Exclusive – Why Did Paraguay Designate Hezbollah as Terrorist?

Hezbollah members carry flags during the funeral of a fellow fighter. (Reuters)
Hezbollah members carry flags during the funeral of a fellow fighter. (Reuters)
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Exclusive – Why Did Paraguay Designate Hezbollah as Terrorist?

Hezbollah members carry flags during the funeral of a fellow fighter. (Reuters)
Hezbollah members carry flags during the funeral of a fellow fighter. (Reuters)

Paraguay designate Hezbollah as a terrorist organization less than a month after Argentina became the first South American country to blacklist the Iran-backed group. Paraguay made its move after authorities gathered enough evidence that confirmed the armed party’s close ties with criminal organizations that are active in its shared border region with Brazil and Argentina. The area is a hub for drug smuggling, money-laundering and human-trafficking.

Hezbollah’s operations in Latin America are a cause for mounting concern in the continent, which will likely mean that more countries will follow in Paraguay and Argentina’s lead and blacklist the party.

Are these developments connected to the ongoing clash between the United States and Iran? Most definitely so.

Tehran is the vital connection for funding all of its proxy terrorist groups, starting with Hezbollah. The party’s secretary general even admitted that the members receive all of their salaries directly from Iran. The renewed sanctions on Tehran have, however, impacted the party, forcing it to set up boxes for donations in Lebanon in order to compensate from the drop in financing. This has led to insignificant results, forcing party members to consider the illicit activity in South America as a possible replacement for Iran’s funds.

The party’s actions have not evaded US attention and many officials in Washington have started to demand that Hezbollah be uprooted from South America given its close proximity to US soil.

Republican Senator Ted Cruz had in July addressed a letter to US Secretary of State Mike Pompeo to underscore Hezbollah’s growing threat in South America. "We must recommit to ensuring that Hezbollah and other Iranian proxies are denied the resources they need to escalate their campaign of global terrorism,” he said on the occasion of the 25th anniversary of Hezbollah’s bombing of the Jewish community center in Argentina. The attack left 85 people dead and 200 wounded.

Cruz’ remarks highlight the major and dangerous project Iran is pursuing through Hezbollah in spreading Shiism in South America. Instilling dogmatic beliefs will pave the way to a future generation that is hostile to the US and that will fuel a major terrorist war against it. Washington has started to realize this threat.

How has Hezbollah, as an Iranian terrorist proxy, managed to reach Latin America?

This did not take place overnight. It began at the end of the Iranian-Iraqi war when Tehran saw in the huge Arab diaspora in South America a fertile ground to recruit agents who will further its revolution and propagate its terrorism. Hezbollah managed to deepen its ties with several populist governments in South America, especially Venezuela with which Iran enjoyed good relations under the rule of late President Hugo Chavez. He believed that the best way to spite the US was to bolster ties with Iran. He therefore, greatly facilitated Hezbollah’s operations in Venezuela and from there, the rest of the continent.

Its spread in South America was made easy by weak governments and border security, as well as rampant corruption.

Matthew Levitt, director of the Stein Program on Counterterrorism and Intelligence at the Washington Institute for Near East Policy, warned of Hezbollah’s drug trade, saying it would soon be able to reap more funds from it than from any other source.

Moreover, he warned of Hezbollah sleeper cells that are waiting for the signal to strike inside the US itself.

The noose is, however, tightening around Hezbollah in Latin America. Brazil, whose President Jair Bolsonaro boasts very good relations with his American counterpart Donald Trump, may very soon designate Hezbollah as terrorist. The US Congress had recently spoken of the party’s strong support in Brazil, where some 7 million people trace their roots back to Lebanon. One million of those people are Shiites who share Hezbollah’s ideology. Most alarming of all is that the party believes that it can exploit these people to infiltrate any Brazilian government or security agency.

Brazil’s general prosecution also found evidence that ties Hezbollah to two notorious criminal organizations, the Primeiro Comando da Capital and Comando Vermelho.



