Washington 'vetoes' Gulf funds for Lebanon reconstruction: Report

The World Bank estimates Lebanon needs $11 billion for reconstruction and recovery due to the ongoing Israeli war on the country  

News Desk - The Cradle 

The US government has placed an “undeclared veto” on Gulf nations that offered financial support for the reconstruction of Lebanon until Israel's objectives in the country are met, according to diplomatic sources who spoke with Al-Akhbar.

Washington informed several Gulf states, including Qatar and Saudi Arabia, that no financial support should be given to Lebanon or Syria “at this stage,” in what the Lebanese daily describes as a “maximum pressure campaign aimed at removing any obstacle to a settlement that ends the state of conflict with Israel – particularly by dismantling Hezbollah’s weapons – regardless of the consequences for Lebanon.”

Other conditions for lifting the veto reportedly include the results of upcoming US-Iran nuclear talks and the repercussions of the escalating trade war with China.

“Trump’s team sees resolving [West Asian] conflicts, particularly by incorporating Lebanon into the Abraham Accords, as a way to lock the region into the US sphere of influence and limit China’s foothold,” the report states.

Al-Akhbar's sources said they believe the veto could be extended until next year's parliamentary elections, aiming to prevent Hezbollah and the Amal Movement “from securing all Shia seats in parliament.”

“There is an emerging US plan to block any financial aid to Lebanon before the 2026 parliamentary elections, with the expectation that maximum pressure will lead to a major political shift in parliament and push voters to punish Hezbollah for the war and economic collapse,” one of the sources is cited as saying.

Washington and Tel Aviv reportedly hope to “nominate” a new parliament speaker to replace Amal leader Nabih Berri. Nevertheless, the US-led scheme has faced pushback from France, as the Elysee Palace believes that “excluding any major group could destabilize the state.”

Following the signing of a one-sided ceasefire deal between Lebanon and Israel last year, Saudi Arabia, Qatar, Kuwait, and the UAE offered to help Beirut reconstruct.

Thursday's report comes as Lebanese President Joseph Aoun is set to visit Qatar and the UAE next week. Aoun met with Saudi leaders in Riyadh last month during a visit that left “no tangible financial outcomes.”

“Arab countries want to help Lebanon but won’t pay without results or risk upsetting the US. What matters more is what Trump will demand during his Gulf tour next month – and how to gather the trillions he wants amid economic strain and falling oil prices,” Al-Akhbar's sources stressed.