Worthy Christian News > Israel-Palestinian Conflict > Hezbollah’s Economic Crisis: War Exacerbates Financial Instability

Hezbollah’s Economic Crisis: War Exacerbates Financial Instability

by Emmitt Barry, Worthy News Correspondent

(Worthy News) – Hezbollah, the Iranian backed terrorist group is struggling to fulfill its financial commitments to its followers. The U.S.-designated terrorist organization, Hezbollah acts as a quasi-government in Lebanon, providing jobs and services and compensating families of fighters and others affected by conflict, however the recent war’s financial burden has put these payments at risk, according to a new report by the Wall Street Journal (WSJ).

The World Bank estimated in November that damages to physical structures from the conflict total $3.4 billion, affecting approximately 100,000 homes. Additionally, widows and families of deceased members require assistance, and the wounded need medical care and ongoing financial support.

Hezbollah’s financial troubles are deepening as Lebanon’s new U.S.-backed government works to curb the flow of funds from Iran, the group’s primary financial supporter. This move is part of a broader strategy to limit Hezbollah’s influence and operational capacity in the region.

Additionally, the collapse of the Assad regime in Syria has dealt a significant blow to Hezbollah. This change has severed a critical conduit for weapons and financial support, disrupting a longstanding alliance between Syria, Hezbollah, and Tehran. This has further complicated Hezbollah’s ability to maintain its operations and fulfill its financial commitments.

“Hezbollah no longer has the cash to compensate its constituents,” stated Lina Khatib, an associate fellow at Chatham House told the WSJ. She added that loyalty to the group “is likely to wane in the long term when Hezbollah’s constituents realize that it can no longer offer them financial, political, or security benefits.”

Since the late-November cease-fire, Hezbollah has been reorganizing and assessing the damage. An official from Al-Qard Al-Hassan, Hezbollah’s quasi-bank, stated that the group has evaluated hundreds of thousands of homes and distributed $630 million to those affected by home losses or damages. Each affected individual receives $12,000 to $14,000 annually for rent, plus additional payments for furniture.

However, locals have reported issues with these compensations. They claim that Al-Qard Al-Hassan has recently halted payments on previously issued compensation checks, and some members have received no support whatsoever. Further compounding the issue, a Wall Street Journal report reveals that many are experiencing delays in receiving these funds, with some still awaiting reimbursement for homes and businesses lost in the conflict with Israel.