The World Bank forecasts that Lebanon’s economy will shrink by 6.4 percent in 2026 as the ongoing Israel-Hezbollah war severely disrupts the country’s recovery efforts. In a report released Friday, the bank cited a collapse in tourism, lower consumer spending, disrupted goods supply chains, heightened insecurity and prolonged displacement as major drivers of the projected contraction. Lebanese authorities say more than 4,300 people have been killed in Israeli air strikes and ground operations.

Lebanon has faced a severe financial crisis since 2019. Before the latest conflict, the World Bank’s preliminary estimate had suggested real GDP could grow by 4.2 percent in 2025, which would have been the country’s fastest economic growth since the financial crisis began. The bank also expects inflation to reach 17.5 percent this year, driven by supply disruptions, higher transport costs and rising oil prices, further reducing purchasing power.

World Bank Middle East director Dalia Khalifa said reforms must advance to restore confidence, preserve economic stability and secure financing for reconstruction and recovery. She highlighted banking-sector restructuring and public financial-management reform. Lebanon’s parliament last week approved amendments to a bank restructuring law, which the IMF praised as an important step. Lebanon is discussing economic assistance with the IMF, with talks set to resume in Beirut next month.

Israeli forces reportedly carried out heavy shelling and widespread destruction in several areas of southern Lebanon early Saturday, according to Lebanon’s National News Agency. The report, published on August 22, 2026, said artillery fire struck Al-Mansouri, areas near Beit al-Sayyad, and the outskirts of Majdal Zoun.

The agency said destruction occurred overnight across locations in the three towns and villages, asserting that no houses in the affected areas remained intact. Similar destruction was also reported in Haddatha, Beit Yahoun and Aita al-Jabal. Machine-gun fire was reported toward nearby valleys.

A correspondent also reported Israeli airstrikes near the Ali al-Tahir highlands in southern Lebanon. Israeli drones were reported flying continuously over towns and villages in the western and central parts of southern Lebanon. Details on casualties or the scale of material damage were not immediately available.

Lebanon’s Health Ministry said the death toll from Israeli attacks has risen to 4,346 since the attacks began in southern Lebanon on March 2. More than 12,000 people have been injured during the same period, according to the ministry’s latest figures reported on August 16, 2026.

The reported fatalities include 393 women and 257 children. At least 135 health workers have also been killed in Israeli attacks, the ministry said. It added that civilian casualties in Lebanon continue to rise amid the ongoing attacks.

On Saturday, Israeli attacks in the towns of Deir ez-Zahrani and Ansar killed another 11 people, including children. The latest ministry tally covers casualties recorded since the start of the reported attacks in southern Lebanon on March 2.

The Ali al-Taher ridge, near Lebanon’s Nabatieh district and north of the Litani River, has become a significant focus of renewed conflict between Israel and Hezbollah. Tensions around the strategic highland have increased since fighting resumed on March 2. Its elevation and location could allow the controlling side to monitor and potentially influence movement across the surrounding Nabatieh-Litani area.

The ridge forms part of a wider defence and surveillance arrangement with Beaufort Castle and nearby strategic highlands. These positions can complement each other in surveillance and artillery capability. Israeli forces had been stationed in the Ali al-Taher area before their withdrawal from southern Lebanon in 2000, after which Hezbollah developed the area as part of its defence infrastructure.

After capturing Beaufort Castle and surrounding areas in May, Israel has sought to retain control of Ali al-Taher and several other strategic positions in southern Lebanon. Israel says Hezbollah has a command centre and underground weapons facilities beneath the ridge, and has urged the Lebanese army to take responsibility for the area. Lebanon’s government and Hezbollah describe the Israeli presence as a violation of Lebanese sovereignty.

Hezbollah warned Israel of an “appropriate response” following recent Israeli airstrikes in southern Lebanon, according to a report published on August 16, 2026. The group said it would no longer accept Israeli attacks on Lebanon, alleged violations of ceasefire terms, or attempts to impose decisions. It also urged the Lebanese government to halt direct talks with Israel.

In a statement, Hezbollah said Israel must understand that it no longer has room to attack or interfere in Lebanese affairs. The group accused Lebanese authorities of moving toward what it described as “humiliating direct negotiations” with Israel and granting Israel concessions without charge. Hezbollah called for both the talks and the concessions to stop.

Lebanese authorities said at least 11 people, including three children, were killed in Israeli strikes on Ansar and Deir al-Zahrani on Saturday. Israel’s military said it targeted Hezbollah infrastructure and command-related sites after three Israeli soldiers were wounded in a Hezbollah attack. It also claimed to have killed senior Badr Unit commander Abu Hassan Ala and Hezbollah commander Ali Samir al-Haj Hassan in Ansar.

