Kathmandu— The United States government announced Thursday a change in its designation of Hezbollah, now identifying the Lebanon-based armed group as an Iranian proxy, alongside new sanctions targeting individuals and a network accused of funneling funds from Iran. The move comes amid escalating tensions in the region and as the US prepares broader economic measures intended to pressure Tehran. According to the Treasury Department, the newly designated network allegedly moves hundreds of millions of dollars through couriers traveling between Lebanon, Turkey, the UAE, and Iran, circumventing traditional financial systems. This re-designation builds on existing sanctions against Hezbollah and aims to highlight its close ties to the IRGC’s Quds Force.

Shifting Designation Reflects Deeper Ties

The US previously labeled Hezbollah a “terrorist organization” in 1997, later updating it to a “specially designated global terrorist” group in 2001. However, officials stated the new re-designation clarifies that Hezbollah is not an independent entity but rather functions as an extension of Iranian influence. A State Department official explained that this specification recognizes Hezbollah’s ‘service to the Iranian regime under the command of Iran’s Islamic Revolutionary Guard Corps,’ particularly the elite Quds Force. The official further asserted that Hezbollah “operates with little to no regard for Lebanese sovereignty” and dismissed its self-description as a ‘Lebanese resistance movement.’

Alleged Funding Network Targeted

The US Treasury Department imposed sanctions on ten individuals accused of participating in a network led by Turkish businessman Yunus Alper Yilmaz, who allegedly facilitates the transfer of funds to Hezbollah. Washington claims this network utilizes couriers traveling on commercial flights between Lebanon, Turkey, the UAE, and Iran to move ‘hundreds of millions of dollars.’ The Treasury statement alleges that this setup allows Hezbollah to bypass formal financial systems and evade existing sanctions. This action aims to disrupt the flow of resources supporting the group’s activities.

Regional Tensions and Stalled Negotiations

The re-designation of Hezbollah occurs against a backdrop of ongoing conflict and stalled negotiations between Israel and Lebanon, which remain technically at war. Hezbollah has refused to participate in talks while Israeli forces continue their military presence in southern Lebanon and conduct attacks within the country. Hostilities escalated earlier this year when Hezbollah began firing rockets at Israel following the start of its war alongside the US in March, prompting a significant Israeli response that Lebanese authorities report has resulted in over 4,300 deaths. Despite two truce agreements brokered in June, fighting continues, with new attacks reported Friday in towns like al-Mansouri and Mayfadoun.

Recent reports from Lebanon’s National News Agency indicate continued clashes between Israeli forces and Hezbollah on Friday afternoon, including a large explosion near the towns of Arnoun and Kfar Tibnit. The situation remains volatile as negotiations remain stalled and hostilities persist.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.