Iran Seeks New Channels to Funnel Cash to Hezbollah

Hezbollah supporters wave flag in protest against US envoy’s south Lebanon visit (AP)
Hezbollah supporters wave flag in protest against US envoy’s south Lebanon visit (AP)
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Iran Seeks New Channels to Funnel Cash to Hezbollah

Hezbollah supporters wave flag in protest against US envoy’s south Lebanon visit (AP)
Hezbollah supporters wave flag in protest against US envoy’s south Lebanon visit (AP)

A senior Iraqi official said he rebuffed a request from Iran in late August to grant “extraordinary facilities” at a western border crossing for the transfer of large sums of cash to Lebanon’s Hezbollah via Syria, citing political and security risks.

The official, who spoke to Asharq Al-Awsat on condition of anonymity, said Tehran had assured him its networks inside Syria could handle the onward transfer. “They told us, ‘We have people who can deliver it to Damascus. Iraqis should not worry about that,’” the official said.

Cross-border sources in Syria and Lebanon said Iranian efforts to funnel funds to Hezbollah – under mounting pressure from US and Lebanese demands to disarm – have intensified in recent weeks, with some shipments reportedly making it through with the help of smuggling networks.

Washington is now tracking financial channels that may have moved millions of dollars into Hezbollah’s coffers, according to regional security sources.

Hezbollah, facing strains within its Shi’ite support base, is seeking fresh resources to shore up loyalty and rebuild military strength, Lebanese political figures say.

A US Republican senator, Lindsey Graham, told Lebanese lawmakers last month that Washington had intelligence showing Hezbollah received fresh injections of cash, and he warned the US was probing how the transfers took place.

Iran, bracing for what it calls an inevitable new war with Israel, has instructed allied militias to explore new ways to sustain Hezbollah, Iraqi Shi’ite political leaders told Asharq Al-Awsat.

“It is a mistake to assume Iran will go into the next confrontation without deep, resilient defensive lines in the region, especially in Lebanon,” one said.

The push reflects Tehran’s difficulties in Iraq, where Shi’ite factions face tighter restrictions and are increasingly hesitant to act openly under the “axis of resistance” banner. “The room for maneuver in Baghdad is clearly shrinking,” a senior Shi’ite leader said.

Iraqi security officials said the al-Qaim crossing, near the Syrian town of al-Bukamal, has been under close US surveillance and is considered too risky for covert financial transfers. The area is already known as a “drone playground” for US forces and others, making suspicious movements hard to conceal.

Smuggling routes across the Iraq-Syria frontier – long controlled by Shi’ite groups, remnants of Assad’s forces, ISIS fighters, and other networks – remain active, but Syrian officials insist no cash shipments have crossed through official gateways.

Lebanese analysts say Hezbollah has recently shown a tougher stance on disarmament, reversing earlier signals of compliance, a shift they link to possible fresh funding. While the group has limited its public spending to repairing homes in Beirut’s southern suburbs, many believe it is stockpiling cash for the next war.

The US Treasury has repeatedly announced fresh measures to choke off Iranian financing, and in 2022 estimated Tehran supplied Hezbollah with up to $700 million annually. Hezbollah’s former leader, Hassan Nasrallah, had openly boasted in 2016 that Iran was its primary source of funding.

Despite Israeli strikes targeting financiers and couriers between Iran, Iraq and Lebanon, regional sources say Tehran and Hezbollah continue to preserve alternative routes for money transfers.

Lebanese security officials admit sealing the porous Syrian border remains difficult, with vast stretches open and the under-resourced Lebanese army struggling to block illicit crossings.

 



Cargo Ship Hit in Strait of Hormuz, Crew Evacuating

The Callisto tanker sits anchored as the traffic is down in the Strait of Hormuz, amid the US-Israeli conflict with Iran, in Muscat, Oman, March 10, 2026. REUTERS/Benoit Tessier
The Callisto tanker sits anchored as the traffic is down in the Strait of Hormuz, amid the US-Israeli conflict with Iran, in Muscat, Oman, March 10, 2026. REUTERS/Benoit Tessier
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Cargo Ship Hit in Strait of Hormuz, Crew Evacuating

The Callisto tanker sits anchored as the traffic is down in the Strait of Hormuz, amid the US-Israeli conflict with Iran, in Muscat, Oman, March 10, 2026. REUTERS/Benoit Tessier
The Callisto tanker sits anchored as the traffic is down in the Strait of Hormuz, amid the US-Israeli conflict with Iran, in Muscat, Oman, March 10, 2026. REUTERS/Benoit Tessier

A projectile hit a cargo ship Wednesday in the Strait of Hormuz, setting the vessel ablaze after the United States targeted Iranian minelaying vessels that could target the narrow mouth of the Arabian Gulf.

The United Kingdom Maritime Trade Operations center, run by the British military, said the vessel had been hit just north of Oman in the strait.

"It has been reported that a cargo vessel has been hit by an unknown projectile in the Straits of Hormuz which has resulted in a fire onboard," the security agency said.

It added that the crew was evacuating the ship.

