US sanctions put pressure on Iran’s allies

Trump signs legislation expanding list of those who can be sanctioned for financing Hezbollah

Tehran spent $16b on Al Assad, proxies and it gives $700m a year to Hezbollah

Giant posters on the streets of Beirut’s southern Shiite suburbs display an armed Hezbollah fighter in uniform, holding the group’s yellow banner and Lebanon’s national flag, along with phone numbers where supporters can make donations to the Shiite guerrilla force.

Hezbollah’s calls for donations have intensified in past months as the group and its main backer Iran have come under increasing financial pressure under sanctions from the administration of US President Donald Trump.

On Thursday, Trump signed legislation imposing new sanctions against Hezbollah at a White House event marking the 35th anniversary of the Beirut barracks bombing that killed 241 Marines.

“We will target, disrupt and dismantle their operational and financing efforts, of which they have plenty and we will never forget what they did to our Marines in Beirut,” Trump said.

The legislation, known as the Hezbollah International Financing Prevention Amendments Act, expands the list of those who can be sanctioned for doing business with Hezbollah.

White House press secretary Sarah Sanders said in a statement that “these sanctions will target foreign persons and government agencies that knowingly assist or support Hezbollah, and Hezbollah-affiliated networks that engage in drug trafficking or other transnational crime”.

On October 15, US Attorney General Jeff Sessions had designated Hezbollah as one of five groups considered top transnational organised crime threats. Iran, facing its own financial crises, has also reportedly cut back on funding for Hezbollah and Shiite militias it supports in Iraq. Iran touts itself as the leader of the so-called “Axis of Resistance”, grouping the Syrian regime of Bashar Al Assad, Shiite militias in Iraq, Hezbollah in Lebanon and the Al Houthis in Yemen.

The US State Department said in July that Iran has spent more than $16 billion (Dh58.84 billion) since 2012, supporting Al Assad and its proxies in Iraq and in Yemen, and it also gives $700 million a year to Hezbollah. It has also given the Syrian government $4 billion in lines of credit, it says.

The group is taking measures to reduce its expenses, such as bringing down the number of fighters in Syria, especially now that Al Assad’s military has taken back greater territory from his opponents, Bayram told The Associated Press. But he said it was not cutting back on stipends for families, medical care and retirement payments.

Despite the tightening, the group hardly seems to be diminished from its status as the strongest fighting force in Lebanon. Even if other funding streams are under strain, Hezbollah can still count on public contributions.

Its patron Iran, meanwhile, is facing deep economic woes. Trump withdrew the US from the nuclear accord with Iran, although the United Nations has repeatedly acknowledged Tehran was living up to the terms of the deal. Trump said he wanted stricter terms to limit Iran’s ballistic missile programme.

Another ally of Iran, Al Houthis, are also preparing for difficult times, especially as the Saudi-led coalition besieges the port of Hodeida. The rebels have sharply increased taxes on merchants and businesses.