Snubbed by Gulf, Lebanon's PM Diab hosts Iranian official - Reuters

Snubbed by Gulf, Lebanon's PM Diab hosts Iranian official - Reuters:

Lebanese Prime Minister Hassan Diab, who is getting the cold shoulder from Gulf Arab states, on Monday met Iran’s parliament speaker, the first senior foreign official to visit since Diab’s government took office.

Gulf states had long channeled funds to Beirut but have grown alarmed by the rising clout of Iran’s ally Hezbollah. Lebanon’s rich Gulf neighbors now appear loathe to help it out of an unprecedented economic and financial crisis.

The heavily armed Hezbollah backed Diab’s cabinet after efforts failed to strike a deal with Saad al-Hariri, a traditional Western ally who stayed out of the new government.

The economic crisis came to a head last year as slowing capital inflows led to a liquidity crunch and protests erupted against the ruling elite. Banks are curbing access to cash, the Lebanese pound has slumped and inflation has spiked.