Iran’s interim deal with the US looks set to bolster Hezbollah’s political and financial hand in Lebanon, with Tehran promising more funding for its ally once cash starts to flow, according to four sources familiar with ties between Tehran and the terror group.

A cash infusion to Hezbollah could help it recover from heavy wartime losses and deliver a setback to Israel, which dealt the Iran-backed terror group crushing blows in a 2024 war and has campaigned against sanctions relief for Tehran.

The US-Iranian memorandum of understanding (MOU), due to be signed on Friday, is expected to halt hostilities across all fronts, mediator Pakistan has said, although its terms have not been made public.

The halt to fighting — at Iran’s insistence — includes Lebanon, where Hezbollah fired at Israel in solidarity with Tehran on March 2, igniting an Israeli offensive into southern Lebanon, in a conflict that has unfolded in parallel to the wider US-Iran confrontation.

The situation in southern Lebanon remains volatile. Iran warned Israel on Tuesday to expect an Iranian military response if it did not stop attacks in the south, where Israel has said it will keep troops, and violence, albeit much reduced, has continued.

The ceasefire in Lebanon leaves Hezbollah politically emboldened after two years of setbacks, including the fall of Hezbollah’s Syrian ally Bashar al-Assad in December 2024.

It also corners Lebanon’s US-backed government, which failed in its own efforts to secure a broader ceasefire in face-to-face talks with Israeli officials in Washington over the past two months as a pathway to curbing Hezbollah’s attacks on Israel.

The attacks have disrupted the lives of tens of thousands of people in northern Israel who were repeatedly driven to seek safety in bomb shelters at all hours of the day and night, playing havoc with their daily lives. Many of those residents had evacuated their towns during a previous round of Hezbollah attacks, which began in October 2023 and came to a halt in November 2024.

The talks, which Israel has said are ultimately aimed at securing a full peace deal while Lebanon has said they are only focused on de-escalation, have faced an uphill battle since Hezbollah has vowed not to recognize or abide by any deal they yield, raising the prospect of a renewed civil war in Lebanon.

Hezbollah, a Shi’ite Muslim terror group, has been........

© The Times of Israel