UAE says it dismantled 'terrorist network' funded by Iran, Hezbollah

March 20 (Reuters) - United Arab Emirates security authorities have dismantled a "terrorist network" allegedly funded and operated by Lebanon's Hezbollah and its backer Iran, arresting its members, the state news agency said on Friday.

It said the network, which had been operating under a fictitious commercial cover, was involved in "money laundering, financing terrorism and threatening national security", and sought to undermine financial stability.

Lebanon's Foreign Ministry strongly condemned what it described as a "terrorist plot" against the UAE, denounced Hezbollah's alleged involvement, and offered cooperation by Lebanese authorities to ensure those responsible are held accountable.

In a post on X, it also reiterated a Lebanese government decision issued earlier this month banning Hezbollah's military and security activities.

There was no immediate comment from Hezbollah or Iran.

The development follows a separate incident in Kuwait, where authorities said on Monday they had uncovered a group linked to Hezbollah that was planning acts aimed at undermining national security. They seized weapons, ammunition, and drones.

Hezbollah denied the Kuwaiti allegations in a statement on Tuesday, calling them baseless and reiterating that it has no presence or operational networks in Kuwait.

Since the outbreak of the U.S.-Israeli war on Iran on February 28, Tehran has launched large-scale missile and drone attacks across the Gulf.

Emirati officials say hundreds of strikes have been directed at the country, hitting sites including oil facilities, ports, and areas near major urban centers.

The UAE has long opposed political Islamist groups. Iran-backed Hezbollah entered the conflict on March 2, firing at Israel from Lebanon and prompting Israel to launch extensive strikes across Lebanon.