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U.S. Sanctions on Hezbollah… What’s at Stake for Lebanon?

  • Mon August 24 2026 10:40 am

International relations professor Amin Labbas said the U.S. decision to reclassify Hezbollah as an agent of Iran’s Quds Force could have significant implications for the way sanctions against the group are enforced, but stressed that the move does not alter Hezbollah’s legal status in Lebanon or turn it into an Iranian institution.

In an interview, Labbas said Washington’s aim is to broaden the sanctions regime by tying Hezbollah more closely to Iran’s financial and operational networks and targeting companies and banks with links to both Tehran and the group.

He warned that the sanctions could put additional pressure on Lebanon’s banking sector, complicate financial transfers and raise the risks for institutions dealing with entities linked to Hezbollah. Lebanese banks and companies, he said, could consequently adopt stricter measures to avoid falling foul of U.S. sanctions.

Labbas also pointed to the broader legal debate surrounding unilateral U.S. sanctions, arguing that Washington is seeking to influence the conduct of individuals and companies beyond its borders. He stressed that sanctions imposed by the UN Security Council under Chapter VII of the UN Charter are fundamentally different from unilateral measures imposed by individual states, as Security Council resolutions can impose binding obligations on UN member states.

While countries may reject unilateral U.S. sanctions, Labbas said the practical challenge lies in absorbing the economic cost of doing so while maintaining access to the U.S.-dominated global financial system.

Turning to tensions over the Strait of Hormuz, Labbas warned that any attempt to prevent Iran from allowing ships to navigate the waterway could further complicate the situation under international maritime law and the UN Charter. At the same time, he stressed that U.S. sanctions against Iran do not give Tehran the right to use force against another state or vessel.

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