War on Lebanon
Israeli forces targeted Beit Lif, Majdal Zoun, Brital, Abbasieh, Shmustar, Banaafoul, Al Rihan, Kfar Fila, Tebna, Sriri, Qaaqaaiyet El Snoubar, Wazzani, Deir El Zahrani, Yater, Ramia, and Kfarkela. An Israeli drone strike also killed a Nabatieh municipal employee while he was fixing a well. In total, at least three people were killed and five were injured.
Israeli forces performed land incursions into several areas in South Lebanon, digging trenches and setting up breastworks. The Lebanese Army later announced the removal of the fortifications along with UNIFIL.
In an interview with CNN, Prime Minister Nawaf Salam stated that “Israeli presence in Lebanon is a red line for everyone” and emphasized that Israel has not “honored its commitments” to completely withdraw from Lebanon1. When asked about peace and normalization with Israel, Salam stated that Lebanon is “committed to the Arab Peace Initiative” and that “normalization is the outcome of peace” based on the two-state solution.
A report from Amwaj claims a prisoner swap is being negotiated between Hezbollah, Iraq, and Israel that would involve freeing captured Lebanese citizens.
In an interview with Al-Quds Al-Arabi, Foreign Minister Youssef Rajji stated that Hezbollah “does not want to give up its weapons” describing the group as “illegitimate.” His statements drew criticism from Hezbollah MPs.
The Loyalty to the Resistance (Hezbollah) parliamentary bloc met with President Joseph Aoun, after which they praised the president and stated that the “space of understanding” between them is wide.
Economy
Local media reported a possible decision by Central Bank Governor Karim Souhaid that would force people who paid their loans via the “old LBP rate” after 2019 to repay the difference based on the current USD-LBP exchange rate2. Former Economy Minister Alain Hakim told Al-Arabiya that the decision, if taken, would only affect commercial loans and would not affect personal loans or mortgages.
A first official working session was held between the IMF and the Ministry of Finance this week. Finance Minister Yassin Jaber said that the meetings will conclude on June 5 and dismissed the possibility of income tax hikes.
Agriculture Minister Nizar Hani told Almodon that the government is working to form the Regulatory Authority for Cannabis Cultivation after years of delay. The law legalizing and regulating cannabis production for “medical and industrial uses” was passed in 2020 but has not been implemented as of May 2025.
The Central Bank issued a new circular aiming to regulate e-wallets by setting ceilings on transfers and account balances in addition to suspending any new licenses.
Economy Minister Amer Bisat met with Starlink Middle East head and discussed the activation of the company’s services in Lebanon.
Parliament
The Parliamentary Finance Committee approved a $250 million loan from the World Bank to fund electricity and renewable energy projects. A finance subcommittee met with the Finance and Economy Ministers along with the Central Bank Governor to discuss the proposed banking reform law.
The Public Health Committee discussed proposals to ease access for doctors and farmers to benefits from Social Security.
Government
The government announced an increase3 in monthly compensation for military personnel and retirees, to be funded by an increase in fuel prices. The decision to hike prices was met with backlash from several unions, with some describing it as a “malicious scheme to humiliate citizens.” The increase was also criticized by the Public Employee Association which called for “equality” between state employees.
The Cabinet approved a wide range of appointments in Ogero, the Council for Development and Reconstruction, and various ministries.
Minister of Information Paul Morcos signed an agreement with UNICEF for a $100,000 grant to “strengthen the role of the state media” and “improve media infrastructure.”
The Lebanese Judges Association issued a review with proposed changes and comments on the draft judicial reform law.
Syria
UNHCR announced the end of hospitalization and healthcare coverage for Syrian refugees in Lebanon due to reduced funding. Health Minister Rakan Nasreddine stated that the “international community” should work on finding alternative funding sources.
The Lebanese Army announced the closure of six illegal crossings on the Lebanese-Syrian border.
Legal Issues
State security officials arrested two port officials on charges of embezzling $42,000 from the public treasury.
Former minister Wiam Wahhab was sentenced to two months in prison and ordered to pay damages to Judge Ghada Abou Karroum on the charge of defamation. Wahhab denounced the decision and stated that he will appeal.
An arrest warrant, a third of its kind, has been issued against former Central Bank Governor Riad Salameh after a complaint filed against Salameh by businessman Talal Abou Ghazaleh.
Lebanon’s first minor rehabilitation center was opened this week in the Hadath area. The project was originally launched in 1999 in collaboration with the UNODC and is funded by the EU.
Miscellaneous
Mirna Murr won the election for head of the influential Federation of Metn Municipalities with 22 votes against Nicole Gemayel’s 11.
In the early years of the financial crisis, many bank clients paid their USD denominated loan with Lebanese Pounds based on the official exchange rate ($1=LBP1,500) while the black market rate reached multiple times that number($1=LBP89,500 at the time of writing this article). This was due to the absence of legislation on exchange rates and banks maintaining usage of the official exchange rate for deposits despite black market fluctuations.
Around $160 for active members, $140 for retired members