Since Israel's offensive against Hezbollah began in March, the militia group's financial resources have been severely affected. Israeli airstrikes have targeted Hezbollah's financial institutions in Lebanon, currency exchange offices used by Iran to transfer money to the group, and gas stations that boost the organisation's revenues.
Before the war, Hezbollah's annual budget was estimated at around $1 billion. Of this, Iran is said to have contributed around $700 million per year, according to the US State Department. But despite increased financial support from Iran during the war, the group is unable to cover its war costs, the newspaper writes.
Lost income
The fall of the Assad regime in Syria was already a severe blow to Hezbollah's economy, which lost important income from, among other things, arms and drug smuggling to Syria, as The Washington Post has reported.
American and Israeli officials and people familiar with Hezbollah’s finances told The New York Times that Iran has been trying to find new ways to finance the organization. For example, Tehran began using Beirut airport to send money to Hezbollah on civilian flights. This prompted the United States to pressure the Lebanese government to halt all flights from Iran - a measure that remains in effect.
Limited visibility
Iran then turned its attention to Lebanon's Central Bank, which operates under limited transparency. According to the US Treasury, Hezbollah has used the bank and the country's largely cash-based economy to launder money and bring in funds from Iran.
To circumvent financial pressure, some Hezbollah actors have resorted to gold sales, according to information provided to The New York Times.
