Israel Targets Hezbollah’s Finances: More Airstrikes Planned \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Israel has announced plans for additional airstrikes on Hezbollah-affiliated financial institution Al-Qard Al-Hassan, which it claims is used to finance attacks against Israel. At least 15 branches were hit on Sunday across Lebanon, including one in a Beirut building that was completely destroyed. Israel’s military aims to dismantle Hezbollah’s funding sources following its ground invasion of southern Lebanon, while tensions between the two sides escalate. Diplomatic efforts to resolve the conflict remain stalled.
Israel Intensifies Strikes on Hezbollah Financial Network: Quick Looks
- More Strikes Planned: Israel plans further airstrikes targeting Hezbollah’s Al-Qard Al-Hassan after hitting 15 branches on Sunday.
- Impact on Civilians: The Israeli military claims the institution funds Hezbollah’s militant operations, but many civilians use its services amid Lebanon’s financial crisis.
- Wider Military Offensive: Israeli ground forces invaded southern Lebanon earlier this month, aiming to push Hezbollah out after continuous cross-border rocket fire.
- U.S. Diplomatic Efforts: The U.S. continues diplomatic efforts, with envoy Amos Hochstein suggesting a new mechanism to replace the outdated 2006 cease-fire agreement.
- Gaza Conflict Parallel: The situation in Lebanon runs parallel to the war in Gaza, where Israel vows to destroy Hamas after the deadly October 2023 raid.
Deep Look:
Israel has intensified its military campaign against Hezbollah in Lebanon by targeting branches of Al-Qard Al-Hassan, a financial institution with deep ties to the militant group. Late Monday, Israeli military spokesperson Rear Adm. Daniel Hagari announced that further strikes were planned after Sunday’s airstrikes hit at least 15 branches across southern Lebanon, the Bekaa Valley, and Hezbollah-dominated neighborhoods in Beirut. The Israeli government claims the quasi-banking system uses civilian deposits to fund Hezbollah’s military operations, including purchasing arms and paying fighters.
The latest round of strikes comes as part of a broader military campaign that began earlier this month with Israeli ground forces entering southern Lebanon. Israel’s aim, according to military officials, is to eliminate Hezbollah’s presence near the border, which has been a flashpoint for violence since Hezbollah began launching rockets into Israel following a Hamas-led attack in 2023. In retaliation, Israel has conducted weeks of airstrikes across Lebanon, causing over a million people to flee their homes.
Among the locations hit on Sunday was a nine-story building in Beirut’s southern neighborhoods, which housed one of Al-Qard Al-Hassan’s branches. The building was flattened by the airstrike, with thick plumes of smoke rising from the city. Bulldozers were seen clearing rubble at the site, where documents from the financial institution were scattered but no cash or valuables were visible. Civilians were evacuated from the area prior to the strikes, and there were no reported casualties.
Al-Qard Al-Hassan, sanctioned by the United States and Saudi Arabia, operates more than 30 branches across Lebanon, filling a gap left by Lebanon’s troubled banking sector. The institution provides loans and savings accounts to civilians, including those unaffiliated with Hezbollah, and has long served as an alternative to Lebanon’s traditional banks, which have been plagued by restrictions and financial collapse since 2019. Many Lebanese civilians, already suffering from the country’s severe economic crisis, rely on the institution for basic financial services.
Despite its role in providing essential services to civilians, Israel argues that Al-Qard Al-Hassan is a key cog in Hezbollah’s financial operations. According to Israeli officials, including Arabic-language military spokesperson Avichay Adraee, Hezbollah stores hundreds of millions of dollars in the institution’s branches. Israel claims the funds are used to purchase weapons and support Hezbollah fighters, but it has yet to provide concrete evidence for these claims. In a statement on Monday, the Israeli military said the strikes aimed to disrupt Hezbollah’s ability to re-arm.
In response to the airstrikes, Al-Qard Al-Hassan issued a statement assuring its customers that all branches had been evacuated before the attacks and that deposits, including gold held as collateral, had been moved to safe locations. Many civilians with no ties to Hezbollah use the institution for personal savings or loans, and its destruction adds to the uncertainty surrounding Lebanon’s already devastated economy.
Meanwhile, Hagari also alleged that Iran continues to fund Hezbollah through clandestine transfers of cash and gold to the Iranian embassy in Beirut. He claimed Israeli intelligence had discovered that former Hezbollah leader Hassan Nasrallah’s bunker had been repurposed into a finance vault beneath a hospital in southern Beirut, containing millions of dollars in cash and gold. The director of the hospital, Fadi Alameh, who also serves as a member of Lebanon’s parliament, denied these allegations, stating that the underground facility is used for medical operations, not financial activities. The hospital began evacuating staff and patients ahead of potential Israeli strikes, according to Alameh.
The escalating conflict in Lebanon has drawn increasing international concern. U.S. diplomat Amos Hochstein, who has spent much of the past year attempting to broker a cease-fire between Israel and Hezbollah, returned to Lebanon on Monday for talks with senior Lebanese officials. Hochstein acknowledged the limitations of U.N. Security Council Resolution 1701, which was passed in 2006 to end the war between Israel and Hezbollah. He argued that the resolution, which called for Hezbollah’s withdrawal from the border and U.N. peacekeepers to control southern Lebanon, is now “no longer enough” to ensure peace. He stressed the need for a new mechanism to enforce a more lasting resolution to the conflict.
In parallel to the situation in Lebanon, the war in Gaza continues to rage. Israel’s recent assassination of Hamas leader Yahya Sinwar has thrown negotiations for a Gaza cease-fire into disarray. Hamas has vowed to continue fighting until its conditions are met, which include Israel’s withdrawal from Gaza and the release of Palestinian prisoners in exchange for dozens of Israeli hostages. Prime Minister Benjamin Netanyahu has refused to back down, vowing to destroy Hamas and secure the release of the hostages, of which around 100 are still believed to be held in Gaza.
The conflict between Hamas and Israel began on October 7, 2023, when Hamas militants broke through Israel’s security fence and launched a brutal attack on southern Israeli towns. The assault, which killed roughly 1,200 people, mostly civilians, and resulted in 250 kidnappings, was the deadliest in Israel’s history. Since then, Israel has retaliated with a large-scale offensive in Gaza, which has claimed more than 42,000 Palestinian lives, according to local health authorities. The destruction in Gaza has displaced around 90% of the territory’s 2.3 million residents, adding to the humanitarian crisis.
Diplomatic efforts to halt both the Lebanon and Gaza conflicts remain tenuous. While Egypt continues to play a critical role as a mediator between Israel and Hamas, negotiations have repeatedly stalled, particularly over the issue of Israeli military presence along the Gaza-Egypt border. Netanyahu’s insistence on maintaining an open-ended security presence in Gaza to prevent Hamas from re-arming has been a major sticking point. Meanwhile, the death of Sinwar has further complicated talks, with Hamas reiterating its demands for a cease-fire and prisoner release.
As both conflicts in Lebanon and Gaza continue to escalate, international efforts to broker peace face an uphill battle. With Israel preparing further strikes on Hezbollah’s financial network and Gaza in ruins, the prospects for a peaceful resolution appear increasingly remote.
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