New U.S. Sanctions against Hezbollah risk extending Lebanon's economic and political crises by undercutting French efforts to broker Lebanese domestic political and economic reforms, which require the Iran-backed militant group and political party's support. On Sept. 8, the United States issued sanctions against two Lebanese politicians for engaging in corruption and providing "material support" to Hezbollah. The policy change appears to expand U.S. actions in recent years against the group, which has long been a target of Washington's efforts to counter Iranian proxies and allies throughout the Middle East. This is the first time the United States has targeted individuals with second-order connections to the group, broadening its scope of sanctions in ways that will impact a larger cross-section of Lebanese politicians across all major factions. The widening net will also create regulatory barriers that are likely to further spook investors and international institutions, including the International Monetary Fund.

• Since 2017, Washington has sanctioned over 90 entities in Lebanon with connections to the group. All of those entities, however, had direct links to Hezbollah, which helped limit the impact on average Lebanese citizens. 
• The two individuals sanctioned on Sept. 9, however, lack the direct affiliations with Hezbollah that characterized previous U.S. sanction designations, and were instead accused by the U.S. Treasury Department of using their positions to help Hezbollah retain its position of power.
• Lebanon is battling an increasingly dire financial crisis, with a fragile and fast-depreciating currency.

The timing of the U.S. sanctions during Lebanon's post-Beirut disaster political transition suggests that Washington is maneuvering to keep Hezbollah-affiliated officials from key leadership roles in the next government. However, breaking Hezbollah's grip over Lebanese government formation will prove difficult, as the appointment of former Prime Minister Hassan Diab in January demonstrated the group's power to form new Lebanese governments without including its sectarian opponents. Unless new elections reduce Hezbollah's electoral numbers, there are no other political groups in Lebanon currently strong enough to exclude Hezbollah or Amal, one of its major allies, from a future government.

• Lebanon's last government under Diab resigned on Aug. 10 in the wake of the port explosion in Beirut and the subsequent surge of public anger. 
• The country is now facing a mid-September deadline to form its next government amid pressure from its Western partners (such as France and the United States), as well as Lebanese citizens eager to see a new administration without the old party affiliations.

France and other EU countries recognize that Washington’s approach and objective aren’t realistic, given Hezbollah’s strong position in Beirut. The lack of unified external pressure from its Western partners presents the Lebanese government with conflicting goals, and also makes it easier for Beirut to evade and delay reforms — thus prolonging the country's ongoing financial crisis, along with the timeline by which its next government will likely be formed.

• The U.S. ambassador to Lebanon and his staff have met with civil society and protest leaders in recent weeks, while notably avoiding meeting with any current Lebanese politicians. EU leaders from countries such as France and Italy, on the other hand, have met with both civil society leaders and politicians, including those even affiliated with Hezbollah, in their attempt to shepherd in a new, more reformist government using existing factions and political groupings.
• All of Lebanon's Western partners say their efforts to mediate the government's formation process are aimed at rooting out corruption.