Hezbollah Rebuilds Drone Production With New Iranian Cash

Hezbollah has spent the last three months preparing for a possible resumption of fighting with Israel, a period marked by the receipt of new financial aid from Iran.

According to two Lebanese security sources and another official close to the group, the organization received tens of millions of dollars from Tehran to boost its military capabilities. This funding supplements approximately $200 million that Hezbollah previously received from Iran, a figure Reuters reported earlier this month.

The group, founded by Iran's Islamic Revolutionary Guard Corps in 1982, suffered severe losses in two wars with Israel since 2024. Thousands of fighters and many leaders were killed, and much of its arsenal was destroyed. Despite these blows, the group has used the lull in hostilities since June to rearm, focusing on procuring explosives and producing drones designed to fly into the Israeli security zone in southern Lebanon.

Security officials say the group is also restoring command-and-control structures that broke down during key battles. One source and three other security officials familiar with operations confirmed these efforts. In response to questions, Hezbollah's media office rejected the suggestion that its command systems had broken down. The Israeli military declined to comment, and Iran's permanent mission to the United Nations in Geneva did not immediately respond to inquiries.

US officials have commented on the financial strain. A State Department spokesman said Washington would continue to strangle Hezbollah's finances through sanctions and other measures. A Treasury spokesperson noted that Iran was running out of money and ways to move cash.

This rebuilding effort occurs against a backdrop of continued tensions in the Middle East. The wider conflict ignited by the US-Israeli war with Iran began in February. Hezbollah attacked Israel in support of Iran on March 2, triggering an Israeli response that led to the evacuation of many individuals, mostly from the Shi'ite Muslim constituency, from areas in southern Lebanon.

Hostilities largely abated over the summer as an interim Iran-US deal included a Lebanon ceasefire and Washington-mediated talks between Lebanon and Israel. Full-scale hostilities have not resumed despite the collapse of the US-Iranian deal, though Israel continues strikes on Hezbollah fighters in the south. The group remains on alert for a potential US-Iran escalation that could reignite the front.

Sources told Reuters that Hezbollah has not yet fully prepared its stockpiles or fighting force. The group is still restocking, having acknowledged this month that explosives seized by Lebanese authorities belonged to it and were intended for use against Israel. A Hezbollah official and a Lebanese security source specified that the explosives were for its drone units.

The group faces specific challenges in repairing its command capabilities after losses on key fronts, including the town of Bint Jbeil and the Ali al-Taher ridge. Officials said that Hezbollah's tactic of operating in small units and rationing anti-tank rockets left some units isolated. These units struggled to confront Israeli remotely operated systems, including weaponized drones and armed remote-controlled vehicles.

The Israeli military stated that it uses remotely operated systems to monitor southern Lebanon and reduce threat exposure for troops. Hezbollah has not explicitly stated whether it will join fresh hostilities, but its media office said it was wary of giving Israeli leaders justification to escalate efforts against the group.