US President Donald Trump said in social media posts there were no reports of Iran planting explosives in the Strait of Hormuz, through which 20% of the world’s oil is shipped.

The US said it took out more than a dozen minelaying Iranian vessels Tuesday to help prevent any attempt to close the waterway.

Iran's vow not to allow any oil through the strategic strait has led to market volatility and fears of shortages, especially in Asia, which is dependent on oil shipped from the region.

Some tankers, believed linked to Iran, are continuing to get through the Strait of Hormuz.

Some of the ships getting through are so-called “dark” transits, meaning they aren’t turning on their Automatic Identification System tracks, which show where vessels are.

Vessels carrying sanctioned Iranian crude often turn off their AIS trackers.

The security firm Neptune P2P Group said Wednesday that seven ships had passed through the strait since March 8. Of those, five were linked to Iranian-associated shipping, it said.

The commodity-tracking firm Kpler said Iran has restarted crude exports through its Jask oil terminal on the Gulf of Oman.

A tanker loaded roughly 2 million barrels at Jask on March 7, the firm said.


Iraqi Judiciary Signals Action Against Factions Over Embassy Attacks

Members of Kataeb Hezbollah attend the funeral in Baghdad of comrades killed in a strike on the Syrian border (file photo – Reuters)
Members of Kataeb Hezbollah attend the funeral in Baghdad of comrades killed in a strike on the Syrian border (file photo – Reuters)
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Iraqi Judiciary Signals Action Against Factions Over Embassy Attacks

Members of Kataeb Hezbollah attend the funeral in Baghdad of comrades killed in a strike on the Syrian border (file photo – Reuters)
Members of Kataeb Hezbollah attend the funeral in Baghdad of comrades killed in a strike on the Syrian border (file photo – Reuters)

Pro-Iran factions are facing possible prosecution and conviction by Iraq’s Supreme Judicial Council, as US strikes continue to target their positions in areas suspected of launching attacks on diplomatic missions and American interests in the Kurdistan region.

On Monday evening, an attack targeted the United Arab Emirates consulate and Erbil airport near a US base, according to videos and eyewitnesses, while the Iraqi government is moving toward announcing the names of those responsible after attempts to halt the attacks, which have continued for about a week, failed.

A drone struck the UAE consulate in the Mass City area on the road linking Erbil with the Salahaddin district, without causing any reported damage.

Condemnations

Iraq’s foreign ministry on Tuesday condemned attacks targeting diplomatic missions and consulates in Baghdad and the Kurdistan region, reaffirming its rejection of any assault on diplomatic missions and saying the competent authorities would take legal action against those involved.

In a statement, the ministry said Iraq’s position was firm in rejecting any attacks against diplomatic and consular missions and stressed its commitment to providing full protection to ensure they can continue operating and carrying out their duties in a safe environment, in line with relevant international obligations.

The ministry added that Iraqi authorities were closely monitoring any incidents affecting diplomatic missions and would take the necessary legal measures against those responsible to safeguard their security and prevent such attacks from recurring.

The UAE also condemned the drone attack on its consulate in the Kurdistan region, saying the targeting of diplomatic missions and premises constituted a violation of international norms and laws.

It called on the governments in Baghdad and Erbil to reveal the circumstances of the attack and hold those responsible accountable.

Saudi Arabia’s foreign ministry on Tuesday expressed solidarity with the UAE and likewise condemned the targeting of the Emirati consulate general in the Kurdistan region, saying the attack violated international norms and laws and stressing the need to respect the sanctity of diplomatic mission buildings.

Judicial measures

In a later development, Iraqi Foreign Minister Fuad Hussein met on Tuesday with Faiq Zaidan, head of Iraq’s Supreme Judicial Council, to discuss “judicial and legal measures taken against the perpetrators of terrorist crimes represented by attacks on diplomatic missions, institutions and citizens in Iraq,” according to a statement.

It is one of the rare occasions in Iraq when firm positions are voiced against the conduct of the factions, while observers note that the targeting of diplomatic missions could turn into a judicial case leading to trials of members and leaders of these Iran-aligned groups.

However, observers doubt the government’s ability to confront the Iran-backed armed factions that continue launching rockets and drones at various sites across Iraq. Many of the attacks have focused on the Kurdistan region, which has been hit by more than 200 strikes targeting various locations, infrastructure and foreign consulates.

The group known as the Islamic Resistance in Iraq said on Tuesday it had carried out 37 military operations within the past 24 hours inside Iraq and elsewhere in the region.

As the attacks persist, reliable sources say the failure of attempts to curb the factions may push the Iraqi government to “expose the groups involved in the attacks by name,” according to Iraqi officials cited by sources.

The government of Prime Minister Mohammed Shia al-Sudani, whose term is ending, is facing local, regional and international pressure to rein in the armed groups. Authorities have shown little capacity to act effectively and often limit their responses to mere condemnations, placing the government in an embarrassing position before citizens and the international community.

On Sunday, Bafel Talabani, leader of the Patriotic Union of Kurdistan party, presented Baghdad with what he said was a list of names of some of the armed groups attacking the region, though federal authorities have yet to take serious action.

