Exploding Device Attacks Dealt Major but Not Crippling Blow to Hezbollah, Analysts Say

 Hezbollah members carry the coffins of two of their comrades during a funeral procession in the southern suburbs of Beirut, Thursday, Sept. 19, 2024. (AP)
Hezbollah members carry the coffins of two of their comrades during a funeral procession in the southern suburbs of Beirut, Thursday, Sept. 19, 2024. (AP)
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Exploding Device Attacks Dealt Major but Not Crippling Blow to Hezbollah, Analysts Say

 Hezbollah members carry the coffins of two of their comrades during a funeral procession in the southern suburbs of Beirut, Thursday, Sept. 19, 2024. (AP)
Hezbollah members carry the coffins of two of their comrades during a funeral procession in the southern suburbs of Beirut, Thursday, Sept. 19, 2024. (AP)

The waves of remotely triggered explosions that hit pagers and walkie-talkies carried by Hezbollah members in grocery stores, on streets and at a funeral procession this week made for an eerie and shocking spectacle.

Analysts said Hezbollah will be able to regroup militarily and find communications workarounds after the attack, but the psychological effects will likely run deep.

The explosions — widely blamed on Israel, which has neither confirmed nor denied involvement — killed at least 37 people, including two children, wounded more than 3,000 and deeply unsettled even Lebanese who have no Hezbollah affiliation.

The detonating devices hit workers in Hezbollah’s civilian institutions, including its health care and media operations, as well as fighters, dealing a blow to the armed group's operations beyond the battlefield. It is not clear how many civilians with no link to Hezbollah were injured.

The attacks also exposed the weaknesses in the low-tech communications system the group had turned to in an attempt to avoid Israeli surveillance of cellphones.

Retired Lebanese army Gen. Elias Hanna described the attacks as the “Pearl Harbor or 9/11 of Hezbollah.”

Mohanad Hage Ali, a senior fellow at the Carnegie Middle East Center think tank who researches Hezbollah, said that because the blasts hit people across the group’s institutions, the attack was “like a sword in the guts of the organization.” Hundreds of people were severely wounded, including many who lost eyes or hands.

“It will require time to heal and replace those who were targeted,” he said.

But Hage Ali and other analysts agreed that the loss of manpower is not a crippling blow. Hezbollah leader Hassan Nasrallah has said the group’s fighting force numbers more than 100,000, meaning that the attack — as dramatic as it was — would have put only a small percentage of its militants out of commission even if all those wounded and killed were fighters.

Qassim Qassir, a Lebanese analyst close to Hezbollah, said the detonating devices actually struck mostly civilian workers within the group and not military or security officials, which has allowed it to contain the impacts on its war effort.

Hezbollah has exchanged fire with Israel’s military almost daily since Oct. 8, the day after a deadly Hamas-led assault in southern Israel triggered a massive Israeli counteroffensive and the ongoing war in Gaza.

Since then, hundreds have been killed in strikes in Lebanon and dozens in Israel, while tens of thousands on each side of the border have been displaced. Hezbollah said its strikes are in support of its ally, Hamas, and that it will halt its attacks if a ceasefire is implemented in Gaza.

Speaking Thursday, Nasrallah acknowledged that the pager and walkie-talkie attacks represented a “severe blow,” but he vowed that the group would emerge stronger than before.

Hezbollah continued to launch rockets over the border Wednesday and Thursday after the pager and walkie-talkie attacks, including one that killed two Israeli soldiers.

The impacts on Hezbollah’s communications network are likely to be more disruptive than the human loss.

“Telecommunications is the nerve of military operations and communications,” said retired Lebanese army Gen. Naji Malaeb, an expert on security affairs. A delay in communication could spell disaster, he said.

In February, Nasrallah warned members not to carry cellphones, which he said could be used to track them and monitor their communications.

But long before that, Hezbollah relied on pagers and its own private fiber-optic landline network to avoid the monitoring of its communications.

The pagers that detonated Tuesday were a new model the group recently began using. It appears that small quantities of explosives had been implanted in the devices at some stage in the manufacturing or shipping process and then remotely detonated.