US-Ukraine Minerals Deal: What We Know

In this handout photograph posted on the official Facebook account of Ukraine's Deputy Prime Minister Yulia Svyrydenko late on April 30, 2025, US Treasury Secretary Scott Bessent (L) and Ukraine's Deputy Prime Minister Yulia Svyrydenko (R) sign a minerals deal in Washington DC, amid the Russian invasion of Ukraine.  (AFP photo / Facebook account of Ukraine's Deputy Prime Minister Yulia Svyrydenko)
In this handout photograph posted on the official Facebook account of Ukraine's Deputy Prime Minister Yulia Svyrydenko late on April 30, 2025, US Treasury Secretary Scott Bessent (L) and Ukraine's Deputy Prime Minister Yulia Svyrydenko (R) sign a minerals deal in Washington DC, amid the Russian invasion of Ukraine. (AFP photo / Facebook account of Ukraine's Deputy Prime Minister Yulia Svyrydenko)
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US-Ukraine Minerals Deal: What We Know

In this handout photograph posted on the official Facebook account of Ukraine's Deputy Prime Minister Yulia Svyrydenko late on April 30, 2025, US Treasury Secretary Scott Bessent (L) and Ukraine's Deputy Prime Minister Yulia Svyrydenko (R) sign a minerals deal in Washington DC, amid the Russian invasion of Ukraine.  (AFP photo / Facebook account of Ukraine's Deputy Prime Minister Yulia Svyrydenko)
In this handout photograph posted on the official Facebook account of Ukraine's Deputy Prime Minister Yulia Svyrydenko late on April 30, 2025, US Treasury Secretary Scott Bessent (L) and Ukraine's Deputy Prime Minister Yulia Svyrydenko (R) sign a minerals deal in Washington DC, amid the Russian invasion of Ukraine. (AFP photo / Facebook account of Ukraine's Deputy Prime Minister Yulia Svyrydenko)

Washington and Kyiv have signed a new minerals deal that will see the United States invest in Ukraine's rare earth and other deposits as it seeks to reduce military aid to the war-torn country.

The deal came together after US President Donald Trump demanded compensation for US aid given to Ukraine under his predecessor Joe Biden's administration, and follows weeks of delays following a spat in late February between Trump and Ukrainian leader Volodymyr Zelensky.

Here's what we know about the agreement -- which lacks any explicit security guarantees for Ukraine:

- What's in the deal? -

Under the terms of the deal announced on Wednesday, Ukraine and the United States will establish a joint Reconstruction Investment Fund.

The fund will be controlled by a company with "equal representation of three Ukrainian and three American board members," the US Treasury Department said in a statement.

The agreement covers 57 types of resources, including oil and gas.

If the United States decides to buy the resources, they will be given "first choice to either acquire them or designate the purchaser of our choice," the Treasury Department said.

The new fund "will receive 50 percent of royalties, license fees, and other similar payments from natural resource projects in Ukraine," according to the US Treasury.

Its profits will be invested exclusively in Ukraine for the first 10 years, after which profits "may be distributed between the partners," Kyiv said.

- What resources does Ukraine have? -

Ukraine holds about five percent of the world's mineral resources and rare earths, according to various estimates.

But work has not yet started on tapping many of the resources and a number of sites are in territory now controlled by Russian forces.

Ukraine also has around 20 percent of the world's graphite, an essential material for electric batteries, according to France's Bureau of Geological and Mining Research, and is a major producer of manganese and titanium.

It also says it possesses one of the largest lithium deposits in Europe, which is yet to be extracted.

Kyiv says "rare earth metals are known to exist in six deposits" and an investment of $300 million would be needed to develop a deposit at Novopoltavske, which it claimed was one of the world's largest.

- Does Ukraine have to repay the US? -

Trump demanded compensation for US aid given to Ukraine under his predecessor Joe Biden's administration.

But under the terms of the deal signed this week, Ukraine will not be asked to pay back the billions of dollars it has received from the United States since Russia's invasion of the country in February 2022.

New military aid from Washington will be counted as its contribution to the fund, according to the text of the agreement.

Ukraine said it will maintain full control over its subsoil, infrastructure and natural resources throughout the process.

Kyiv noted that the agreement does not impact its bid for integration with the European Union.

- What does US support mean for Ukraine? -

Ukraine has said any deal would need to include long-term and robust security guarantees that would deter Russia from attacking again.

But the text does not place any specific security obligations on the United States.

It simply says that the United States "supports Ukraine's efforts to obtain the security assurances necessary to build a lasting peace."

However, a US Treasury statement notably mentioned Russia's "full-scale invasion" of Ukraine -- diverging from the Trump administration's usual formulation of a "conflict" for which Kyiv bears a large degree of responsibility.

"This is win-win for both sides," US Treasury Secretary Scott Bessent told Fox Business on Thursday.

"I think this is a strong signal to the Russian leadership," he said.