On October 21, 2024, the Israeli army intensified its military campaign against Hezbollah by targeting the group's economic supplies in Syria. This move is part of a broader strategy to undermine Hezbollah's funding mechanisms, which are crucial for its operations [a7c16698]. A video released that day detailed Hezbollah's funding methods, which involve land, sea, and air routes for transporting Iranian oil to Syria, where it is sold to companies linked to both the Syrian regime and Hezbollah [a7c16698]. The Quds Force, an elite unit of Iran's Revolutionary Guard, oversees these oil transfers, with Syrian companies such as B.S, owned by the Qaterji family, playing a significant role in the trade [a7c16698].
The U.S. Treasury has previously sanctioned entities involved in this network, including the al-Fadel company, which was penalized on May 30, 2023, for aiding Hezbollah [a7c16698]. Additionally, on October 16, 2024, the U.S. imposed sanctions on various entities linked to the illicit Captagon drug trade, which is valued at approximately $1 billion [a7c16698]. This ongoing effort to disrupt Hezbollah's financial channels is part of a larger campaign that has seen targeted actions against oil smuggling networks as recently as September 11, 2024 [a7c16698].
Despite these efforts, economist Karam Shaar has suggested that Hezbollah's funding mechanisms are resilient and can find alternatives to circumvent sanctions [a7c16698]. Iran's funding operations for its allied militias are considered one of the largest money laundering operations in the Middle East, with Iranian oil shipments to Syria valued at over $11 billion since 2012 [a7c16698]. Furthermore, Iran is reportedly pressuring Syria to recover a $50 billion debt, which complicates the economic landscape further [a7c16698]. In April 2023, a Syrian-Iranian Economic Committee was formed to address these debts, indicating the intertwined economic interests between the two nations [a7c16698].
As Israel continues to target Hezbollah's economic infrastructure, the implications for Syria's economy and political stability remain significant. The conflict not only affects Hezbollah's operational capacity but also has broader ramifications for the Syrian regime's financial health and its relations with Iran [a7c16698].