Hanna said the group might rely more heavily on its landline network — which Israel has attempted to tap into on multiple occasions — going forward, or on even lower-tech solutions such as hand-delivered letters.

“Maybe you have to go back to human communication, the postman,” he said. “This is what is really helping (Hamas leader) Yahya Sinwar not to be targeted” in his hiding spot in Gaza.

Orna Mizrahi, a senior researcher at the Tel Aviv-based think tank Institute for National Security Studies and former intelligence analyst for the Israeli military and prime minister’s office, said losing the ability to communicate through pagers is a “dramatic blow,” but the group has other communication methods and will rebuild their communication network.

The bigger damage to Hezbollah was psychological, she said.

“It’s the humiliation of having such an operation, it shows how much the organization is exposed to the Israeli intelligence,” she said.

Amal Saad, a lecturer in politics and international relations at Cardiff University in Wales who researches Hezbollah, said much of the attack's impact was the “demoralization and the fear” it sowed.

“It’s not just a security breach against the military," she said. "Hezbollah’s entire society is going to be extremely concerned because everything is liable now to being hacked and rigged.”

The group will “be rethinking many things now, not just the pagers," Saad said.



Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
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Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH

Iran's Revolutionary Guards have tightened their grip on the country's oil industry and control up to half the exports that generate most of Tehran's revenue and fund its proxies across the Middle East, according to Western officials, security sources and Iranian insiders.

All aspects of the oil business have come under the growing influence of the Guards, from the shadow fleet of tankers that secretively ship sanctioned crude, to logistics and the front companies selling the oil, mostly to China, according to more than a dozen people interviewed by Reuters.
The extent of the Iranian Revolutionary Guard Corps' (IRGC) control over oil exports has not previously been reported.

Despite tough Western sanctions designed to choke Iran's energy industry, reimposed by former US President Donald Trump in 2018, Iran generates more than $50 billion a year in oil revenue, by far its largest source of foreign currency and its principal connection to the global economy.

Six specialists - Western officials and security experts as well as Iranian and trading sources - said the Guards control up to 50% of Iran's oil exports, a sharp increase from about 20% three years ago. The sources declined to be identified due to the sensitivity of the matter.

Three of the estimates were based on intelligence documents about Iranian shipping while others derived their figures from monitoring shipping activity by tankers and companies linked to the IRGC. Reuters was unable to determine the exact extent of the IRGC's control.

The IRGC's growing domination of the oil industry adds to its influence in all areas of Iran's economy and also makes it harder for Western sanctions to hit home - given the Guards are already designated as a terrorist organization by Washington.

Trump's return to the White House in January, however, could mean tougher enforcement of sanctions on Iran's oil industry. The country's oil minister said Tehran is putting measures in place to deal with any restrictions, without giving details.

As part of their expansion in the industry, the Guards have muscled in on the territory of state institutions such as the National Iranian Oil Company (NIOC) and its NICO oil trading subsidiary, according to four of the sources.

When sanctions hit Iran's oil exports years ago, the people running NIOC and the wider industry were specialized in oil rather than how to evade sanctions, added Richard Nephew, a former deputy special envoy for Iran at the US State Department.

