IDF: A wave of strikes in Lebanon targeted branches of the Al-Qard al-Hassan Association, a financial arm that funds Hezbollah.
Israel says Hezbollah exploits Lebanon’s economic crisis through the association, using “social services” to create dependency while diverting public funds to buy weapons and pay operatives. The group builds reserves from profits and donations, extends uncovered credit during crises, and operates entirely in cash due to U.S. sanctions imposed since 2007 and additional international measures.
The IDF says it struck Hezbollah financial reserves stored at association branches, disrupting its ability to procure weapons and pay salaries.
Hezbollah relies heavily on Iranian funding via the Quds Force. After Assad fell and the Syria route collapsed, funds shifted to direct flights from Iran and hawala networks in countries including Turkey and Lebanon.
Because the association is cut off from global and Lebanese banking systems, all transactions are cash-based, fueling Lebanon’s shadow economy and deepening the financial crisis. Despite warnings from international sources and restrictions by Lebanon’s Central Bank, including threats to freeze accounts, the association continues operating.
Following Operation Northern Arrows, Israel assesses Hezbollah economic infrastructure was severely weakened, contributing to early signs of Lebanese state recovery, including the appointment of a new Central Bank governor after 18 months of vacancy. Israel argues that as Hezbollah financial channels weaken, state institutions strengthen.
