Hezbollah has been grappling with acute financial strains, US demands for its disarmament, and diminished political clout since a new cabinet took office in February with US support.

In the circular, dated Monday and reviewed by Reuters, Banque du Liban prohibited all licensed financial institutions in Lebanon from dealing directly or indirectly with unlicensed entities and listed Hezbollah's Al-Qard Al-Hassan as an example.