Two people with direct knowledge of the transfer said Hezbollah received $200 million from Iran last month to help Lebanese people displaced by the war with Israel.
The United States disputed the claim, saying Hezbollah was spreading false information about receiving funds from Tehran.
State Department spokesperson Tommy Pigott said the money “is not there” and accused Hezbollah of trying to “save face with fake stories about cash influxes from Iran.”
A US Treasury spokesperson also said Iran was running out of money and ways to move it, adding that Tehran did not have funds to finance its regional activities.
The money was reportedly transferred despite tighter US economic pressure on Iran and growing difficulties in moving funds to Hezbollah in Lebanon.
The sources said intermediaries charged a 20% fee to move the money, four times the usual rate according to one of them, because of the risks involved.
A Hezbollah official confirmed that money had been secured but did not disclose its source. The official said the group would announce a distribution plan in the coming days.
The Iranian foreign ministry, Iran’s permanent mission in Geneva and the Lebanese government did not immediately respond to requests for comment.
Hezbollah plans to give an initial $3,000 payment to each affected family, with priority for families whose villages have been destroyed or remain inaccessible because of Israeli occupation, according to the sources.
One source estimated that about 50,000 families would qualify.
The payments would represent Hezbollah’s first significant assistance to supporters displaced by the latest conflict.
Israel’s bombardment and ground operations in Lebanon displaced hundreds of thousands of people after Hezbollah entered the regional war in support of Iran on March 2.
Hezbollah has faced heavy Israeli attacks in two wars since 2024. The group was founded by Iran’s Revolutionary Guards in 1982 and is designated a terrorist organisation by the United States.
Pigott said Hezbollah had contributed to the suffering of Lebanese people and that US sanctions would continue to target its finances.
“The United States will continue to strangle Hezballah’s finances through sanctions while supporting the ability of Lebanon’s legitimate government to rebuild the South,” he said.
Iran has provided financial support to Hezbollah for years despite US sanctions.
The US Treasury Department said Iran transferred $1 billion to Hezbollah during the first 10 months of 2025.
Tehran has never acknowledged financing Hezbollah.
Iran had promised Hezbollah additional funding after Tehran reached an interim agreement with Washington in June that allowed it to sell oil, Reuters reported at the time. The agreement collapsed in July.
The US has since increased economic pressure on Iran, including tighter sanctions and a naval blockade aimed at stopping Iranian oil exports.
Hezbollah leader Naim Qassem said last month that the group would contribute to a housing project for thousands of people displaced by the war, using “available resources and donations”.
Hezbollah’s ability to provide financial assistance and rebuild communities has previously helped maintain support among its Lebanese constituents.
After its 2006 war with Israel, the group quickly distributed cash payments to affected families and helped rebuild parts of southern Beirut, its main stronghold.
There has been little sign of similar reconstruction following the latest fighting.
Lebanese Prime Minister Nawaf Salam said last month that rebuilding from the two wars since 2024 could cost more than $27 billion.
The sources did not provide details on how the reported $200 million reached Lebanon.
One source said it had become increasingly difficult for Hezbollah to move money through financial companies that previously handled such transfers.
Companies in Iraq and Dubai were no longer available, while firms in Turkey were also facing pressure, the source said.
Despite the funding difficulties, Hezbollah had continued paying its fighters and the families of those killed in combat, the source added.
The war has taken a heavy toll on Lebanon’s Shi’ite Muslim community, which forms Hezbollah’s main support base.
Israel has destroyed villages across parts of southern Lebanon that it controls, saying the operations are intended to prevent Hezbollah attacks on northern Israel.
Lebanon’s health ministry says Israeli attacks have killed more than 4,300 people since March 2. The figures do not distinguish between combatants and civilians.
Hezbollah has not released figures for its war dead. Reuters reported on May 4 that several thousand Hezbollah fighters had been killed in the conflict.
Erizia Rubyjeana
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