Hezbollah’s Economic Crisis: War Exacerbates Financial Instability

by Emmitt Barry, Worthy News Correspondent

(Worthy News) – Hezbollah, the Iranian backed terrorist group is struggling to fulfill its financial commitments to its followers. The U.S.-designated terrorist organization, Hezbollah acts as a quasi-government in Lebanon, providing jobs and services and compensating families of fighters and others affected by conflict, however the recent war’s financial burden has put these payments at risk, according to a new report by the Wall Street Journal (WSJ).

The World Bank estimated in November that damages to physical structures from the conflict total $3.4 billion, affecting approximately 100,000 homes. Additionally, widows and families of deceased members require assistance, and the wounded need medical care and ongoing financial support.

Hezbollah’s financial troubles are deepening as Lebanon’s new U.S.-backed government works to curb the flow of funds from Iran, the group’s primary financial supporter. This move is part of a broader strategy to limit Hezbollah’s influence and operational capacity in the region.

Additionally, the collapse of the Assad regime in Syria has dealt a significant blow to Hezbollah. This change has severed a critical conduit for weapons and financial support, disrupting a longstanding alliance between Syria, Hezbollah, and Tehran. This has further complicated Hezbollah’s ability to maintain its operations and fulfill its financial commitments.

“Hezbollah no longer has the cash to compensate its constituents,” stated Lina Khatib, an associate fellow at Chatham House told the WSJ. She added that loyalty to the group “is likely to wane in the long term when Hezbollah’s constituents realize that it can no longer offer them financial, political, or security benefits.”

Since the late-November cease-fire, Hezbollah has been reorganizing and assessing the damage. An official from Al-Qard Al-Hassan, Hezbollah’s quasi-bank, stated that the group has evaluated hundreds of thousands of homes and distributed $630 million to those affected by home losses or damages. Each affected individual receives $12,000 to $14,000 annually for rent, plus additional payments for furniture.

However, locals have reported issues with these compensations. They claim that Al-Qard Al-Hassan has recently halted payments on previously issued compensation checks, and some members have received no support whatsoever. Further compounding the issue, a Wall Street Journal report reveals that many are experiencing delays in receiving these funds, with some still awaiting reimbursement for homes and businesses lost in the conflict with Israel.

Copyright 1999-2025 Worthy News. This article was originally published on Worthy News and was reproduced with permission.

More Worthy News

11 Killed in Night Attack on Christian Farming Community in Nigeria
11 Killed in Night Attack on Christian Farming Community in Nigeria
Thursday, April 3, 2025

A night raid by suspected Fulani militants in Bokkos County, Nigeria, left 11 Christians dead, including a pregnant woman, her husband, and a 10-year-old girl.

Pastor in China Sentenced to 5 Years in Jail
Pastor in China Sentenced to 5 Years in Jail
Thursday, April 3, 2025

A house church pastor was sentenced to five years in prison, according to a magazine covering religious liberty and human rights in China.

Israel Strikes Military Targets Across Syria in Bold Warning to Turkey
Israel Strikes Military Targets Across Syria in Bold Warning to Turkey
Thursday, April 3, 2025

Between Wednesday night and Thursday morning, the Israeli Air Force carried out widespread strikes across Syria, targeting military bases and facilities from the Assad regime era — a move widely seen as a warning to Turkey.

NATO Mourns 4 US Troops Killed In Lithuania
NATO Mourns 4 US Troops Killed In Lithuania
Thursday, April 3, 2025

The secretary general of the NATO military alliance on Thursday mourned four American soldiers who were killed during a military exercise in Lithuania.

Trump, Republicans Shrug as Stocks Plummet After Tariffs
Trump, Republicans Shrug as Stocks Plummet After Tariffs
Thursday, April 3, 2025

President Donald Trump and some Republicans were quick to shrug off stock losses Thursday as the market responds to a jolt from Trump’s reciprocal tariffs.

Nearly 2 Trillion Erased In Stocks Within Minutes Over Trump Tariffs
Nearly 2 Trillion Erased In Stocks Within Minutes Over Trump Tariffs
Thursday, April 3, 2025

Roughly $1.7 trillion was erased from the S&P 500 Index of the 500 most influential companies at the start of trading at the New York Stock Exchange Thursday amid worries that President Donald J. Trump’s sweeping new round of tariffs could plunge the economy, and much of the world, into a recession.

India’s Famed Evangelist Pagadala Found Dead
India’s Famed Evangelist Pagadala Found Dead
Wednesday, April 2, 2025

Pastor Praveen Pagadala, one of India’s most well-known Christian evangelists, has been found dead under alleged suspicious circumstances in the southern state of Andhra Pradesh, Worthy News learned Wednesday. He was 46.