The United States has reclassified Hezbollah as an Iranian proxy and imposed new sanctions on a financing network the Treasury links to Iran's IRGC and its Quds Force. The measures target 10 individuals accused of moving hundreds of millions of dollars via couriers on commercial flights between Lebanon, Turkiye, the UAE and Iran. The move underscores US findings that Hezbollah operates as an extension of the IRGC rather than as an independent Lebanese movement. It arrives amid US-led mediation between Israel and Lebanon while fighting continues despite temporary truces.
US Reclassifies Hezbollah As Iranian Proxy, Sanctions Alleged Funding Network Tied To IRGC
Israeli attacks on southern Lebanon continue despite agreement for a ceasefire [File: Ibrahim Amro/AFP]
The United States has formally reclassified Lebanon-based Hezbollah as an Iranian proxy and announced new sanctions targeting an alleged financing network linked to Iran's Islamic Revolutionary Guard Corps (IRGC) and its Quds Force.
New Legal Designation And Sanctions
The Treasury Department and State Department unveiled the re-designation and sanctions in a statement on Thursday. The US Treasury said it revised Hezbollah's legal label to reflect the group's "service to the Iranian regime under the command of Iran's Islamic Revolutionary Guard Corps," with particular emphasis on the IRGC's Quds Force.
"This action builds on years of US designations that have repeatedly documented the operational, financial, and logistical integration between Hizballah and the IRGC-QF," a State Department official said, describing Hezbollah as "an extension" of Iran's Quds Force.
Hezbollah was first designated by the United States as a "foreign terrorist organization" in 1997 and recategorized as a "specially designated global terrorist" group in 2001. Officials said the new wording clarifies that Hezbollah functions as an Iranian proxy rather than as an independent Lebanese movement.
Targeting An Alleged Funding Network
The Treasury said the latest measures target 10 individuals accused of operating a network that moved funds to Hezbollah. US authorities allege the network — reportedly led by Turkish businessman Yunus Alper Yilmaz — used couriers on commercial airline flights between Lebanon, Turkiye, the United Arab Emirates and Iran to transfer hundreds of millions of dollars.
According to the Treasury, the scheme provided "an avenue outside the formal financial system for Hezbollah to obtain foreign currency and evade sanctions."
Context: Mediation And Ongoing Conflict
The re-designation comes as Washington mediates talks between Israel and Lebanon, two neighbors that remain technically at war. Hezbollah has refused to participate in the negotiations while Israeli forces continue operations in southern Lebanon.
Hezbollah began launching rockets at Israel in March as regional tensions escalated; Israel responded with heavy airstrikes and a ground campaign. Lebanese authorities report more than 4,300 deaths in the conflict. Although US-led mediation helped secure temporary truces on June 4 and June 26, hostilities have continued and Israeli troops remain inside parts of Lebanon.
Lebanon's National News Agency reported fresh incidents, including airstrikes, bombing and shelling in southern towns such as al-Mansouri and Mayfadoun, and a large explosion between Arnoun and Kfar Tibnit attributed to Israeli forces.
The US says the re-designation and sanctions are part of broader efforts to disrupt Iran's regional networks and financial channels. Hezbollah and Iran reject Western intervention in the Middle East and oppose Israeli military operations in the region.
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