US officials believe cutting Hezbollah’s funding could be key to shifting Lebanon’s balance of power and reducing Iranian influence across the region [Getty]
Iran has managed to transfer nearly $1 billion to Lebanon’s Hezbollah in 2025 despite heavy Western sanctions, according to senior US Treasury official John Hurley, who said Washington now sees a “window of opportunity” in Lebanon to cut the group’s funding and push for its disarmament.
Hurley, the US undersecretary for terrorism and financial intelligence, told Reuters that Tehran continues to channel vast sums of money to Hezbollah through covert financial networks, undermining years of sanctions designed to weaken Iran’s regional influence.
“There’s a moment in Lebanon now. If we could get Hezbollah to disarm, the Lebanese people could get their country back,” Hurley said in an interview from Istanbul during a regional tour that includes Turkey, Lebanon, the UAE and Israel.
He said the key to reducing Hezbollah’s influence lies in “driving out Iranian control that starts with all the money they are pumping into the group”.
The comments follow new US sanctions imposed last week on two individuals accused of using money exchanges to help fund Hezbollah. Washington designates the Iran-backed group as a terrorist organisation, alongside the EU and several Gulf states.
Hurley said the US was stepping up financial and diplomatic pressure on Tehran as part of its “maximum pressure” campaign aimed at curbing uranium enrichment and regional interference, particularly in Lebanon, where Hezbollah’s power has waned since Israel’s devastating 2023–24 war.
Israel has continued carrying out strikes in southern Lebanon despite a year-old ceasefire, alleging that Hezbollah is attempting to rebuild its capabilities.Â
Hezbollah has strongly denied Israel’s claims, saying that Israel has been targeting civilian sites, and has repeatedly called on the Lebanese state to respond to Israel’s attacks.
Lebanon’s government has pledged to disarm all non-state armed groups, but Hezbollah, both a political and military force, has rejected full disarmament while continuing to coordinate with the army on southern frontlines.
Hurley said Iran’s economic struggles have not stopped its support for Hezbollah or other regional proxies.
“Even with everything Iran has been through, even with the economy not in great shape, they’re still pumping a lot of money to their terrorist proxies,” he said.
Tehran, which denies developing nuclear weapons and insists its nuclear programme is for civilian use, has deepened ties with Russia, China, and regional partners since the collapse of nuclear talks in September, after which UN sanctions were reimposed.
US officials believe cutting Hezbollah’s funding could be key to shifting Lebanon’s balance of power and reducing Iranian influence across the region.
