Hezbollah gold exchange under US sanctions

The United States (US) Department of the Treasury announced a new round of sanctions targeting individuals, companies, and financial networks allegedly linked to Hezbollah’s revenue-generating operations.

The measures, implemented through the Office of Foreign Assets Control (OFAC), aim to disrupt the group’s financial infrastructure by targeting mechanisms tied to Iranian support and the exploitation of Lebanon’s largely cash-based informal economy.

The decision reflects Washington’s continued effort to isolate Hezbollah financially while also raising broader questions about the implications for Lebanon’s fragile economic and financial environment.

Targeting gold trading and informal financial channels

Central to the Treasury’s announcement was the designation of Jood SARL, a Lebanese gold exchange company accused of operating under the supervision of Al-Qard Al-Hassan Association (AQAH), a financial institution previously sanctioned by the US. According to OFAC, Jood allegedly played a role in converting Hezbollah’s gold reserves into usable funds to sustain the group’s activities.

US officials contend that AQAH operates beyond the scope of its official registration as a non-governmental organization licensed by Lebanon’s Ministry of Interior and Municipalities. American authorities argue that the organization functions as a parallel financial institution, providing services comparable to banking operations, including lending and asset management. Washington claims that following financial pressures in early 2025, Hezbollah allegedly directed AQAH to expand its funding channels by establishing a network of gold trading companies, with Jood emerging as a key component of this strategy.

OFAC further alleged that Jood expanded operations in several regions, including the southern suburbs of Beirut, the Bekaa Valley, and Nabatiyeh, areas where AQAH maintains a notable presence. The sanctions also targeted individuals linked to the company’s leadership, including figures accused by US authorities of overseeing or facilitating these financial operations.

International procurement and commodity shipping networks

In addition to the gold trading operations, the sanctions also focused on what US officials described as an international procurement and commodities shipping network allegedly connected to Hezbollah financiers operating across multiple countries. OFAC identified Iranian-based financial operative Ali Qasir as a central figure coordinating with associates in Russia, Turkey, Syria, and other jurisdictions.

According to the Treasury Department, the network allegedly facilitated arms procurement and revenue generation through the trade of commodities. One highlighted case involved the shipment of fertilizer from Iran to Turkey using falsified documentation that reportedly concealed the cargo’s origin. Several companies and shipping vessels were sanctioned for their alleged involvement in these transactions, including shipping firms and maritime operators connected to international transport routes.

The sanctions also extended to vessels linked to these operations, which were designated as blocked property under US counterterrorism authorities. American officials argue that such maritime networks play a significant role in circumventing sanctions and sustaining Hezbollah’s logistical and financial activities.

Legal framework and sanctions enforcement

The measures were imposed under Executive Order 13224 (2001), a US counterterrorism authority designed to block the assets of individuals and entities accused of supporting terrorist organizations. Hezbollah has been designated by the United States as both a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist (SDGT) for more than 2 decades.

As a result of the sanctions, any assets belonging to the designated entities that fall under US jurisdiction are frozen, and American individuals and institutions are prohibited from engaging in transactions with them. The measures also extend to entities owned or controlled by sanctioned individuals. Furthermore, foreign financial institutions that knowingly facilitate transactions involving these parties risk secondary sanctions, potentially restricting their access to the US financial system.

Regional and domestic implications

The sanctions come amid ongoing geopolitical tensions involving Hezbollah, Iran, and Israel, as well as Lebanon’s continuing economic crisis. US officials maintain that targeting Hezbollah’s financial infrastructure is intended to weaken the group’s operational capabilities while supporting Lebanon’s prospects for economic recovery and political stability.

However, the measures also highlight the complex reality of Lebanon’s financial landscape, where informal cash-based systems have expanded significantly following the collapse of the country’s banking sector in recent years. Such sanctions could have wider economic ripple effects, particularly regarding individuals that have relied on these alternative financial institutions.

In conclusion, the latest US sanctions underscore Washington’s ongoing strategy of disrupting Hezbollah’s financial networks through targeted economic measures. By focusing on gold trading operations, informal financial institutions, and international procurement networks, American authorities seek to limit the group’s ability to sustain its activities. While the sanctions reinforce international counterterrorism efforts, they also illustrate the intricate intersection between regional geopolitics, financial regulation, and Lebanon’s ongoing economic challenges. The long-term effectiveness of such measures will likely depend on international coordination, enforcement mechanisms, and Lebanon’s broader economic and institutional recovery.