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Jesse Watters reacted to a report that former President Barack Obama gave a "free pass" to Hezbollah's drug trafficking operations - some of which affected the U.S. directly - to ensure the Iran nuclear deal would come to fruition.

As reported:

An elaborate campaign led by the Drug Enforcement Administration, known as Project Cassandra, reportedly targeted the Lebanese militant group’s criminal activities. But by tossing a string of roadblocks holding back the project, Obama administration officials helped allow the 35-year-old anti-Israel criminal enterprise to evolve into a major global security threat bankrolling terrorist and military operations, the report added.

“This was a policy decision, it was a systematic decision,” David Asher, who helped establish Project Cassandra as a Defense Department illicit finance analyst in 2008, told Politico. “They serially ripped apart this entire effort that was very well supported and resourced, and it was done from the top down.”

When Project Cassandra leaders, who were working out of a DEA’s Counter facility in Chantilly, Virginia, sought an OK for some significant investigations, prosecutions, arrests and financial sanctions, Justice and Treasury Department officials delayed, hindered or rejected their requests, according to Politico.

The red tape halted Project Cassandra’s efforts to curtail top Hezbollah operatives, including one of the world’s biggest cocaine traffickers who was also supplying conventional and chemical weapons used by Syrian dictator Bashar al-Assad against his own citizens. That operative's code name: the “Ghost.”

Jesse Watters noted that, according to the report, the Obama administration acted passively following the apprehension of one of the major players in the arms sales.

The initial Politico report said Obama failed to "apply pressure" to extradite Lebanese arms dealer Ali Fayad - a suspected top Hezbollah operative - to the United States.

Fayad was arrested in Prague, Czech Republic and Watters said Russian President Vladimir Putin insisted that he not be extradited to Washington.

Watters said Obama consented, and that now Fayad is believed to be selling Russian artillery to the Syrian government.

"[Fayad is] Putin's favorite arms dealer," Watters said. "The Obama Justice Department let him off the hook."

Watters added that another Hezbollah operative, known as "The Ghost," was a "huge cocaine trafficker" who now is in the position of selling chemical weapons to al-Assad.

He said Katherine Bauer, an Obama administration official at the Department of Treasury, was captured on-record saying that counter operations "were tamped down for fear of rocking the boat with Iran and jeopardizing the nuclear deal."

Watch more above.

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