Israel Targets Hezbollah’s Financial Lifeline A Deep Dive into Al-Qard al-Hasan Airstrikes

In a significant escalation, the Israeli military launched a series of airstrikes across Lebanon on Sunday, focusing on Al-Qard al-Hasan, a financial institution linked to Hezbollah. This operation marks a strategic move by Israel to undermine Hezbollah’s economic resources amid ongoing tensions in the region.

Established in the early 1980s, Al-Qard al-Hasan, translating to “benevolent loan,” operates as a charity and financial organization within Lebanon. It provides interest-free loans usually capped at $5,000 backed by gold, jewelry, and other valuables. Alongside its loan services, it also offers savings accounts, money transfers, and payment processing, serving primarily the Shiite community, especially in the wake of Lebanon’s banking crisis in 2019.

Al-Qard al-Hasan has evolved into a critical financial hub for Hezbollah, reportedly managing around $750 million annually in Iranian funding and proceeds from the group’s illicit activities. The U.S. Treasury has previously designated the organization as Hezbollah’s de facto banking arm, imposing sanctions since 2007 and further tightening restrictions during Lebanon’s financial crisis.

Rear Adm. Daniel Hagari, Israel’s military spokesman, stated that the strikes were aimed at disrupting Hezbollah’s funding mechanisms. He highlighted that one target was a vault beneath a residential building in Beirut, containing “tens of millions of dollars.” Following the strikes, Israel’s Defense Minister Yoav Gallant designated Al-Qard al-Hasan as a terrorist organization, reinforcing the Israeli government’s commitment to degrading Hezbollah’s military capabilities.

While the immediate physical damage from the airstrikes remains uncertain, experts suggest that any destruction of cash reserves or valuable assets could significantly hinder Hezbollah’s ability to finance future operations. Shlomit Wagman, a former chair of Israel’s Money Laundering and Terrorism Financing Prohibition Authority, noted that while Iran may replenish Hezbollah’s resources quickly, the psychological ramifications of the strikes could weaken trust between Hezbollah and the Lebanese populace.

Lebanon is currently facing a catastrophic economic situation, exacerbated by the collapse of its traditional banking system in 2019. With over a third of the population living below the poverty line, the humanitarian crisis has been further deepened by the recent Israeli bombardments, which have displaced many and destroyed significant infrastructure.

The targeting of Al-Qard al-Hasan represents not just a military maneuver but also a broader strategy by Israel to disrupt Hezbollah’s operations and influence. As Lebanon grapples with an ongoing economic crisis, the repercussions of these airstrikes could resonate deeply within both the financial structures supporting militant groups and the everyday lives of Lebanese citizens.

This comprehensive analysis aims to provide a clear understanding of the recent developments surrounding Al-Qard al-Hasan and its implications for both Israel and Lebanon.