Lebanon Rebuild: Hezbollah Uses Iranian Cash to Restore Drone Production

The military balance in southern Lebanon remains fragile as Hezbollah prepares for renewed conflict. The group has spent the past three months rebuilding its drone capabilities and repairing broken command lines, according to Lebanese security personnel briefed on its activities.

The rebuilding effort is funded by a new infusion of tens of millions of dollars from Iran. This sum adds to approximately $200 million the group previously received from Tehran. The financial injection aims to address gaps in Hezbollah's military capacity after severe losses in two wars with Israel since 2024. Thousands of fighters and many leaders were killed, and much of the group's arsenal was destroyed during those conflicts.

Hezbollah is prioritizing the production of drones designed to fly into the security zone currently occupied by Israeli troops. It is also procuring explosives to support these operations. The group has used the lull in hostilities since June to execute these preparations. Two Lebanese security sources confirmed that the group remains committed to attacking Israel despite the temporary pause in fighting.

Restoring command-and-control structures is a central part of the effort. These systems broke down during key battles, leaving units isolated and struggling to confront Israeli remotely operated systems. Officials noted that Hezbollah's tactic of operating in small units and rationing anti-tank rockets contributed to these communication failures on fronts including the town of Bint Jbeil and the Ali al-Taher ridge. The group is now working to repair these gaps to coordinate future operations.

Hezbollah has not yet fully prepared its stockpiles or fighting force. The group acknowledged this month that explosives seized by Lebanese authorities belonged to it. A Hezbollah official and a Lebanese security source told Reuters that the seized items were specifically intended for use in explosive drones. The group is still in the process of restocking its inventory.

The US State Department said Washington would continue to use sanctions to restrict Hezbollah's finances. A US Treasury spokesperson noted that Iran is running out of money and ways to move it. In response to questions, Hezbollah's media office rejected the suggestion that its command systems had broken down. Israel's military declined to comment, while Iran's permanent mission to the United Nations in Geneva did not immediately respond.

Tensions persist following the US-Israeli war with Iran that began in February. Hezbollah attacked Israel in support of Iran on March 2, which triggered an Israeli response and the evacuation of many residents from southern Lebanon. Hostilities largely abated over the summer due to an interim Iran-US deal that included a Lebanon ceasefire. Israel continues to strike Hezbollah targets in the south, and the group remains on alert for a potential US-Iran escalation.