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The Islamic Republic Throws Money at Hezbollah

Iran sent Hezbollah $200, Reuters reports, even as U.S. sanctions and a naval blockade push Iran's own economy toward collapse.

By October 08, 2026

Reuters reports:

Hezbollah has received $200 million from Iran to help Lebanese displaced by this year’s war with Israel, two people with direct ‌knowledge of the transfer said, the first significant aid from the group to supporters who bore the brunt of the conflict.

Hezbollah received the cash last month despite a tightening U.S. economic chokehold on Iran and increasing difficulties in getting funds to Tehran’s Lebanese ally, said the people.

Intermediaries who moved the money charged a 20 percent fee, reflecting the risks of dealing with the group, they said. One said this was four times the normal fee.

Asked for comment, a Hezbollah official said an amount had been secured and a plan for distributing it would be announced in the coming days, without elaborating on the source of the funds.

…

Hezbollah would use the funds to pay an initial $3,000 per family, and priority will go to those whose villages have been destroyed or are inaccessible due to Israeli occupation, the sources said. These number around 50,000 families, one of the sources said.

Iran has maintained financial support to Hezbollah through years of crippling U.S. sanctions: it transferred $1 billion to the group in the first 10 months of 2025, according to the U.S. Treasury Department.

Only in the past few days, the Saudi state-owned Al Arabiya published an opinion piece pointing out the rapidly deteriorating state of the Iranian economy. It says the rial has fallen to about 2.7 million per dollar, losing over half its value in a year, while the U.S. naval blockade has nearly eliminated oil revenue, draining reserves and making imports prohibitively expensive.

Inflation of 70 to 90 percent has wiped out purchasing power, unemployment is rising as factories face shortages and energy rationing, and Iranians are turning to dollars and gold. Even senior officials now acknowledge the severity of the crisis, leaving Tehran to choose between risking unrest and accepting a politically costly deal with the U.S.

So it seems the Islamic Republic is still prepared to throw millions of dollars at Hezbollah even while its own people suffer from a tanking economy. This is clearly a regime that doesn’t give a damn about ordinary Iranians.

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© Divuach Ne’eman R”A, 2025

Simon Plosker

Simon Plosker

With over two decades of experience in various non-governmental organizations in the UK and Israel, Simon Plosker returned to HonestReporting in October 2022 as Editorial Director having previously been part of the organization’s management team from 2005 to 2020.

Prior to his first spell at HonestReporting, Simon worked in Israel for NGO Monitor, BICOM, and served for a short period in the IDF Spokesperson’s Unit. He was Managing Editor of the Geneva-based NGO United Nations Watch for two years before moving back to the frontline defending Israel from media bias.

Simon has a BSoc.Sc in International Studies and Political Science from the University of Birmingham and an MSc in History of International Relations from the London School of Economics. He immigrated to Israel in 2001 from London.

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