by Anas al-Bar | 2025-09-15

The Iranian regime is reportedly attempting to help Hizbullah cope with financial pressures by smuggling money to the group via overland routes through Iraq.

A report by Asharq Al-Awsat on September 5 highlighted one such attempt through the al-Qaim border crossing between Iraq and Syria.

However, a senior Iraqi official refused a request from an influential Iranian entity to provide facilities for the transfer of a large shipment of money, the newspaper said.

Once across the border, smugglers were expected to move the funds to Hizbullah through Syrian territory, where Iranians have established close ties with local smuggling networks.

Baghdad’s refusal

Baghdad’s refusal reflects its resistance to Iran’s attempts to undermine Iraqi sovereignty, drag Iraq into proxy wars, and exploit its resources and territory to fuel conflicts that threaten regional security.

This firm Iraqi stance prioritizes national interests at a time when Iran faces growing international pressure to halt its funding of proxies and end its military support, particularly to Hizbullah, which is struggling with mounting financial constraints and a diminishing ability to recover from war.

The Lebanese army is moving forward with a plan to disarm the Iran-backed group.

Meanwhile, the Iranian regime is covertly working to counter that effort by increasing funding to Hizbullah, ensuring the group’s survival and using it to destabilize regional peace and security.

Iran’s financial support aims to enable Hizbullah to "stand on its feet again," Iraqi Center for Strategic Studies Director Ghazi Faisal Hussein told al-Fassel.

It also seeks to "restore its military power as one of the most important armed proxies used by Tehran as part of its strategy of interfering in the affairs of states and subordinating their regimes to the Supreme Leader," he said.

The regime’s efforts are designed to "prevent the disarmament of the party to ensure its continued existence as an effective tool for fueling future conflicts and dragging Lebanon, along with the entire region, into them," he added.

Covert channels

The Iranian regime had previously sought to funnel Iraqi money to Hizbullah through secret channels, including bank transfers and management of illicit economic activities.

Iraqi banks linked to the IRGC played a role in facilitating these transfers until the United States froze their assets and imposed restrictions on their financial operations.

"The danger of Iran’s harmful actions to Iraq’s economy and national security by exploiting its funds to prop up Hizbullah’s budget and by turning its soil into a corridor for support and armament," Hussein said.

"This, in turn, constitutes an obstacle to the international community’s efforts to hold Hizbullah accountable and to restrict its harmful activities," he added.