Iran supports the terrorist organization to the tune of about $200 million in direct aid and more in military hardware and training.

But the Iranians are having their own problems with sanctions. And to make matters worse for the terrorists, the uprising in Syria has cut off the flow of money from there.

YNet News quotes the French newspaper Le Figaro :

According to the article, which was based on information obtained by French intelligence agencies, the civil uprising against President Bashar Assad in Syria has significantly reduced the flow of money to the Lebanese terror group.

Moreover, the report said, Iran has recently cut its financial aid to Hezbollah by 25% due in part to the international sanctions imposed on the Islamic Republic over its nuclear program.

Le Figaro said the financial crisis has led some Hezbollah terrorists to deal drugs in north Lebanon. Just last week US prosecutors indicted a Lebanese national who they said led a massive international drug smuggling ring with links to Hezbollah.

The US Treasury and the FBI have banned American organizations from donating to Hezbollah, which is designated under US law as a terrorist organization.

Last month Nasrallah claimed Hezbollah had unraveled a web of CIA informants and officers in Iran and Lebanon. According to Le Figaro's report, the network caused significant damage to the Shiite group.

Hezbollah's financial woes are also the result of corruption, the report said. According to Le Figaro, the terror group's investment manager had embezzled close to $1.6 billion.

This certainly explains the increase in activity by Hezb'allah with the drug cartels. But the terrorists run the government of Lebanon now and if they can't embezzle a few tens of millions from the Lebanese taxpayers, they would be poor terrorists indeed.