Lebanon: Hezbollah spends Iranian cash rebuilding drone capabilities

Lebanese security personnel report that Hezbollah has spent the last three months preparing for renewed conflict with Israel. The group is using new financial support from Tehran to fix command gaps and build new drones. This activity is taking place during a pause in hostilities that has lasted since June.

Two Lebanese security sources told Reuters that the organization received tens of millions of dollars from Iran. This new funding is separate from the approximately $200 million the group received earlier this month, as reported by Reuters. The cash is being used to boost military capabilities after severe losses in two wars with Israel since 2024.

The group is focusing on procuring explosives and producing drones designed to fly into the Israeli security zone in southern Lebanon. One source close to Hezbollah confirmed that the group is restoring command and control structures that collapsed during key battles. These systems are essential for coordinating attacks against Israeli forces.

Hezbollah’s media office pushed back against the idea that its command systems had broken down. In response to questions from Reuters, the office rejected that suggestion. Israel’s military declined to comment on the reports. Iran’s permanent mission to the United Nations in Geneva did not immediately respond to inquiries.

A US State Department spokesman said Washington would continue to restrict Hezbollah’s finances through sanctions. A US Treasury spokesperson stated that Iran is running out of money and methods to move it. These financial pressures aim to limit the group's ability to rearm.

The group's rebuilding efforts come amid ongoing tensions in the Middle East. Hezbollah attacked Israel on March 2 in support of Iran, which triggered an Israeli response. That response led to the evacuation of many residents from southern Lebanon, mostly members of Hezbollah's Shi'ite Muslim constituency. Hostilities largely stopped over the summer due to an interim deal between Iran and the US.

That deal included a Lebanon ceasefire and talks between Lebanon and Israel mediated by Washington. Full-scale fighting has not resumed despite the collapse of the US-Iranian deal. However, Israel continues to strike Hezbollah targets in the south. The group is on alert for a possible escalation between the US and Iran that could reignite the front.

Sources said Hezbollah has not yet fully prepared its stockpiles or fighting force. The group is still restocking supplies. This month, Lebanese authorities seized explosives that Hezbollah admitted belonged to it. A Hezbollah official and a Lebanese security source told Reuters that those explosives were specifically for its explosive drones.

The group faces challenges in restoring its operational capacity. One Lebanese source and three security officials said Hezbollah must repair command capabilities after losses in the town of Bint Jbeil and the Ali al-Taher ridge. The group's tactic of using small units and rationing anti-tank rockets left some units isolated. They struggled against Israeli remotely operated systems, including weaponized drones and armed remote-controlled vehicles.

The Israeli military told Reuters that it uses these remotely operated systems to monitor southern Lebanon. This strategy reduces the threat exposure of its troops. Hezbollah has not explicitly stated whether it will join fresh hostilities. Its media office said it is wary of giving Israeli leaders justification to escalate efforts against the group.