soon.

“Continuing to fight depends more on the availability of food and ammunition. When the motivation for fighting is religious zeal, more fundamental issues than money come into play,” he concluded.