Lebanon: Hezbollah rebuilds military capacity with new Iranian cash

Hezbollah has spent the past three months preparing for a potential return to war with Israel, according to Lebanese security personnel. The group is using a lull in fighting to replace lost equipment and fix internal command systems after two major conflicts since 2024.

Two Lebanese security sources told Reuters that the group received tens of millions of dollars from Iran to boost its military capabilities. This new funding comes on top of approximately $200 million that Tehran sent earlier this month. The money is helping the group buy explosives and manufacture drones capable of flying into the Israeli security zone in southern Lebanon.

The organization, founded in 1982 by Iran’s Islamic Revolutionary Guard Corps, suffered heavy losses in recent years. Thousands of fighters and many leaders were killed, and much of its arsenal was destroyed. Despite these setbacks, the group remains committed to attacking Israel. It is currently working to restore command-and-control structures that failed during key battles, according to one security source and three other officials familiar with its operations.

Hezbollah’s media office rejected the idea that its command systems had broken down. The group is also on alert for a wider escalation between the United States and Iran, which could reignite the Lebanon front. Hostilities have largely paused since June, when an interim deal included a ceasefire and Washington-mediated talks. However, Israel continues to strike Hezbollah targets in the south.

The group is still restocking its supplies. This month, Lebanese authorities seized explosives that Hezbollah acknowledged were its own. A Hezbollah official and a Lebanese security source said those items were intended for the group’s explosive drones. The group has not fully prepared its stockpiles or fighting force yet.

In previous battles, Hezbollah used small units to conserve anti-tank rockets. This tactic left some troops isolated in areas like Bint Jbeil and the Ali al-Taher ridge. There, they struggled against Israeli remotely operated systems, including armed drones and remote-controlled vehicles. The Israeli military confirmed it uses these systems to monitor the south and reduce risk to ground troops.

Washington is moving to cut off the group’s funding. A State Department spokesman said the U.S. would continue strangling Hezbollah’s finances through sanctions. A Treasury spokesperson noted that Iran is running out of money and methods to move it. Hezbollah has not stated whether it will join fresh hostilities, but its media office said it was wary of giving Israeli leaders a reason to escalate efforts against the group.