With the recently mediated US-Iran memorandum of understanding (MoU), Hezbollah is in a great position to benefit politically, tactically, and financially. The group is using the dynamic conditions of the peace agreement to undo its wartime losses, despite suffering significant infrastructure destruction, mass population displacement and high casualties during its current war with Israel, Reuters reported.
Although its specifics have not been disclosed, mediator Pakistan has stated that the US-Iranian MoU, which is scheduled to be signed on Friday, is anticipated to put an end to hostilities on all fronts.
Hezbollah fired at Israel in solidarity with Tehran on March 2, sparking an Israeli offensive that has resulted in thousands of deaths and Israel's invasion of the south. This conflict has developed concurrently with the broader US-Iran confrontation, and fighting has stopped in Lebanon at Iran's insistence.
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South Lebanon's condition is still unstable. Iran warned Israel on Tuesday that if it didn't halt attacks in the south, where Israel has stated it will retain soldiers and violence has persisted despite a significant decrease, Iran would respond militarily.
Since its founding by the Revolutionary Guards in 1982, Tehran has funded and armed Hezbollah, a Shi'ite Muslim organisation that Washington has classified as a terrorist organisation. Reuters reported that Iran had guaranteed the organisation it would receive additional funds once assets were unfrozen.
Iran had openly declared its backing for Hezbollah, and that assistance was still ongoing, according to Hezbollah's media office.
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The media office told Reuters that Tehran would continue to support Lebanon "regardless of the details of the retrieval of its funds" when asked if Hezbollah would get a portion of the Iranian monies that were freed.
According to a US official, Washington informed Iran that "funds will not be unfrozen if they are going to any terror organisation". "The MoU also incentivises Iran to keep proxy groups in check, as if they fail to do so, they will be unable to access any benefits of the agreement," the official stated.
Despite years of severe US sanctions, Iran has continued to provide financial support to Hezbollah; according to the U.S. Treasury Department, it sent $1 billion to the organisation in the first ten months of 2025.
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