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Israel Threatens ‘Imminent Battle’ in Lebanon as Hezbollah Refuses to Change Rules of Engagement

08 September 2024, Lebanon, Khiam: Lebanese residents of the southern border town of Khiam pack their belonging in a truck as they flee from the town that has been a target of daily Israeli shelling and air raids. (dpa)
08 September 2024, Lebanon, Khiam: Lebanese residents of the southern border town of Khiam pack their belonging in a truck as they flee from the town that has been a target of daily Israeli shelling and air raids. (dpa)
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Israel Threatens ‘Imminent Battle’ in Lebanon as Hezbollah Refuses to Change Rules of Engagement

08 September 2024, Lebanon, Khiam: Lebanese residents of the southern border town of Khiam pack their belonging in a truck as they flee from the town that has been a target of daily Israeli shelling and air raids. (dpa)
08 September 2024, Lebanon, Khiam: Lebanese residents of the southern border town of Khiam pack their belonging in a truck as they flee from the town that has been a target of daily Israeli shelling and air raids. (dpa)

Israeli Prime Minister Benjamin Netanyahu urged his government on Sunday to prepare for “changing the situation” on the northern front with Lebanon given the ongoing clashes and mounting tensions.

Speaking at a weekly cabinet meeting, he said the situation in the north cannot go on, calling on the army and all security agencies to prepare for change on the front.

The government is committed to returning all residents of the north safely to their homes, he added, while describing Hezbollah in Lebanon as Iran’s “strongest” arm.

Meanwhile, Israeli security sources told local media that the battle with Lebanon is “imminent”, but the timing for it hasn’t been set yet.

Israel is confronted with two scenarios: either reach an agreement that ends the war on Gaza, or the negotiations collapse, and it would have to deal with a broad war against Hezbollah, they added.

Israel’s Channel 12 reported that the government has put on hold escalating the fight against Iran-backed Hezbollah.

A security official said an agreement that ends the war on Gaza gives Israel the opportunity to choose the best timing to launch attacks against Hezbollah targets in Lebanon in the future, which will take place after the army completes its preparations to launch a broad war on Lebanon.

The army is in the final phase of its preparations for the potential battle, he revealed.

Expanding the war may include a land incursion into Lebanon, destroying Hezbollah’s capabilities deep in Lebanese territories and forcing its fighters away from the border with Israel, he went on to say.

Women visit the graves of their beloved ones, Hezbollah fighters killed in action, during the memorial ceremony to mark the 40th day since the death of Hezbollah senior commander Fuad Shukr, in Beirut, Lebanon, 7 September 2024. (EPA)

In Lebanon, Hezbollah vowed to continue its battle in support of Hamas in Gaza.

“Israel won’t be able to return its settlers back to their homes no matter how loud they cry. The only way they can return is by ending the war on Gaza,” declared Deputy Chief of Hezbollah’s Executive Council Sheikh Ali Daamoush.

Speaking at a funeral in Beirut’s southern suburbs of Dahieh, he stressed that Hezbollah “will never agree to a change in the rules of engagement and a change in the current equations.”

“The more the enemy intensifies its attacks, the more the resistance will increase its deterrence and expand its operations,” he stated.

Moreover, he dismissed the latest Israeli threats to wage a wide-scale war on Lebanon, saying: “This won't change our position ... or force us to quit the battlefield. Escalation won’t be met with escalation. We do not fear threats or intimidation.”

On the ground, Hezbollah retaliated on Sunday to Israel’s killing of three civil defense members in a strike on their fire truck a day earlier.

The party launched drones and rockets at the Upper and Western Galilee.

The Israeli army announced on Sunday that it launched a series of air raids against Hezbollah targets in southern Lebanon, adding that it also intercepted several projectiles fired from Lebanon overnight.

The military said it struck Hezbollah military facilities in Aitaroun, Maroun al-Ras and Yaroun in the South.

Hezbollah said it fired rockets at Israel’s Kiryat Shmona in response to the killing of the civil defense members.

