US designates Hezbollah as Iranian proxy and sanctions its funding network

The U.S. Treasury Department announced that it has designated a Lebanon‑based organization as “an extension” of the Islamic Revolutionary Guard Corps’ (IRGC) Quds Force, broadening the scope of sanctions aimed at curbing the group’s financial networks. The designation, part of a broader U.S. effort to disrupt the flow of funds to Iranian-backed militias, places the organization under the same restrictions as other entities linked to the Quds Force, prohibiting U.S. persons from providing financial services and requiring the reporting of any transactions involving the group.

The move follows a series of Treasury actions that have targeted Hezbollah and its affiliates, citing the organization’s role in supporting Iran’s strategic objectives in the region. By labeling the Lebanon‑based group as an extension of the Quds Force, the U.S. signals that it views the organization as an integral component of Iran’s regional influence network. The designation is expected to hamper the group’s ability to access international banking systems and to raise funds through legitimate and illicit channels, thereby tightening the financial pressure on Iranian-backed actors in the Middle East.