US Redesignates Hezbollah as Iranian Proxy, Sanctions Cash-Smuggling Network

The US Treasury amended Hezbollah's terrorist designation to formally characterize it as an Iranian proxy operating under the command of the IRGC-Quds Force, rather than a stand-alone Lebanese organization. The Treasury simultaneously sanctioned 10 individuals accused of running a cash-smuggling network that moves hundreds of millions of dollars to Hezbollah via bulk-cash couriers on commercial flights between Lebanon, Turkiye, the UAE, and Iran, alongside oil-smuggling and illicit shipping schemes. A State Department official said the redesignation "underscores that Hezbollah operates with little to no regard for Lebanese sovereignty, the Lebanese people or the Lebanese state." Hezbollah dismissed the move, saying it "does not need anyone's certification of its Lebanese identity or patriotism." Separately, US General Joseph Clearfield told Lebanese officials that Washington would designate a new pilot zone in south Lebanon itself if Beirut and Israel cannot agree on one.