Smoke rises in the southern Lebanese Marjeyoun plain after being hit by Israeli shelling on September 7, 2024, amid the ongoing cross-border clashes between Israel and Hezbollah. (AFP)

Three Lebanese paramedics were killed and two others wounded, one critically, in an Israeli attack while they were extinguishing fires in the southern town of Faroun, Lebanon's health ministry said on Saturday.

“Israeli forces targeted a team from the Lebanese Civil Defense as they responded to fires sparked by recent Israeli airstrikes,” a ministry statement said.

The Amal movement, a Hezbollah ally, said two of the paramedics were among its members.

“They were martyred while performing their humanitarian and national duties in defending Lebanon and the South,” it said.

Caretaker Prime Minister Najib Mikati condemned the attack as a violation of international law and announced an emergency meeting on Monday with Western ambassadors and international organizations to address the ongoing hostilities.

“To date, because of Israel's aggression, 25 paramedics from various ambulance teams have been killed, along with two health workers, and 94 paramedics and health workers have been injured,” the health ministry statement added.

The health ministry also condemned the attack as a “blatant strike” on an official Lebanese state apparatus, marking the second such attack on an emergency team in less than 12 hours.

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Arab World

Ongoing Strikes in Iraq Expose Political, Security Divisions

Mourners attend the funeral of members of Iraq's PMF, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
Mourners attend the funeral of members of Iraq's PMF, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
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Ongoing Strikes in Iraq Expose Political, Security Divisions

Mourners attend the funeral of members of Iraq's PMF, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer
Mourners attend the funeral of members of Iraq's PMF, who were killed in an airstrike in the town of al‑Qaim near the Syrian border, amid heightened regional tensions due to the US-Israel conflict with Iran, in Baghdad, Iraq, March 12, 2026. REUTERS/Stringer

Strikes targeting armed groups in Iraq are continuing amid the US-Israel war on Iran, piling pressure on decision-makers in Baghdad to maintain a unified stance even as factions declare their participation in the fighting alongside Tehran.

Over the past two weeks, the Iraqi government has repeatedly called for “distinguishing targets” and avoiding “mixing up the cards,” a reference to the need not to target Iraqi state institutions or official forces. The stance clashes with announcements by prominent armed factions declaring their involvement in military operations supporting Iran.

Those factions include Kataib Hezbollah, Harakat al-Nujaba and Ansar Allah al-Awfiya. In statements, they said “collaborators” were providing coordinates to what they described as the “enemy.”

Akram al-Kaabi, leader of Harakat al-Nujaba, said in a statement that recent strikes resulted from information provided by “informants,” without identifying them.

A leader in one of the factions fighting alongside Iran, however, claimed the person in question could be linked to a security agency.

Popular Mobilization sites

According to faction statements, some recent strikes targeted sites linked to the Popular Mobilization Forces (PMF), a security institution that includes several brigades affiliated with armed factions.

Observers say strikes on PMF-linked sites, alongside locations belonging to other factions, have created confusion in the political discourse over the nature of the targets and whether the strikes are aimed at specific factions or at an official security structure.

The Iraqi presidency and the prime minister’s office issued statements in recent days stressing the need to avoid dragging Iraq into the regional conflict, while reaffirming their rejection of using Iraqi territory as an arena for settling scores.

Political divisions

At the same time, divisions are widening among the armed factions themselves and between some factions and the government. Analysts say the rifts appear on two levels: military, over the extent of involvement in the war, and political, over the future of power in Baghdad.

Some factions have announced direct participation in military operations. Others have limited themselves to statements of support for Iran, while a third group has remained silent, awaiting developments in the confrontation.

The divisions are also visible within the Coordination Framework alliance, which includes the main Shiite political forces, particularly over the selection of the next prime minister.

Government formation

Iraqi politicians say the regional military escalation is further complicating an already deadlocked political scene, with parties still unable to agree on a new prime minister.

Former Prime Minister Nouri al-Maliki is the declared candidate of the Coordination Framework alliance. But sources say international objections, including from the United States, are hindering his nomination to form a government.

According to those sources, Maliki has stipulated that if he withdraws from the race, neither the current Prime Minister, Mohammed Shia al-Sudani, nor the former Prime Minister, Haider al-Abadi, should be tasked with forming the government.

