Hezbollah receives $200 million from Iran to aid Lebanese displaced by war with Israel

Hezbollah has received $200 million from Iran to assist the displaced Lebanese following the recent war with Israel, according to two sources with direct knowledge of the transfer. This marks the first substantial aid provided by Hezbollah to its supporters who suffered the most during the conflict. The funding was delivered last month, even though the United States has imposed severe economic sanctions on Iran, making it challenging to funnel funds to Hezbollah's Lebanese ally.

Intermediaries handling the transaction charged a 20% fee, which is four times the usual fee, indicating the heightened risk associated with dealing with the militant group. A spokesperson for Hezbollah confirmed that the funds have been secured and a plan for distribution would be announced soon, without disclosing the source of the money.

The foreign ministry of Iran, the permanent mission of Iran in Geneva, the US State Department, and the Lebanese government have not yet responded to inquiries for comment. Israel's bombardment and invasion of Lebanon resulted in the displacement of hundreds of thousands of Hezbollah's Shi'ite Muslim constituents following the group's involvement in the regional conflict on March 2.

Despite receiving no aid thus far from Hezbollah, which has suffered heavy losses in two wars since 2024 and is labeled as a terrorist organization by Washington, the displaced families numbered around 50,000, according to one of the sources. The funds will be utilized to pay an initial $3,000 per family, with priority given to those whose villages have been destroyed or are inaccessible due to Israeli occupation.

Iran has consistently provided financial support to Hezbollah throughout periods of severe US sanctions, transferring $1 billion to the group within the first ten months of 2025, as per the US Treasury Department. Iran has never admitted to financing Hezbollah. Iran's practice of funding regional proxies has sparked domestic protests against the clerical rulers, potentially becoming a sensitive issue amidst worsening conditions in Iran.

Iran had pledged additional funding to Hezbollah following Tehran's signing of an interim deal with Washington in June, which facilitated Iran's oil sales - but the agreement fell apart in July. Washington has subsequently increased economic pressure on Iran by tightening sanctions and imposing a naval blockade to impede Iranian oil exports.

Naim Qassem, the leader of Hezbollah, stated in a speech last month that the group would soon contribute to a housing project targeting thousands of people displaced by the war, using "available resources and donations". Hezbollah's capacity to fund local services and provide post-conflict aid has bolstered its support in the past.

The total reconstruction costs from the two wars since 2024 could surpass $27 billion, according to Lebanese Prime Minister Nawaf Salam. Israel has destroyed villages across a swath of territory it has seized in the south, aiming to shield northern Israel from Hezbollah's attacks. Since March 2, over 4,300 people have been killed in Israeli attacks in Lebanon, although the toll does not specify the number of combatants among the fatalities.

Hezbollah has not disclosed figures on its war dead. On May 4, Reuters reported that several thousand Hezbollah fighters had been killed in the war.