The US Consulate General in Erbil confirmed on Tuesday that US Secretary of State Marco Rubio spoke by phone with al-Sudani.

It said Rubio strongly condemned the terrorist attacks carried out by Iran and terrorist militias allied with it in Iraq, including the Kurdistan region, referring to attacks targeting US diplomatic missions and facilities in Iraq and the Kurdistan region.

Both sides stressed the importance of the Iraqi government taking all necessary measures to protect US personnel and diplomatic facilities.

“Deep state”

Kifah Mahmoud, media adviser to Masoud Barzani, leader of the Kurdistan Democratic Party, said he doubted the federal government’s ability to confront the armed factions.

“What is strange about these attacks is that the government forms investigation committees involving parliament and security agencies — most of them from influential Shiite forces — then they investigate and identify those responsible, but they do not announce the results or take any action against them,” Mahmoud told Asharq Al-Awsat.

Mahmoud said Iraqi actors may be deliberately covering up the results of investigations or are too weak to hold the perpetrators accountable.

“It is difficult to hold these groups accountable because they form a deep state that possesses all the means necessary to practice its terrorism against the state and its legitimate institutions,” he said.

Kidnapping risk

Meanwhile, the US embassy in Baghdad warned American citizens in Iraq on Tuesday of rising security risks, saying they face threats including kidnapping and attacks targeting US citizens and their interests, and urging them to leave the country when conditions permit.

In a security alert, the embassy said Iran and armed groups loyal to it continue to pose a serious threat to public security, urging US citizens to exercise caution, avoid drawing attention to themselves and stay away from locations associated with the US or where Americans gather.

The alert said previous attacks had targeted American citizens and interests in Iraq, warning that US nationals face kidnapping risks. US companies, hotels frequented by foreigners and other facilities linked to the United States have also been attacked in the past.

The embassy added that citizens who choose to remain in Iraq should be prepared to shelter in place for extended periods and ensure they have food, water, medicines and other essential supplies.


Israel Strikes Apartment Building in Central Beirut

Emergency services inspect the damage after an Israeli strike targeted an apartment at a building in the Aisha Bakkar neighborhood, Beirut, Lebanon, 11 March 2026. (EPA)
Emergency services inspect the damage after an Israeli strike targeted an apartment at a building in the Aisha Bakkar neighborhood, Beirut, Lebanon, 11 March 2026. (EPA)
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Israel Strikes Apartment Building in Central Beirut

Emergency services inspect the damage after an Israeli strike targeted an apartment at a building in the Aisha Bakkar neighborhood, Beirut, Lebanon, 11 March 2026. (EPA)
Emergency services inspect the damage after an Israeli strike targeted an apartment at a building in the Aisha Bakkar neighborhood, Beirut, Lebanon, 11 March 2026. (EPA)

An Israeli strike hit an apartment in central Beirut on Wednesday, state media reported, the second targeting of the heart of the Lebanese capital since the latest war with Iran-backed group Hezbollah broke out. 

Israeli media said the strike targeted an office used by the Jamaa Islamiya group that has ties with Hezbollah. They said four people were killed and four others wounded. 

Lebanon was drawn into the Middle East war last week when Hezbollah attacked Israel in response to the killing of Iranian supreme leader Ali Khamenei in US-Israeli strikes. 

Israel, which kept up strikes targeting Hezbollah despite a 2024 ceasefire, has since launched attacks across Lebanon and sent ground troops into border areas. 

Lebanon's state-run National News Agency (NNA) said that "the enemy targeted an apartment in the Aisha Bakkar area" in central Beirut, a densely populated neighborhood close to one of the city's biggest shopping malls. 

AFPTV's live broadcast showed the sound of an airstrike followed by a fireball erupting in an apartment within a multi-story residential building in Beirut. 

An AFP correspondent saw destroyed walls in a building's seventh and eighth floors with damaged cars nearby and security forces present at the scene. 

Last week the Israeli army targeted a hotel in central Beirut, with Iran's permanent mission to the United Nations saying it killed four of its diplomats. 

- Southern suburbs - 

Earlier on Wednesday, the NNA reported an Israeli strike on Beirut's southern suburbs, where Hezbollah holds sway. 

The Israeli military had said in a statement it "has begun strikes against Hezbollah infrastructure" in the area. 

It reiterated on Tuesday its call for residents to evacuate the southern suburbs before launching strikes. 

Hezbollah said in separate statements on Tuesday that its fighters had attacked Israeli troops near the southern border towns of Khiam and Odaisseh, and launched rockets at Israel including at a "missile defense site" south of Haifa. 

It later said it was engaging an Israeli force near the border town of Aitaroun "with light and medium weapons". 

Lebanese authorities said Tuesday that 759,300 people had been registered as displaced, with 122,600 staying in shelters. 

The health ministry on Wednesday said that "successive raids launched by the Israeli enemy" on the southern town of Qana, Tyre district, killed five people and wounded five others. 

In Hennawiyeh, Tyre district, the ministry said the night prior that an Israeli strike wounded two people, and a follow-up attack killed them, along with a rescuer who came to the scene. 

A strike on Zalaya in the southeast killed one, per the ministry.