Hezbollah Uses Iranian Cash to Fix Command Gaps and Build Drones

The Middle East conflict has seen renewed military preparations by Lebanon's Hezbollah, which is using fresh Iranian funding to rebuild its drone capacity and fix broken command systems. This effort comes after a lull in hostilities that has persisted since June.

Lebanese security personnel briefed on the group's activities stated that Hezbollah has spent the last three months preparing for a possible resumption of fighting with Israel. The group, established by Iran's Islamic Revolutionary Guard Corps in 1982, has suffered heavy losses in two wars against Israel since 2024. Those conflicts resulted in the deaths of thousands of fighters and numerous leaders, while much of its arsenal was destroyed.

The financial injection from Iran is estimated at tens of millions of dollars. This new sum is in addition to approximately $200 million that Hezbollah previously received from Tehran, a figure reported by Reuters earlier this month. The funds are being directed toward procuring explosives and manufacturing drones capable of operating within the security zone occupied by Israeli forces in southern Lebanon.

Command and control structures that failed during key battles are currently under repair. One Lebanese security source and three other officials familiar with operations confirmed that the group is working to restore these systems. However, Hezbollah's media office rejected the idea that its command structures had broken down. Israel's military declined to comment, while Iran's permanent mission to the United Nations in Geneva did not immediately respond to questions.

The US government maintains that it will continue to restrict the group's financial flows. A US State Department spokesman said Washington would keep strangling Hezbollah's finances through sanctions and other measures. A US Treasury spokesperson added that Iran is running out of money and ways to move funds.

Hezbollah remains on alert for a potential escalation between the US and Iran, which could reignite the Lebanon front. Hostilities have largely abated over the summer following an interim Iran-US deal that included a Lebanon ceasefire and Washington-mediated talks. Despite the collapse of that broader deal, full-scale fighting has not resumed in Lebanon, although Israel continues to strike Hezbollah targets in the south.

Sources indicated that the group has not yet fully prepared its stockpiles or fighting force. It is still in the process of restocking. This month, Hezbollah acknowledged that explosives seized by Lebanese authorities belonged to it and were intended for use against Israel. A Hezbollah official and a Lebanese security source told Reuters those explosives were specifically for its explosive drones.

The group also faces challenges in repairing command capabilities after losses in key areas, including the town of Bint Jbeil and the Ali al-Taher ridge. Lebanese sources said that Hezbollah's tactic of operating in small units and rationing anti-tank rockets left some units isolated. Those units struggled to confront Israeli remotely operated systems, which include weaponized drones and armed remote-controlled vehicles. The Israeli military stated it uses these systems to monitor southern Lebanon and reduce the threat exposure of its troops. Hezbollah's media office noted that the group was wary of giving Israeli leaders justification to escalate anti-Hezbollah efforts.