Israel strikes Hezbollah-linked Lebanese bank

[MIDDLE EAST] The Israel Defense Forces (IDF) have launched a series of targeted airstrikes against Al-Qard Al-Hassan Association, a financial institution closely linked to Hezbollah in Lebanon. This move marks a new phase in Israel's strategy to undermine the Iran-backed militant group's operations and support base.

The Target: Al-Qard Al-Hassan Association

Al-Qard Al-Hassan, which translates to "the benevolent loan" in Arabic, is a quasi-banking network that has been operating in Lebanon for four decades. While it presents itself as a non-profit charity, both Israel and the United States have long accused it of being a financial front for Hezbollah's activities3.

The institution offers various financial services, including:

• Interest-free loans
• Gold-backed credit
• Savings accounts

These services have made Al-Qard Al-Hassan particularly popular among Lebanon's Shiite community, especially during the country's recent financial crisis3.

Israel's Strategic Objectives

The Israeli military's decision to target Al-Qard Al-Hassan branches across Lebanon is part of a broader strategy to disrupt Hezbollah's financial infrastructure. Israeli officials claim that this institution plays a crucial role in:

• Funding Hezbollah's armed wing
• Purchasing weapons
• Compensating Hezbollah fighters

IDF spokesperson Rear Admiral Daniel Hagari stated, "We will target multiple sites in the upcoming hours and more throughout the night," emphasizing Israel's determination to expose how Iran finances Hezbollah's activities through civilian entities.

The Impact on Lebanese Civilians

The airstrikes have had a significant impact on Lebanese civilians, particularly in Beirut and its surrounding areas. Many residents were forced to evacuate their homes abruptly following IDF warnings. The attacks have caused widespread panic and fear, with explosions reported in various parts of the country, including the southern suburbs of Beirut.

Hussein Hamieh, a displaced Lebanese civilian, expressed his anger and resilience: "I had to flee because we are dealing with a merciless enemy. They fire rockets at us, I was forced to leave my home. We will win, and as long as we live in our country, we will have victory."

International Reactions and Sanctions

The United States has long imposed sanctions on Al-Qard Al-Hassan, alleging that it manages finances for Hezbollah. The U.S. Treasury designated it as a facade used by Hezbollah to oversee its financial operations and gain access to the international financial system.

U.S. Secretary of State Antony Blinken commented on the situation, saying, "We are deeply concerned about the escalation of violence in the region. We urge all parties to exercise restraint and prioritize civilian safety."

The Broader Context of the Israel-Hezbollah Conflict

This latest development comes amidst heightened tensions between Israel and Hezbollah. The conflict reignited following Hamas's attack on southern Israel on October 7, 2023, which resulted in approximately 1,200 deaths and 250 hostages. Since then, Hezbollah has launched numerous attacks on Israeli military positions along the Lebanon-Israel border, claiming solidarity with Hamas.

Israeli Prime Minister Benjamin Netanyahu has vowed to make Iran pay for its support of Hezbollah and other militant groups in the region. In response to a recent drone attack on his private residence, Netanyahu stated, "The attempt by Iran's proxy Hezbollah to assassinate me and my wife today was a grave mistake."

The Role of Iran and Regional Implications

The conflict between Israel and Hezbollah is intrinsically linked to Iran's influence in the region. Hezbollah receives significant funding and support from the Iranian government, which has led Israel to target not only Hezbollah's military capabilities but also its financial networks.

Israeli Foreign Minister Israel Katz affirmed that military actions against Hezbollah would persist, stating, "We will continue to strike the Iranian proxy until it is dismantled."

Humanitarian Concerns and Civilian Impact

The ongoing conflict has taken a severe toll on civilians on both sides of the border. In Lebanon, the Health Ministry reported 2,464 deaths since the conflict reignited last October, with many casualties occurring in the southern regions near Israel's border. In northern Israel, government statistics indicate 59 deaths and 569 injuries during the same period.

The United Nations Interim Force in Lebanon (UNIFIL) has accused the IDF of intentionally damaging UN property, highlighting the complex nature of the conflict and its impact on international peacekeeping efforts.

Diplomatic Efforts and Future Prospects

As the conflict escalates, diplomatic efforts to ease tensions continue. U.S. envoy Amos Hochstein has been assigned by the White House to mediate the Israel-Lebanon conflict. However, the effectiveness of these diplomatic initiatives remains uncertain in the face of ongoing military operations.

The Israeli strikes on Al-Qard Al-Hassan represent a significant shift in tactics, targeting Hezbollah's economic base and potentially impacting its popular support among Lebanese civilians who rely on its financial services. This strategy aims to create a rift between Hezbollah and its supporters, as noted by an anonymous senior Israeli official.

The Israeli airstrikes on Al-Qard Al-Hassan mark a new chapter in the long-standing conflict between Israel and Hezbollah. By targeting the financial infrastructure that supports Hezbollah's operations, Israel aims to weaken the militant group's capabilities and influence in Lebanon. However, this strategy also risks further destabilizing Lebanon's fragile economy and exacerbating humanitarian concerns.

As the situation continues to evolve, the international community watches closely, hoping for a de-escalation of tensions and a peaceful resolution to the conflict. The coming weeks and months will be crucial in determining whether this new approach will lead to lasting change or further entrench the cycle of violence in the region.