Iran has provided Hezbollah with $200 million to support Lebanese families displaced by this year’s war with Israel, two people with direct knowledge of the transfer said, marking the group’s first major aid effort for supporters hit hardest by the conflict.

Hezbollah received the funds last month despite mounting U.S. economic pressure on Iran and growing obstacles to moving money to Tehran’s Lebanese ally, the sources said.

Intermediaries handling the transfer charged a 20% fee because of the risks involved in dealing with Hezbollah, according to the sources. One said the rate was four times the usual fee.

A Hezbollah official, asked for comment, confirmed that funds had been secured and said a distribution plan would be announced in the coming days, but did not identify the source of the money.

Iran’s Foreign Ministry, its permanent mission in Geneva, the U.S. Treasury Department and the Lebanese government did not immediately respond to requests for comment.

Israel’s bombardment and ground offensive in Lebanon displaced hundreds of thousands of people, many from Hezbollah’s Shiite support base, after the Iran-backed group entered the regional conflict on March 2.

Hezbollah, founded with support from Iran’s Revolutionary Guards in 1982, has suffered heavy Israeli blows during two wars since 2024. The United States designates the group as a terrorist organization.

Many of those displaced have received little or no assistance from Hezbollah so far.

Hezbollah plans to use the funds to provide an initial $3,000 payment to each eligible family, with priority given to people whose villages have been destroyed or remain inaccessible because of Israeli occupation, the sources said.

About 50,000 families fall into those categories, according to one of the sources.

Iran has continued supporting Hezbollah despite years of U.S. sanctions. Tehran transferred $1 billion to the group during the first 10 months of 2025, according to the U.S. Treasury Department.

Tehran has not publicly acknowledged financing Hezbollah. Iran’s support for allied armed groups across the region has previously fueled domestic criticism, making the issue particularly sensitive as economic hardship deepens inside the country.

Iran had pledged additional funding for Hezbollah after Tehran reached an interim agreement with Washington in June that allowed it to sell oil. The agreement collapsed in July.

Washington has since intensified economic pressure on Tehran, tightening sanctions and imposing a naval blockade aimed at restricting Iranian oil exports.

Hezbollah leader Naim Qassem said last month that the group would soon contribute to a project to house thousands of people displaced by the war, using "available resources and donations.” He did not provide further details.

Hezbollah’s ability to finance social services and postwar assistance has helped sustain support for the group in the past. After its 2006 war with Israel, Hezbollah quickly distributed cash to affected families and helped rebuild Beirut’s southern suburbs, one of its main strongholds.

This time, however, reconstruction has been slow. Lebanese Prime Minister Nawaf Salam said last month that rebuilding after the two wars since 2024 could cost more than $27 billion.

The two sources did not disclose how the $200 million reached Lebanon.

One said Hezbollah was finding it increasingly difficult to transfer funds through financial companies that had previously handled such transactions. Firms in Iraq and Dubai were no longer viable options, while similar channels in Türkiye were also coming under pressure, the source said.

Hezbollah’s opponents increasingly view its access to money as crucial to the group’s ability to operate, the source added.

Despite the funding difficulties, Hezbollah has continued paying its fighters and providing money to the families of members killed in combat, according to the same source.

The conflict has exacted a heavy toll on Lebanon’s Shiite community, from which Hezbollah draws much of its support. Israel has destroyed villages across areas it seized in southern Lebanon, saying its operations are intended to protect northern Israel from Hezbollah attacks.

Israeli attacks in Lebanon have killed more than 4,300 people since March 2, according to Lebanon’s Health Ministry. The ministry does not distinguish between civilians and combatants in its toll.

Hezbollah has not disclosed how many of its fighters have been killed. Reuters reported on May 4 that several thousand Hezbollah fighters had died in the conflict.