There is a generation gap in Hezbollah. Hezbollah began as a Shiite radical group inspired by the Iranian Islamic Revolution. In that context, Hezbollah represented a militant, nonsecular alternative to the Nasserite Fatah, Popular Front for the Liberation of Palestine, and other groups that took their bearing from Pan-Arabism rather than Islam. Hezbollah split the Shiite community in Lebanon -- which was against Sunnis and Christians -- but most of all, engaged the Israelis. It made a powerful claim that the Palestinian movement had no future while it remained fundamentally secular and while its religious alternatives derived from the conservative Arab monarchies. More than anyone, it was Hezbollah that introduced Islamist suicide bombings.
Hezbollah had a split personality, however; it was supported by two very different states. Iran was radically Islamist. Syria, much closer and a major power in Lebanon, was secular and socialist. They shared an anti-Zionist ideology, but beyond that, not much. Moreover, the Syrians viewed the Palestinian claim for a state with a jaundiced eye. Palestine was, from their point of view, part of the Ottoman Empire's Syrian province, divided by the British and French. Syria wanted to destroy Israel, but not necessarily to create a Palestinian state.
From Syria's point of view, the real issue was the future of Lebanon, which it wanted to reabsorb into Syria, or at the very least economically exploit. The Syrians intervened in Lebanon against the Palestine Liberation Organization and on the side of some Christian elements. Their goal was much less ideological than political and economic. They saw Hezbollah as a tool in their fight with Yasser Arafat and for domination of Syria.
Hezbollah strategically was aligned with Iran. Tactically, it had to align itself with Syria, since the Syrians dominated Lebanon. That meant that when Syria wanted tension with Israel, Hezbollah provided it, and when Syria wanted things to quiet down, Hezbollah cooled it. Meanwhile the leadership of Hezbollah, aligned with the Syrians, was in a position to prosper, particular after the Israeli withdrawal from Lebanon.
That withdrawal involved a basic, quiet agreement between Syria and Israel. Israel accepted Syrian domination of Lebanon. In return, Syria was expected to maintain a security regime that controlled Hezbollah. Attacks against Israel had to be kept within certain acceptable limits. Syria, having far less interest in Israel than in Lebanon, saw this as an opportunity to achieve its ends. Israel saw Syrian domination under these terms as a stabilizing force.
Destabilization
Two things converged to destabilize this situation. The emergence of Hamas as a major force among the Palestinians meant the Palestinian polity was being redefined. Even before the elections catapulted Hamas into a leadership role, it was clear that the Fatah-dominated government of Arafat was collapsing. Everything was up for grabs. That meant that either Hezbollah made a move or would be permanently a Lebanese organization. It had to show it was willing to take risks

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