Analysts say rising regional tensions could push some political forces to exploit the war to strengthen their negotiating positions inside Iraq, particularly as pressure on Tehran grows, and prospects for regional understandings that previously influenced power arrangements in Baghdad diminish.

Additional complications

The picture is further complicated by ongoing disagreements among Kurdish parties over who should be named the presidential candidate. Under the constitution, the president appoints the nominee of the largest parliamentary bloc to form the government.

Observers say delays by Kurdish parties in agreeing on a presidential candidate are effectively obstructing the formation of a new government, while some political forces are using the delay to justify postponing a decision on the premiership.

Tensions have also risen after reports that areas in the Kurdistan region were struck in connection with the escalation between armed factions and their opponents, potentially adding a new dimension to political disputes between Baghdad and Erbil.

Arab World

Hezbollah-linked Financial Institution Faces Systematic Israeli Military Campaign

Part of the building struck by an Israeli air strike in the Bashoura area, where the Israeli military said Hezbollah stores money beneath it (Asharq Al-Awsat)
Part of the building struck by an Israeli air strike in the Bashoura area, where the Israeli military said Hezbollah stores money beneath it (Asharq Al-Awsat)
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Hezbollah-linked Financial Institution Faces Systematic Israeli Military Campaign

Part of the building struck by an Israeli air strike in the Bashoura area, where the Israeli military said Hezbollah stores money beneath it (Asharq Al-Awsat)
Part of the building struck by an Israeli air strike in the Bashoura area, where the Israeli military said Hezbollah stores money beneath it (Asharq Al-Awsat)

The Al-Qard Al-Hasan Association, a financial institution linked to Hezbollah, is facing a systematic military campaign as part of what appears to be a renewed Israeli strategy aimed at undermining the group’s economic infrastructure and cutting off its funding sources.

After the association’s branches were targeted during the 2024 war between Israel and Hezbollah, the institution has once again become a primary target in the current conflict.

The renewed campaign appears aimed at eliminating its role entirely, after it resumed operations following the previous war.

Ongoing campaign

In addition to years of political pressure and sanctions, the Israeli army targeted several of the association’s branches in Beirut, the Bekaa Valley and southern Lebanon during the 2024 war, making the institution part of a broader multi-level confrontation involving military strikes, financial sanctions and political pressure.

During the 66-day war, most of the association’s branches were hit by Israeli air strikes. Despite this, the institution was able to resume operations after the ceasefire and continued to provide financial services.

Hezbollah also used the association to distribute aid and compensation to people affected by the war through checks issued in the group’s name. The group attempted to circumvent sanctions through an entity it called the Joud Foundation, intended to serve similar financial purposes.

But in February, the United States imposed sanctions on it, saying it was being used to ensure the flow of funds from Iran to Hezbollah.

Attempt to eliminate it completely

In the current war, Israel has intensified its strikes against the association in a systematic manner. The Israeli military has clearly stated that all Al-Qard Al-Hasan branches are considered targets, a pledge it has carried out through strikes on most buildings housing its offices.

This has become a source of concern for residents, particularly because many of the association’s offices are located in residential buildings. Residents have therefore demanded that the offices be closed.

Lebanese security authorities have attempted to limit losses resulting from attacks on the association’s branches.

In this context, a decision was taken to close its branch in Sidon, southern Lebanon, and remove its sign on Thursday, following demands from business owners and institutions on the street and in neighboring buildings.

Authorities also evacuated the association’s branch building in Beirut’s Noueiri district on Friday following a decision by the interior minister.

It is also clear that the Israeli army is no longer only pursuing the association’s branches but also money storage facilities. Israeli military spokesman Avichay Adraee said on Thursday, after a strike on a building in the Bashoura area near central Beirut, that Hezbollah had hidden millions of dollars beneath the civilian building to fund its “terrorist activities.”

He added that the site was guarded by armed men and that access to the storage facility was through the building’s parking lot.

While Israeli strikes in 2024 failed to destroy what is often described as “Hezbollah’s central bank,” Israel, which views the association as a central element in financing Hezbollah’s activities and harmful to the Lebanese economy in the service of Iranian interests, now appears intent on weakening it fundamentally.

