Key Takeaways

• The truce between Israel and Hezbollah has largely held since June 20, even as military exchanges between the United States (US) and Iran, along with their respective allies, have escalated across the region. Israeli military operations continued throughout July in southern Lebanon, albeit at significantly lower pace compared to March through late June and within a far more geographically limited area. 
• The main diplomatic track for resolving the conflict in Lebanon is the US-brokered June 26 Trilateral Framework, featuring a “pilot zones” initiative under which Israeli forces withdraw from designated areas and the Lebanese Armed Forces (LAF) deploy to prevent Hezbollah from re-establishing an armed presence. 
• President Joseph Aoun visited Washington to meet with US officials concerning the truce in Lebanon, Hezbollah disarmament, support for the LAF, and post-conflict recovery. The visit drew a range of reactions in Lebanon, with some political figures hailing it as a step toward Israeli withdrawal, aid mobilization, and economic relief, while Hezbollah declared it a failure. Speaker of Parliament Nabih Berri has adopted a more nuanced stance, backing an end to the war and LAF deployment in the south while publicly rejecting direct talks with Israel.
• Lebanon’s draft Media Law could mark a major step toward greater protection for journalists, including decriminalizing defamation, banning pre-trial detention for journalists, and creating an independent media regulator. Yet, the draft faces considerable criticism, with many arguing that provisions undermine its reformist intent, including one that could see journalists face criminal charges over “false news”. 
• Parliament’s Finance and Budget Committee approved several articles of the Law on Bank Resolution and Restructuring, though its implementation is contingent on the government also passing the Financial Stabilization and Deposits Repayment Act, which remains under International Monetary Fund review. Doubts remain over the feasibility of Lebanon’s financial recovery plan, given the government’s inability to fund its share of recovery and the estimated 2.3 billion US dollars that will be needed to recapitalize the country’s banks.
• The Council of Ministers suspended Decree 3214, which imposes a 1–3% environmental tax on imported goods that generate solid waste under the “polluter pays” principle. The government cited concerns that importers, wholesalers, and retailers might use the environmental fees as a pretext for arbitrary price increases. 
• Parliament passed the Fisheries and Aquaculture Law on July 17, opening the fisheries and aquaculture sectors to foreign investment and permitting foreign vessels to fish in Lebanese waters. While the ministry framed the law as protecting small-scale fishers, unions warned that its provisions and apparent loopholes could enable monopolization. Dubbing it a “disguised privatization”, fishers have petitioned for amendments and threatened protests.
• In July, several regions coped with water shortages, including a multi-day shutdown of Beirut’s Dbayeh pipeline, twice-weekly cuts in Tripoli, and reduced supply in southern Lebanon. With the public water system unable to meet demand, many households have turned to costly, unregulated private water tankers, which researchers warn carry contamination risks.

By Crisis Analytics Team, Mercy Corps Lebanon