The US Treasury Department has frozen the US assets of two Venezuelan nationals for alleged links with the radical Islamist group, Hezbollah.

The men include one of the country's official representatives in Lebanon.

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The other man, Fawzi Kan'an, rejected the accusations as baseless in a BBC interview.

Mr Kan'an operates two travel agencies in Caracas that have also been blacklisted by the US.

The latest move also prohibits Americans from doing business with the two men.

The move is likely to add to the existing rift between the Bush Administration and the government of Venezuelan President Hugo Chavez, correspondents say.

(BBC)

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