The conflict between Israel and Hezbollah has been centered on the border area with Lebanon, unlike the rocket fire from Gaza Strip. Despite Tehran’s involvement, Hezbollah’s ability to launch volleys of dozens of rockets is not a surprise. Nasrallah, leader of Hezbollah, is aware of the impact of the Second Lebanon War on the memory and consciousness of the Lebanese people.
Lebanon is currently facing a severe economic crisis, with hyperinflation and citizens turning to cryptocurrency due to the constant erosion of the Lebanese pound. The ongoing fighting further worsens the economy, leading to potential recruitment of citizens from weaker strata into Hezbollah’s ranks.
The devastation in southern Lebanon has caused significant economic damage, affecting an agriculture-focused region and resulting in the evacuation of tens of thousands of people. This has had a ripple effect throughout Lebanon’s economy as a whole, as southern Lebanon is a major center for agricultural activity.
Hezbollah, a terrorist organization with state identity, holds political influence in the Lebanese government. The ongoing conflict with Hezbollah poses a concern for Lebanon’s successful tourism industry, which accounts for about 20% of its GDP. The potential for destruction amid continuous economic chaos is a major concern that highlights that this conflict is not yet at full scale war status. Efforts are being made towards a peaceful resolution and both sides may find motivation through economic consequences to achieve calm.