US Re-designates Hezbollah as a Terrorist Group and Unveils Sweeping New Sanctions

On Thursday, the US re-designated Lebanese Hezbollah as a terrorist group in an effort to demonstrate that the organisation operates as an Iranian proxy acting under orders from Tehran.

According to a statement from the US Treasury Department, Hezbollah is being re-designated as a Specially Designated Global Terrorist for serving the Iranian regime under the command of Iran’s Islamic Revolutionary Guard Corps-Quds Force. Hezbollah originally received a Foreign Terrorist Organisation designation in 1997 and a Specially Designated Global Terrorist designation in 2001.

Additionally, the Treasury's Office of Foreign Assets Control announced the designation of 10 individuals belonging to a network that facilitates cash transfers to Hezbollah. The Treasury noted that the group and its allies utilize financing schemes such as oil smuggling, illicit shipping, commodities sales, and bulk cash smuggling to generate and move funds throughout the region.

The department explained that a network of couriers utilizes commercial airline flights from Lebanon across the region to Iran, transporting up to hundreds of millions of dollars between jurisdictions. This bypasses the formal financial system, allowing Hezbollah to secure foreign currency and evade sanctions. Hezbollah functions as both a political party and an armed group in Lebanon.

These sanctions aim to disrupt funding networks and isolate targeted entities through asset freezes, bans preventing banks from dealing with named entities, and prohibitions on the flow of goods, services, and material support. These measures are distinct from separate actions the US anticipates taking against Iran.

On Wednesday, US President Donald Trump announced what he termed the most crushing economic operation ever enacted against any country, following what he described as Iran's tragic failure to reach a deal with Washington. Alongside Israel, US President Donald Trump initiated a conflict against Iran nearly six months ago. Despite repeated claims of victory, the conflict shows no signs of ending, as Tehran's hardliners remain in power and the economic costs continue to ripple across the global economy.

Treasury Secretary Scott Bessent stated on Thursday that the US is preparing to subject Iran to the greatest co-ordinated economic isolation in the history of the world.