U.S. Aims to Cut Iran’s Funding to Hezbollah Amid ‘Critical Moment’ in Lebanon, Says Treasury Official

U.S. Sees Opportunity to Curb Iran’s Funding to Hezbollah and Push for Disarmament

The U.S. Treasury’s top sanctions official said Washington wants to seize the “window of opportunity” to curb Iranian funding to Hezbollah and push the Lebanese militant group toward disarmament.

Under Secretary for Terrorism and Financial Intelligence John Hurley told Reuters in an interview late Friday that despite Western sanctions severely damaging its economy, Iran has managed to funnel nearly $1 billion to Hezbollah this year.

The United States has maintained its “maximum pressure” campaign against Tehran to limit both its uranium enrichment and its regional influence — including in Lebanon, where Hezbollah’s military capabilities were severely damaged during the 2023–24 conflict with Israel.

Last weekend, Washington sanctioned two individuals accused of facilitating financial transactions for Hezbollah, which is designated as a terrorist organization by the U.S., several Western governments, and Gulf states.

“Lebanon has reached a critical juncture,” Hurley said. “If we can disarm Hezbollah, the Lebanese people can reclaim their country.”

He added, “The key is cutting off Iran’s influence and control — and that starts with stopping every dollar flowing to Hezbollah.”

Hurley spoke to Reuters in Istanbul during a regional trip to Turkey, Lebanon, the UAE, and Israel, aimed at increasing pressure on Tehran.

U.N. Sanctions Deepen Iran’s Economic Strain

Tehran has been seeking to strengthen ties with China, Russia, and the UAE since negotiations over its disputed nuclear and missile programs collapsed in September, prompting the reimposition of United Nations sanctions.

Western powers accuse Iran of secretly pursuing nuclear weapons capability — a charge Tehran denies, insisting its nuclear program is for civilian energy purposes. The Iranian economy remains mired in hyperinflation and deep recession fears.

Meanwhile, Israel — a close U.S. ally — claims Hezbollah is attempting to rebuild its arsenal despite a year-old ceasefire. On Thursday, Israeli warplanes carried out heavy strikes in southern Lebanon in response to alleged Hezbollah provocations.

Lebanon’s government has pledged to disarm all non-state armed groups, including Hezbollah. Formed in 1982 by Iran’s Revolutionary Guards, the group has been the spearhead of Tehran’s “Axis of Resistance” and fired on Israel in 2023 in solidarity with Palestinians during the Gaza war.

Although Hezbollah — also a major political force in Beirut — has not stopped Lebanese troops from seizing some of its southern stockpiles, it has firmly rejected total disarmament.

Hurley: Iran’s Economy Is Faltering but Still Funds Militants

On his first Middle East visit since President Donald Trump took office, Hurley met with government, banking, and private-sector leaders to rally support for stronger enforcement of sanctions.

“Despite the damage to its economy, Iran continues to pour vast sums into terrorist organizations,” Hurley said.

He argued that drying up these financial pipelines would not only weaken Hezbollah but also give Lebanon a chance to “reclaim stability and sovereignty” after years of Iranian interference.