Hezbollah has been grappling with acute financial strains, US demands for its disarmament, and diminished political clout since a new cabinet took office in February with US support.

In the circular, dated Monday and reviewed by Reuters, Banque du Liban prohibited all licensed financial institutions in Lebanon from dealing directly or indirectly with unlicensed entities and listed Hezbollah's Al-Qard Al-Hassan as an example.

Arms have been central to Hezbollah's doctrine since it was founded by Iran's Islamic Revolutionary Guard Corps to fight Israeli forces who invaded Lebanon in 1982, at the height of the 1975-1990 Lebanese civil war. Tensions over the Shi'ite Muslim group's arsenal sparked another, brief civil conflict in 2008.

Hezbollah stands at a critical juncture as it decides whether to disarm and preserve a political role in Lebanon or risk renewed war with Israel

A Lebanese A-29 Super Tucano student pilot and a U.S. instructor pilot train in 2017 at Moody Air Force Base, Ga. The State Department approved a $100 million sale to Lebanon on July 11, 2025, for delivery of parts, equipment and logistical support for the country's Super Tucano planes. (Zachary Wolf/U.S. Air Force)

For decades, Lebanon has been torn apart by internal division and external conflict. There may currently be a narrow window for a different future.

BEIRUT -- A U.S. envoy said Monday he was satisfied with the Lebanese government’s response to a proposal to disarm the militant Hezbollah group, adding that Washington is ready to help the small crisis-hit nation emerge from its long-running political and economic crisis.

U.S. Envoy Thomas Barrack welcomes Lebanon's response to proposal calling for Hezbollah disarmament within four months, suggesting potential peace talks with Israel

U.S. special envoy Thomas Barrack said Monday he was "unbelievably satisfied" with Lebanon's response to Washington's proposals to disarm Hezbollah.