WASHINGTON — The Trump administration formally classified Hezbollah as a direct arm of Iran's Islamic new Guard Corps, a reclassification that expands U.S. sanctions against the militant group and signals an intensified pressure campaign against Tehran.
President Trump signed the executive order this week. Treasury Secretary Steven Mnuchin announced the decision, saying it would strengthen financial sanctions against Hezbollah's global operations.
The reclassification allows Treasury to apply existing IRGC sanctions more broadly to Hezbollah's financial networks worldwide. The move targets the group's funding streams in the Middle East and beyond, according to senior Treasury officials.
The shift fulfills a yearslong push by Republican hawks in Congress. Senator Ted Cruz of Texas has repeatedly called for this specific reclassification as a way to disrupt Iranian regional influence. The administration's move aligns with its "maximum pressure" strategy against Iran since the IRGC was designated a foreign terrorist organization in April 2019.
The Treasury Department's Office of Foreign Assets Control plans to issue implementation guidance next month. Banks and financial institutions will need to update compliance protocols to avoid inadvertent transactions with Hezbollah affiliates.
The reclassification will complicate relations with European allies, many of whom distinguish between Hezbollah's political wing and its military operations. The State Department will coordinate with international partners on the new policy, but friction is likely given differing assessments of Hezbollah's structure and function across the Atlantic.