"The IRGC guys were much, much better at smuggling, just terrible at oil field management, so they began to get a larger control of oil exports," said Nephew, who is now a researcher at Columbia University.
The IRGC, NIOC, NICO and Iran's foreign ministry did not respond to requests for comment.
RISK APPETITE
The IRGC is a powerful political, military and economic force with close ties to Supreme Leader Ali Khamenei.
The Guards exert influence in the Middle East through their overseas operations arm, the Quds Force, by providing money, weapons, technology and training to allies Hezbollah in Lebanon, Hamas in Gaza, Yemen's Houthis and militias in Iraq.
While Israel has killed a number of senior IRGC commanders over the past year, the oil specialists in its ranks have been able to continue their operations, two Western and two Iranian sources said.
The Iranian government began allotting oil, instead of cash, to the IRGC and Quds Force around 2013, according to Nephew.
The government was under budgetary pressure then because it was struggling to export oil due to Western sanctions imposed over Iran's nuclear program.
The IRGC proved adept at finding ways to sell oil even under sanctions pressure, said Nephew, who was actively involved in tracking Iranian oil activities then.
Iranian oil revenues hit $53 billion in 2023 compared with $54 billion in 2022, $37 billion in 2021 and $16 billion in 2020, according to estimates from the US government's Energy Information Administration.
This year, Tehran's oil output has topped 3.3 million barrels per day, the highest since 2018, according to OPEC figures, despite the Western sanctions.
China is Iran's biggest buyer of oil, with most going to independent refineries, and the IRGC has created front companies to facilitate trade with buyers there, all the sources said.
Oil export revenues are split roughly evenly between the IRGC and NICO, said one source involved in Iranian oil sales to China. The IRGC sells oil at a $1-$2 barrel discount to prices offered by NICO because buyers take a bigger risk buying from the Guards, the person said.
"It depends on a buyer's risk appetite, the higher ones will go for the IRGC, which the US designates as a terrorist group."
Two Western sources estimated that the IRGC offered an even bigger discount, saying it was $5 per barrel on average but could be as much as $8.
The oil is allocated directly by the government to the IRGC and Quds Force. It's then up to them to market and ship the oil - and work out a mechanism for disbursing the revenue, according to the sources and intelligence documents seen by Reuters.
NIOC gets a separate allocation.
CHINESE FRONT
One of the front companies used is China-based Haokun. Operated by former Chinese military officials, it remains an active conduit for IRGC oil sales into China, despite Washington hitting it with sanctions in 2022, two of the sources said.
The US Treasury said China Haokun Energy had bought millions of barrels of oil from the IRGC-Quds Force and was sanctioned for having "materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF".
In one oil transaction dated March 16, 2021 involving Haokun and parties including Turkish company Baslam Nakliyat - which is under US sanctions for its trading links to the IRGC - a payment was processed via US bank JP Morgan and Turkish lender Vakif Katilim, according to the intelligence documents.
The transaction took place before the companies were sanctioned. Reuters has no indication JP Morgan or Vakif Katilim were aware of the Iranian connection - highlighting the risks of companies getting inadvertently caught up in the shadow trade.
JP Morgan declined to comment. Vakif Katilim said in a statement: "Our bank performs its activities within the framework of national and international banking rules."
Haokun declined to comment. Baslam did not respond to a request for comment.
'GHOST FLEET'
Quds Force commander Qassem Soleimani, who was killed in a US strike in Baghdad in 2020, had set up a clandestine headquarters and inaugurated that year for the unit's oil smuggling activities, initially staffed by former oil minister Rostam Ghasemi, according to the intelligence documents.
Reuters could not determine where all the oil money funneled through the IRGC goes. The IRGC headquarters and day-to-day operations has an annual budget of around $1 billion, according to assessments from two security sources tracking IRGC activities.
They estimated that the IRGC budget for Hezbollah was another $700 million a year.
"Exact figures remain undisclosed, as Hezbollah conceals the funds it receives. However, estimates are that its annual budget is approximately $700 million to $1 billion. Around 70%-80% of this funding comes directly from Iran," Shlomit Wagman, former director general of Israel’s Money Laundering and Terrorism Financing Prohibition Authority, said separately.
Hezbollah did not respond to a request for comment.
The former Secretary General of Hezbollah, Hassan Nasrallah, who was killed in an Israeli airstrike, said Iran provided the group's budget, including for salaries and weapons.
Iran's main tanker operator NITC, which previously played a key role in exports, also now provides services to the IRGC.
It executes ship-to-ship transfers of Iranian oil onto vessels operated by the IRGC to ship crude into China, according to sources and ship-tracking data. Such transfers are common practice to help disguise the origin of the oil tankers carry.
NITC did not respond to a request for comment.
In August, Israel's National Bureau for Counter Terror Financing, part of the country's defense ministry, imposed sanctions on 18 tankers it said were involved in transporting oil belonging to the Quds Force.
In October, the US Treasury slapped sanctions on 17 separate tankers it said formed part of Iran's "ghost fleet", outside of NITC vessels. It followed up with sanctions on a further 18 tankers on Dec. 3.