The US strategy in Lebanon and Syria is moving on two parallel tracks: field and logistical pressure in the south to shrink Hezbollah’s area of operations, and a financial squeeze targeting its civilian funding network.
At the same time, Washington’s renewed security engagement with Damascus has become a new arm in its effort to contain the group by cutting off its supply routes.
Tighter financial chokehold
In Beirut, the visit of a US Treasury delegation signaled the start of a tougher phase in Washington’s financial crackdown.
The delegation, which included Treasury officials and White House counterterrorism experts, delivered a clear message to Lebanese officials: The issue is no longer only about weapons, but about the parallel economy that sustains Hezbollah.
The Americans called for the closure of Hezbollah-affiliated financial institutions, most notably Al-Qard Al-Hassan Association, and for tighter oversight of currency exchange offices and cash transfers through which Iranian funds flow.
They also urged Lebanon to reinforce banking compliance mechanisms ahead of the 2026 elections.
According to economic sources, the United States believes Lebanon’s “cash economy” has become an indirect lifeline for Hezbollah, with transfers from Tehran exceeding $1 billion since the beginning of the year.
The Treasury delegation reportedly gave Beirut a short deadline to enact financial reforms or face expanded sanctions on individuals and institutions accused of facilitating Hezbollah’s financing.
From battlefield pressure to financial warfare
Lebanese lawmaker Mark Daou told Asharq Al-Awsat that “Washington’s approach to Hezbollah has clearly shifted from military confrontation to financial and logistical strangulation.”
He said the latest US delegation’s visit to Beirut — which included Treasury officials and White House counterterrorism experts, “carries implications that go beyond financial monitoring.”
“The visit comes as part of broader efforts to target Hezbollah’s domestic financing network, especially after the group’s reduced military activity in recent months,” Daou said.
“The United States views the financial supply route as the main channel for rebuilding Hezbollah’s military capabilities, and that’s why it is tightening its oversight.”
Expanding to Syria
Daou added that “Washington’s efforts are not limited to Lebanon. They extend to Syria, where we are beginning to see a political and security opening toward Damascus aimed at tightening border control and preventing the use of Syria as a logistical corridor for Hezbollah.”
He said the United States believes “border cooperation with Damascus serves its core goal of containing Hezbollah and Iran, whom it views as direct adversaries in the region.”
Daou noted that “US focus now includes civilian institutions linked to the group, such as Al-Qard Al-Hassan and other social and educational associations,” adding that “the attention on Al-Qard Al-Hassan stems from its role in providing liquidity to Hezbollah through the liquidation of gold and guarantees after its access to traditional banking channels was restricted.”
He said some of these entities are already showing signs of financial strain. “Even Hezbollah-run schools are struggling to collect tuition and pay teachers’ salaries, reflecting the growing pressure on the parallel economy the group built over decades.”
A growing push to reclaim the south
According to sources familiar with meetings held by US envoy Morgan Ortagus during her recent visit to Beirut, “the American side spoke seriously about the need to prevent Hezbollah’s development and social institutions from dominating southern Lebanon.”
The sources said Washington stressed that Hezbollah’s civilian presence “is no less dangerous than its military one,” describing these institutions as “a permanent incubator and an alternative source of funding for its organizational structure.”
Civil network under pressure
Political analyst Marwan El-Amine told Asharq Al-Awsat that “certain groups in Syria are now collaborating with Hezbollah and the Iranians in smuggling weapons, not for ideological or political motives but for financial gain. Hezbollah pays these groups to move arms and storage facilities from Syria into Lebanon.”
He added that Syria’s formal participation in the international coalition against terrorism, coupled with international calls for Damascus to reassert state control over its entire territory, “is expected to curb this type of smuggling into Lebanon and, by extension, to Hezbollah.”
El-Amine noted that the US delegation’s recent visit to Beirut “was not merely consultative — it also addressed Hezbollah’s continued money smuggling through ports and crossings, with emphasis on tightening monitoring in this regard.”
He stressed that “pressure on Hezbollah is no longer just political or military, but directly financial, targeting the group’s funding structure and global networks.”
A choice ahead
El-Amine said the region has entered “a new phase defined by economic stability and cross-border development projects, where entities like Hezbollah or Hamas that threaten these initiatives will no longer be tolerated.”
“Drying up Hezbollah’s sources of funding,” he added, “will gradually weaken its social and educational institutions, leaving it with two options: either to become a political party operating within the law, or to remain a group pursued internationally.”
