The heavily armed Hezbollah, an ally of Iran, is a main backer of Diab's cabinet, which took office last month after efforts failed to strike a deal with Saad al-Hariri, a traditional Western ally.

Gulf Arab states had long channeled funds into Lebanon. But now, alarmed by the rising influence of Hezbollah, Lebanon's rich neighbors appear loathe to help it out of an unprecedented economic and financial crisis.

The crisis came to a head last year as slowing capital inflows led to a liquidity crunch and protests erupted against the ruling elite.

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