BEIRUT/DUBAI, June 17: Iran's interim deal with the U.S. looks set to bolster Hezbollah's political and financial hand in Lebanon, with Tehran promising more funding for its ally once cash starts to flow, according to four sources familiar with ties between Tehran and the group.
A cash infusion to Hezbollah could help it recover from heavy wartime losses and deliver a setback to Israel, which dealt the Iran-backed group crushing blows in a 2024 war and has campaigned against sanctions relief for Tehran.
The U.S.-Iranian memorandum of understanding (MoU), due to be signed on Friday, is expected to halt hostilities across all fronts, mediator Pakistan has said, although its terms have not been made public.
The halt to fighting -- at Iran's insistence -- includes Lebanon, where Hezbollah fired at Israel in solidarity with Tehran on March 2, igniting an Israeli offensive that has killed thousands and led Israel to invade the south, in a conflict that has unfolded in parallel to the wider U.S.-Iran confrontation.
The situation in south Lebanon remains volatile. Iran warned Israel on Tuesday to expect an Iranian military response if it didn't stop attacks in the south, where Israel has said it will keep troops and violence, albeit much reduced, has continued.
The ceasefire in Lebanon leaves Hezbollah politically emboldened after two years of setbacks, including the fall of Hezbollah's Syrian ally Bashar al-Assad in December, 2024.
It also corners Lebanon's U.S.-backed government, which failed in its own efforts to secure a broader ceasefire in face-to-face talks with Israeli officials in Washington over the past two months as a pathway to curbing Hezbollah's military role.
Hezbollah, a Shi'ite Muslim group designated a terrorist organisation by Washington, has been armed and financed by Tehran since it was founded by the Revolutionary Guards in 1982.
Two regional diplomats briefed by Tehran said Iran had assured the group it would receive more funds once assets are unfrozen, while a senior Lebanese source said Iran had promised funds as soon as possible, and another Lebanese source said Iran was expected to boost support. None of the sources gave figures.
South Korea will move its Civilian Control Line closer to the border with North Korea to give local residents more freedom of access.
Hezbollah's media office said Iran had publicly announced its support to Hezbollah and that help was continuing.
Asked whether Hezbollah would receive a share of released Iranian funds, the media office told Reuters Tehran would continue to support Lebanon "regardless of the details of the retrieval of its funds".
A U.S. official said Washington had told Iran "funds will not be unfrozen if they are going to any terror organization".
"The MoU also incentivizes Iran to keep proxy groups in check, as if they fail to do so, they will be unable to access any benefits of the agreement," the official said.
The Israeli prime minister's office and Iran's foreign ministry did not respond to requests for comment.
Iran has maintained financial support to Hezbollah through years of crippling U.S. sanctions: it transferred $1 billion to the group in the first 10 months of 2025, according to the U.S. Treasury Department.�"REUTERS
