Hezbollah, the Iran-backed terrorist group, has established a complex and sophisticated financial network that underpins its military and political activities in Lebanon and beyond.

Recent Israeli airstrikes targeting financial institutions associated with Hezbollah have shed light on how the organisation generates and manages its funds.

And a video revealed by the Israeli Defense Forces (IDF) on Monday explained how the terror group has raised money over the years to secure weaponry and run its organisation.

One of the primary financial entities linked to Hezbollah's financial lifeline is heavily intertwined with Iranian support.

The group receives direct funding from the Iranian regime, as revealed by spokesperson Daniel Hagari that “suitcases of cash and gold” are frequently delivered to the Iranian embassy in Beirut by plane.

The Iranian-controlled oil trade also contributes, as funds from oil sales in Syria are channelled back to Hezbollah. Hagari stated that this is run by the Qaterji family. Senior Hezbolla official Baraa Qaterji, who led oil imports in the last decade, was killed in June.

According to the IDF, “tens of millions of dollars” were smuggled into Lebanon and went straight into Hezbollah’s pockets.

Hezbollah also has commerical interests across Lebanon, Syria, Turkey and Yemen to raise funds. This has all been organised by Hezbollah’s chief financial officer Muhammad Ja’far Qasir.

Qasir, who ran the operations for years, was eliminated in a targeted airstrike in Beirut earlier this month.

Hagari explained that this relationship poses a significant threat to the Lebanese economy, as "Hezbollah continue to smuggle Iranian money in dollars it devalues the Lebanese pound”.

Meanwhile the money that does not come from Iran comes straight from the Lebanese “people’s pockets” the IDF confirmed.

Which the Al-Qard Al-Hassan Association (AQAH) has profited from as it has taken advantage of the Lebanese economic crisis.

Recently, the IDF targeted AQAH’s branches in Beirut and surrounding areas, claiming that the organisation is a crucial component of Hezbollah’s funding apparatus.

The finance group binds Lebanese citizens to a separate economic system under Hezbollah control which is used to fund its weaponary rather than rebuild the country, according to the IDF.

The video revealed that the Al-Qard al-Hassan Association pays the salaries of operatives and provides financial services to civilians in areas where Hezbollah has strong support.

According to the Telegraph a Hezbollah fighter reportedly earns around $1,500 a month, significantly more than the $300 earned by a Lebanese soldier. This disparity allows Hezbollah to attract recruits and maintain loyalty through financial incentives.

Perhaps the most alarming aspect of Hezbollah’s funding is its involvement in the illicit drug trade which has been reported by the US government.

Former Mossad’s Terrorism Division Head Oded Ailam told the Telegraph that as much as “40 per cent of Hezbollah's revenue comes from the trade of Captagon”, a powerful amphetamine widely abused in the region.

To effectively weaken Hezbollah, Ailam suggests their “source of income – drug labs, Lebanese banks and the economic systems that allow it to operate” need to damage.

Captagon laboratories, predominantly located in the Bekaa Valley, have become a focal point for operations aimed at dismantling Hezbollah's financial backbone.

This drug trade not only supports Hezbollah but also destabilises the local economy, with profits funnelled through Lebanese banks, as noted by the US Treasury.

The US Drug Enforcement Administration (DEA) has highlighted Hezbollah's transformation into a global crime syndicate, particularly through its Project Cassandra initiative that was launched in 2008, aimed at exposing the group's financial operations.

The DEA has underscored the severity of this issue, with Acting Deputy Administrator Jack Riley stating in 2016: “These drug trafficking and money laundering schemes utilised by the Business Affairs Component provide a revenue and weapons stream for an international terrorist organisation responsible for devastating terror attacks around the world.”