War on Lebanon
An Israeli airstrike killed four people in the southern suburb of Beirut on Tuesday. Hezbollah officially mourned two of the Lebanese who were killed. Another Israeli strike targeted a building in Saida, killing three people, among them a Hamas commander. Israeli forces also struck a center for the Islamic Health Society in Naqoura, destroying the building and damaging an ambulance and a fire truck. The attacks on Beirut and Saida were condemned by President Aoun and Prime Minister Salam, who described them as a “blatant assault on Lebanese sovereignty and a clear violation of Resolution 1701.”
Israeli forces opened fire on the town of Odaisseh, injuring a man who was later hospitalized.
In a statement, Hezbollah condemned the “barbaric American-Israeli aggression” on Syria, Lebanon, Gaza, and Yemen accusing Israel of attempting to “subjugate the region and bring it to its knees.”
Prime Minister Salam informed representatives from border towns that reconstruction projects will initially target infrastructure and that plans are being finalized with the World Bank. LBCI reported that the World Bank is delaying a $250 million loan pending government appointments for the Council for Development and Reconstruction.
U.S. Middle East Envoy Morgan Ortagus arrived in Lebanon and met with President Aoun, Prime Minister Salam, Parliament Speaker Berri, and Army Commander Rodolphe Haikal. Issues discussed included Israeli withdrawal, the Syrian-Lebanese border, and economic reforms.
Salam Government
The Finance Ministry finalized a draft bank reform and restructuring law that will be discussed in the cabinet before being presented to the Parliament. The law includes methods to assess assets and liabilities, provisions regarding the liquidation of insolvent banks, a bail-in mechanism, and conditions for recapitalization1.
Minister of Social Affairs Hanine Sayed announced plans to expand the Aman cash transfer program to include 50,000 additional families, particularly “families displaced by Israeli aggression.”
In an interview, Foreign Minister Youssef Rajji stated that there are conditions on Lebanon to receive foreign aid, one of them being the “implementation of international resolutions.” Rajji called for the unconditional withdrawal of Israeli forces from Lebanon and dismissed normalization, saying it is “out of the question.” Rajji was accused of sexual harassment by a Moroccan woman dating back to his time in Rabat, a claim Rajji denies and has described as “unsubstantiated.”
Economy
A new rental reform law targeting old rental contracts2 went into effect this week. The new law will raise rents gradually over four years and allows the contracts to be fully canceled by 2029.
In his first address as the new Central Bank Governor, Karim Souaid declared that all deposits must be repaid gradually through “the BDL, banks, and the state assuming their responsibilities.” He also stressed that banks should either recapitalize or merge with other willing banks and announced that the central bank will complete audits and penalize those involved in financial crimes.
Lebanese exports to the U.S. will be hit by a 10% tariff due to global tariffs announced by U.S. President Trump.
Miscellaneous
Former Economy Minister Amin Salam’s brother was arrested in relation to the ongoing investigation of the minister on the charges of embezzlement and extortion.
A controversy emerged involving state-owned Télé Liban following journalist Zeinab Yassine's resignation. Yassine stepped down after the channel reportedly refused to permit her regular on-air appearances because she wore a hijab.3
Thousands of homes and business are under old contracts from before 1992. Due to inflation and currency devaluation, some renters pay very little (in some instances $10 a year) and owners are unable to sell these properties since prospective buyers cannot legally evict the renters.