Hezbollah pours tens of millions into drone production

Hezbollah has spent the past three months rearming and rebuilding its military infrastructure following a financial injection from Iran, according to two Lebanese security sources briefed on the group's activities. The rebuild focuses on procuring explosives and manufacturing drones capable of operating within the Israeli-occupied security zone in southern Lebanon.

The group, established by Iran's Islamic Revolutionary Guard Corps in 1982, suffered severe losses in two wars with Israel since 2024. Thousands of fighters and senior leaders were killed, and a large portion of its arsenal was destroyed. Despite these setbacks, the group used the pause in hostilities that began in June to restore capabilities, with a specific emphasis on drone production and command-and-control systems that collapsed during key battles.

One security source and an official close to Hezbollah stated the group received tens of millions of dollars from Tehran to boost its military hardware. This new funding is separate from the approximately $200 million the group previously received from Iran, as reported by Reuters earlier this month. Three other security officials confirmed the restoration of command structures that had broken down during intense fighting.

The rebuilding efforts follow a period of high tension that began in February with the US-Israeli war against Iran. Hezbollah entered the conflict on March 2, attacking Israel in support of Tehran. This action triggered an Israeli response that led to the evacuation of many residents from southern Lebanon. Hostilities largely stopped over the summer as an interim deal between the US and Iran included a ceasefire for Lebanon and mediated talks between Beirut and Jerusalem.

Although full-scale fighting has not resumed, the group remains on high alert for a potential escalation between Washington and Tehran. Sources indicated that Hezbollah has not yet fully prepared its stockpiles or fighting force. This month, the group acknowledged that explosives seized by Lebanese authorities were intended for its explosive drones. A Hezbollah official and a security source confirmed the weapons were specifically for that purpose.

Hezbollah's tactics in previous conflicts involved small units and limited use of anti-tank rockets. This approach left some units isolated at flashpoints like Bint Jbeil and the Ali al-Taher ridge, where they struggled against Israeli remotely operated systems. The Israeli military stated it uses these systems to monitor the south and reduce risk to troops. Hezbollah's media office rejected claims that its command systems had broken down, while Israel's military and Iran's UN mission in Geneva declined to comment.

A US State Department spokesman said Washington would continue to strain Hezbollah's finances through sanctions. A Treasury spokesperson noted that Iran is running out of money and methods to move it. The group has not explicitly stated whether it will join new hostilities, but its media office said it is careful not to give Israeli leaders a justification to escalate efforts against it.