Following the death of long-time leader Hasan Nasrallah, Hezbollah is confronting a significant financial crisis, exacerbated by the severing of traditional funding sources from Iran. Economic pressures combined with political setbacks, such as the election of a U.S.-backed candidate, have compounded their challenges. Analysts warn that Israeli airstrikes and an internal shift in the political landscape have further diminished Hezbollah's influence. The group struggles to meet the reconstruction needs of its constituents after the recent war with Israel, which inflicted an estimated $8.5 billion in damage to Lebanon.
The financial straits come at a time when Hezbollah is under pressure to compensate and provide support to constituents disgruntled with the slow pace of reconstruction.
Restricting Iranian flows has put the group in a challenging position said Sam Heller, a nonresident fellow at the Century Foundation.
The war in Lebanon began after the Oct. 7, 2023, Hamas attacks on Israel and intensified in September, ultimately dealing Hezbollah a series of withering blows.
At home, Hezbollah has been increasingly sidelined by its political opponents, who have capitalized on the group's setbacks.
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