Hezbollah spends tens of millions in Iranian cash to rebuild drone capacity

Lebanese security personnel report that Hezbollah has spent the past three months rebuilding its military infrastructure following a new cash injection from Iran. The group is focusing on procuring explosives and manufacturing drones capable of reaching the security zone occupied by the Israeli Defense Forces in southern Lebanon.

Two Lebanese security sources and one individual close to the group stated that Hezbollah received tens of millions of dollars from Tehran to boost its capabilities. This new funding supplements approximately $200 million that the group previously received from Iran, a sum reported by Reuters earlier this month. The financial inflow is intended to offset losses sustained during two wars with Israel since 2024, which resulted in the death of thousands of fighters and the destruction of much of the group's arsenal.

The reconstruction effort includes the restoration of command-and-control structures that collapsed during key battles. One security source and three other officials familiar with the group's operations said these systems broke down on critical fronts, including the town of Bint Jbeil and the Ali al-Taher ridge. Hezbollah's media office rejected the characterization that its command systems had broken down, though the group did not explicitly state whether it would join fresh hostilities.

Operational challenges remain for the group. Officials noted that Hezbollah's tactic of operating in small units and limiting the use of anti-tank rockets left some elements isolated during previous engagements. These units struggled to confront Israeli remotely operated systems, which include weaponized drones and armed remote-controlled vehicles. The Israeli military confirmed it uses these systems to monitor southern Lebanon and reduce troop exposure to threats.

The rearmament occurs amid ongoing tensions in the Middle East following the US-Israeli war with Iran that began in February. Hezbollah attacked Israel on March 2 in support of Iran, triggering an Israeli response that led to the evacuation of many individuals from southern Lebanon. Hostilities largely paused over the summer under an interim Iran-US deal that included a Lebanon ceasefire, though full-scale fighting has not resumed despite the later collapse of that agreement.

Hezbollah is currently on alert for potential escalation between the US and Iran, which could reignite the front in Lebanon. The group acknowledged this month that explosives seized by Lebanese authorities belonged to it and were intended for use against Israel. A Hezbollah official and a Lebanese security source specified that these materials were designated for its explosive drones.

Washington maintains pressure on the group's finances. A US State Department spokesman said the administration would continue to restrict Hezbollah's finances through sanctions. A US Treasury spokesperson added that Iran is running out of funds and methods to move money. Israel's military declined to comment on the reports, and Iran's permanent mission to the United Nations in Geneva did not immediately respond to questions from Reuters.