Hezbollah Rebuild: Iranian Cash Fuels Drone Production

Hezbollah has spent the last three months preparing for a potential restart of fighting with Israel. The group is using new funding from Iran to purchase explosives and manufacture drones. Two Lebanese security sources briefed on the activities told Reuters that the organization is focused on building aircraft capable of flying into the security zone held by Israeli forces in southern Lebanon.

The militant group, founded by Iran’s Islamic Revolutionary Guard Corps in 1982, suffered heavy losses in two wars with Israel starting in 2024. Thousands of fighters and numerous leaders were killed, and much of its arsenal was destroyed. Despite these setbacks, Hezbollah remains committed to attacking Israel. It has used the pause in hostilities since June to rearm.

Sources indicate the group received tens of millions of dollars from Iran to boost its military capabilities. This new infusion comes in addition to approximately $200 million that Tehran provided earlier, according to a report by Reuters this month. One source and another individual close to Hezbollah confirmed the receipt of these funds.

The group is working to restore command and control structures that failed during key battles. One source and three other security officials familiar with the operations said these systems broke down in critical engagements. Hezbollah’s media office rejected the idea that its command systems had collapsed when asked by Reuters. The Israeli military declined to comment, and Iran’s mission to the United Nations in Geneva did not immediately respond to questions.

Tensions in the region remain high following the US and Israeli war with Iran that began in February. Hezbollah attacked Israel on March 2 in support of Iran, which triggered an Israeli response. That response led to the evacuation of many residents, mostly from the Shi'ite Muslim community, in southern Lebanon. Hostilities largely stopped over the summer after an interim deal between Iran and the US included a ceasefire for Lebanon.

Washington continues to pressure the group financially. A US State Department spokesman said the US would keep restricting Hezbollah’s finances through sanctions. A US Treasury spokesperson added that Iran is running out of money and ways to move it. Full-scale fighting has not resumed in Lebanon, even after the US and Iranian deal collapsed, though Israel continues to strike Hezbollah targets in the south.

Lebanese sources say Hezbollah has not yet fully prepared its stockpiles or fighting force. The group is still restocking. This month, it acknowledged that explosives seized by Lebanese authorities belonged to it. A Hezbollah official and a Lebanese security source told Reuters the explosives were intended specifically for its explosive drones. The group is on alert for a possible escalation between the US and Iran that could reignite the front in Lebanon.

Repairing command capabilities is a priority after losses in areas like the town of Bint Jbeil and the Ali al-Taher ridge. Officials said Hezbollah’s tactic of using small units and rationing anti-tank rockets left some fighters isolated. They struggled to face Israel’s remotely operated systems, which include weaponized drones and armed remote-controlled vehicles. The Israeli military uses these systems to monitor southern Lebanon and reduce risk for troops. Hezbollah’s media office said it was wary of giving Israeli leaders a reason to escalate efforts against the group.