Vehicles carrying refugees from southern Lebanon are slowed by traffic on the outbound road from Beirut after a ceasefire between Israel and Hezbollah. Billboards once featuring Hezbollah propaganda now showcase western brands. Despite significant political power, Hezbollah faces financial challenges and increased isolation outside of Lebanon’s Shia population.

Hezbollah relies on international financial networks for revenue, including smuggling, money laundering, and drug trafficking. Lebanon’s cash-based economy allows Hezbollah to fund its activities and evade sanctions. Pressure from the U.S. government aims to crack down on Hezbollah’s illicit financial activities, including increased scrutiny at the Lebanese airport.

Lebanon’s central bank banned financial dealings with Al-Qard al-Hasan, a Hezbollah-linked entity, disrupting the group’s funding operations. The Lebanese government has taken control of the Beirut airport, detaining smugglers and implementing surveillance technology. Pressure mounts on Hezbollah’s financial operations as international scrutiny increases.

Calls to dismantle Hezbollah’s power grow as Lebanon seeks international aid and crackdowns on the group’s independence. Despite challenges, the Lebanese government aims to limit Hezbollah’s influence and weapons. A combination of incentives and pressure is needed to weaken Hezbollah’s grip on Lebanon, with a focus on international diplomacy and financial restrictions.

Read more at CNBC: Can Hezbollah’s shadow economy be dismantled?