The goal appears to be depriving the group of one of its most important sources of economic and social influence in Lebanon.

Drying up resources a long and complex process

However, financial and economic affairs researcher Professor Maroun Khater said it is unlikely that Al-Qard Al-Hasan could be completely eliminated.

“Experience shows that such networks are often capable of adapting and finding alternative channels, which makes the process of cutting off resources long and complex,” Khater told Asharq Al-Awsat.

“For this reason, it is difficult to conclude that the blows suffered by Al-Qard Al-Hasan have led to the complete collapse of Hezbollah’s financial system, due both to the nature of the association itself and the diversity of funding sources that international reports say the group relies on.”

Khater added that despite the pressure, the association relies on a broad social network of depositors and borrowers who have used its services as an alternative to the traditional banking system, even before Lebanon’s banking sector effectively collapsed in 2019.

“This social base, along with political and security protection, has given it a certain capacity to endure, albeit within a limited scope, and has so far allowed it room to reorganize its activities whenever it is hit,” he said.

Fate of funds unclear

Khater also stressed that it would be simplistic to view the association as Hezbollah’s only source of funding.

Research centers and international institutions estimate that the group’s financing relies on a mix of sources, including foreign support, local economic networks, and donations, as well as various financial and commercial activities.

Some resources are also believed to move through individuals or private institutions that may remain outside full regulatory oversight, whether inside Lebanon or abroad.

For this reason, Khater said, it remains difficult to determine the true scale of the wealth accumulated by Hezbollah over past decades or to know what has happened to portions of its funds, gold reserves or other assets.

A parallel banking system under pressure

The Al-Qard Al-Hasan Association was founded in 1983 and operates more than 30 branches across Lebanon, including in Beirut, southern Lebanon and the Bekaa Valley. A broad segment of the public relies on it to obtain small loans or cash liquidity in exchange for gold or other assets pledged as collateral.

As Lebanon’s financial crisis worsened after 2019, the association’s role expanded, functioning in many ways as Hezbollah’s “parallel banking system.”

While banks suspended lending, Al-Qard Al-Hasan said it had issued 212,000 loans totaling $553 million in 2020 and 2021.

The US Treasury froze the association’s assets in 2007 and imposed additional sanctions in 2021 on several individuals linked to it, accusing the organization of collecting foreign currency to help Hezbollah build a support base.

The Treasury says that although the association claims to serve the Lebanese public, it actually transfers funds illegally through fictitious accounts and intermediaries, exposing Lebanese financial institutions to potential sanctions.

Lebanese authorities have also tightened restrictions. In 2025, Lebanon’s central bank instructed banks and financial institutions not to deal with unlicensed entities subject to sanctions, including Al-Qard Al-Hasan.

Arab World

Iraq PM Vows to Prevent Attacks After French Soldier Killed

Iraqi Prime Minister Mohammed Shia al-Sudani attends an event in Baghdad, Iraq, Jan. 9, 2024. (Reuters)
Iraqi Prime Minister Mohammed Shia al-Sudani attends an event in Baghdad, Iraq, Jan. 9, 2024. (Reuters)
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Iraq PM Vows to Prevent Attacks After French Soldier Killed

Iraqi Prime Minister Mohammed Shia al-Sudani attends an event in Baghdad, Iraq, Jan. 9, 2024. (Reuters)
Iraqi Prime Minister Mohammed Shia al-Sudani attends an event in Baghdad, Iraq, Jan. 9, 2024. (Reuters)

Iraq's Prime Minister Mohammed Shia al-Sudani vowed on Friday to prevent attacks after the killing of a French soldier in an attack in the autonomous Kurdistan region.

Sudani expressed his "solidarity" with France in a phone call with French President Emmanuel Macron.

He said that "the necessary measures will be taken to prevent the recurrence of such incidents", and an investigation will be conducted into the attack.

The president of Iraq's Kurdistan region Nechirvan Barzani, in a call with Macron, also expressed his condolences and called for the Iraqi government to "set limits on outlaw groups".