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Israel Vows to Remain in Southern Lebanon as Hezbollah Expects Cash Infusion From Trump’s Iran Deal

Ailin Vilches Arguello

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Men carry Hezbollah flags while riding on two wheelers, at the entrance of Beirut’s southern suburbs, in Lebanon, Nov. 27, 2024. Photo: REUTERS/Thaier Al-Sudani

Israel has vowed not to withdraw from southern Lebanon, even as the newly signed US-Iran memorandum of understanding reshapes regional dynamics and declares a “termination of military operations” in the country, with Hezbollah expecting a sharp rise in political leverage and a significant boost in funding.

On Thursday, Israeli Prime Minister Benjamin Netanyahu said that while Israel values its close partnership with the United States, the country is determined to secure the safety of communities along its northern border amid the persistent and escalating threat posed by the Iran-backed Lebanese terrorist group Hezbollah.

“The struggle is not over yet and additional challenges still lie ahead,” Netanyahu said during a dedication ceremony of Route 60. 

“We will restore security to the north,” he continued. “That means maintaining the security zone in southern Lebanon and remaining there for as long as Israel’s security requires it. This buffer zone separates Hezbollah terrorists from our citizens and our homes.”

The United States and Iran digitally signed a memorandum of understanding on Wednesday, bringing the agreement into immediate effect and formally launching a process aimed at ending the war.

The 14-point memorandum calls for an immediate and permanent end to the war across all fronts, including Lebanon, with both sides pledging not to carry out hostile actions, threaten force, or interfere in each other’s internal affairs.

In Lebanon, Israel has been fighting the Iran-backed terrorist group, which opened fire on the Jewish state in early March, days after the joint US-Israeli military campaign began against the Iranian regime.

For weeks now, Israeli and Lebanese officials have been engaged in US-mediated efforts to end the conflict, with the next round of direct talks scheduled to take place in Washington next week.

US President Donald Trump has sharply criticized Israel’s military campaign against Hezbollah, further straining relations between the two longtime allies.

“I think we can act a little more moderately regarding Lebanon. Bibi and I have differences of opinion on the issue — maybe we shouldn’t knock down a building every time someone from Hezbollah enters it,” Trump said this week during the G7 summit in France.

“Israel could have done a better job on the issue of Hezbollah. I’m not saying they shouldn’t defend themselves — but they certainly could have done a better job on the issue,” he continued. “There are people there living their lives, and buildings are collapsing on them or right next to them. Would you want to live there? It’s so unfair, especially in Beirut.”

Hezbollah notoriously exploits civilian sites across Lebanon to house its weapons and operation centers.

As of now, the Israeli military remains deployed along the Yellow Line in southern Lebanon and is expected to stay there for at least the next 60 days, as Tehran and Washington negotiate a final agreement.

Challenging the newly signed US-Iran pact, Israel published a map on Thursday outlining an expanded military control zone in southern Lebanon, reaching toward the Hezbollah stronghold of Nabatieh north of the Litani River, with Israeli officials warning they do not rule out carrying out attacks beyond the designated area if necessary.

Even with the US-Iran ceasefire in place, Hezbollah has continued attacking Israeli positions in southern Lebanon this week, including with explosive drones that have killed and wounded Israeli troops.

In a televised address on Wednesday, Hezbollah leader Naim Qassem hailed the memorandum of understanding as a “great victory,” describing it as a “turning point” for Lebanon.

“No yellow zones, ​no red zones, and no green zones. Israel must leave, and it will leave,” the terrorist leader said.

According to Qassem, the group has received assurances from Iran that Israeli forces will be withdrawn from Lebanon in the next phase of Tehran’s talks with Washington, with the pullout expected to stem from continued diplomacy following the signing of the memorandum rather than being a precondition for it.

“There will be no nuclear deal between Iran and the United States unless the Israelis withdraw,” he said.

The Iranian proxy also expects to receive a major political and financial boost in Lebanon, with Tehran pledging increased funding once US sanctions are eased and frozen Iranian assets begin to be released under the terms of the agreement.

However, a US official said Washington had told Iran that “funds will not be unfrozen if they are going to any terror organization.”

“The MOU also incentivizes Iran to keep proxy groups in check, as if they fail to do so, they will be unable to access any benefits of the agreement,” the official said.

According to the US Treasury Department, Iran continued financing Hezbollah despite years of sweeping US sanctions, transferring roughly $1 billion to the group during the first 10 months of 2025.

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