IDF Intelligence Says Hezbollah Facing Financial Collapse After Cash Stockpiles Destroyed
Israel’s Military Intelligence Directorate says Hezbollah is experiencing an unprecedented financial collapse after Israeli strikes destroyed large cash reserves and ongoing attacks in Iran disrupted the terror group’s primary funding pipeline.
According to Israeli intelligence assessments, the combination of Israeli operations against Iranian regime targets and the destruction of Hezbollah cash storage sites in Beirut has pushed the organization into its worst financial crisis in decades. Hezbollah, which for years relied heavily on Iranian funding and financial exploitation of Lebanese civilians, now finds its main sources of support cut off from both directions.
At the center of the financial blow is the Al-Qard al-Hasan association. Long presented as a charitable organization providing social services and operating as an alternative financial network to Lebanon’s formal banking system, the group has now been identified as Hezbollah’s key financial backbone.
Israeli intelligence officials say the association stored hundreds of millions of dollars in cash that were used to pay salaries to operatives and purchase weapons. According to the Military Intelligence Directorate, “attacks on regime targets have made Hezbollah’s ability to receive money directly from the Iranian terror regime almost impossible,” while the ability to transfer funds through money changers has also been severely disrupted.
Regional geopolitical developments have further worsened Hezbollah’s financial situation. Following the collapse of the Assad regime in Syria, key land smuggling routes used to transfer funds and supplies were severely damaged. As a result, the Al-Qard al-Hasan cash reserves located in civilian neighborhoods in Beirut became the organization’s primary financial fallback.
The IDF said Hezbollah has continued making promises to Lebanese civilians about reconstruction and compensation, but in reality the funds were largely used to strengthen the group’s strategic military capabilities. Military Intelligence stated that “as a result of cutting off the funding chain from its two main sources – Iran on one side and the Lebanese civilian population on the other – Hezbollah’s economy finds itself in the most severe financial collapse in decades.”
The most significant blow came with the strategic decision to target the association’s financial infrastructure during the current war. Israeli forces destroyed cash storage facilities containing large portions of the organization’s operational budget, severely damaging Hezbollah’s ability to carry out terror activities.
Although Iran previously transferred approximately $1 billion for Hezbollah’s compensation and reconstruction program, intelligence officials say much of that money has already been consumed by ongoing military activity and is insufficient to cover the group’s rapidly expanding expenses.
According to Israeli intelligence, “the regime’s involvement in a direct war against Israel and the United States… does not allow it to continue funding and arming the proxy organization in Lebanon.”
Officials say the financial collapse of Hezbollah is also deeply affecting Lebanon itself, which has become economically dependent on the organization. Although Lebanon’s central bank attempted to impose sanctions on the Al-Qard al-Hasan network in July 2025 under international pressure, Hezbollah continued to operate it as what Israeli officials describe as a “terror bank.”
With cash reserves destroyed and Iran increasingly focused on its own survival, Hezbollah now faces growing difficulty paying its members or rebuilding its operational strength. Israeli intelligence says the destruction of the group’s financial infrastructure is weakening Hezbollah across multiple levels and undermining its long-standing claim of being Lebanon’s protector.
{Matzav.com}