The Arab League has strongly condemned Israel’s ongoing attacks in Lebanon after 11 people were reported killed in strikes on Saturday. It described the attacks as a dangerous escalation that threatens to undermine all efforts to resolve the continuing conflict. The report was published on August 16, 2026.

An Arab League spokesperson said Israel’s policies and actions openly show an intention to prolong the conflict, obstruct negotiations and impose a new reality. The spokesperson called that reality completely unacceptable and rejected. The governments of Lebanon and Iran had also condemned Saturday’s attacks earlier.

The spokesperson warned that the conflict could spread further unless the international community, particularly Washington, stops Israel’s “war machine” and compels it to comply with UN Security Council Resolution 1701. Adopted in 2006, the resolution calls for a full cessation of hostilities between Israel and Hezbollah. It also calls for an immediate halt to all Hezbollah attacks and all offensive Israeli military operations.

Israel's military said two Hezbollah commanders were killed in strikes in southern Lebanon, according to a report published on August 16. In a Sunday post on X, it said senior Bader Unit commander Abu Hassan Ala was killed for allegedly preparing attacks against Israeli troops, including explosive drone attacks. Israel said the killing responded to Hezbollah activity against its soldiers in a “security zone.”

Hours earlier, Israel said it killed Ali Samir al-Haj Hassan in a strike on Ansar village. It described him as a battalion commander in Hezbollah's Radwan force and said it targeted a central headquarters. Lebanese Prime Minister Nawaf Salam disputed the military-site claim, saying those killed in Ansar were not in a military facility and that women and children were not military targets.

Lebanon's Health Ministry said Saturday strikes killed seven people at a house in Ansar and four others in a separate attack on Deir al-Zahrani. The dead included two women and three children, while 19 people were wounded. Hezbollah said it would deliver an appropriate response. President Joseph Aoun called the attack a clear message against efforts to implement the ceasefire.

Iran condemned an Israeli attack in the Nabatieh area of southern Lebanon that reportedly killed at least 11 people, including members of one family. In a report published on August 16, 2026, Tehran said Lebanon has a legal and legitimate right to use all means to defend its existence against Israeli aggression.

Foreign Ministry spokesperson Esmail Baghaei called the attack targeting family members highly condemnable. He said the strikes were part of what Iran described as Israel’s continuing aggression and violations of Lebanon’s national sovereignty and territorial integrity. Baghaei called for the immediate withdrawal of Israeli forces from occupied Lebanese territory and praised what he termed the Lebanese people’s “honourable resistance.”

Baghaei also criticized the UN Security Council’s continuing silence and inaction over alleged violations of international and humanitarian law. He reaffirmed Iran’s solidarity with Lebanon in protecting its sovereignty, independence and dignity. Hezbollah had earlier denounced the incident as a “brutal massacre.” Washington and Tel Aviv have been pressing for Hezbollah’s disarmament, while Hezbollah has repeatedly rejected the calls and said a June 26 framework agreement violated Lebanon’s constitution.

Several Israeli airstrikes in southern Lebanon on Saturday killed at least 11 people, including two women and three children, and wounded 19 others, according to Lebanon’s Health Ministry. Seven people were killed when Israeli warplanes struck a house in Ansar village, while four more were killed in a separate strike on Deir al-Zahrani. The report described the attacks as among the deadliest in Lebanon since a US-mediated ceasefire took effect on April 16.

Lebanon’s state news agency NNA said further airstrikes were carried out across southern Lebanon and described them as the deepest strikes into Lebanese territory in two months. The Israeli military said it had targeted a “central headquarters” of Hezbollah’s elite Radwan Force in Ansar. It said Radwan battalion commander Ali Samir al-Hajj Hassan was killed in the strike.

Israel said Hassan’s family members were inside the alleged military headquarters during the attack but were not targets. Hezbollah said it would give an appropriate response. Lebanese Prime Minister Nawaf Salam said those killed in Ansar were not at a military facility, while President Joseph Aoun called the attack a clear message against efforts to implement the ceasefire agreement.

Seven people were killed in an Israeli airstrike on the town of Ansar in southern Lebanon, the country’s civil defence department said. The attack was carried out early Saturday, according to the report published and updated on August 15, 2026.

Quds News Network had earlier reported that Israel struck the outskirts of Ansar in Nabatieh district and areas near Nabatieh al-Fawqa. According to Al Jazeera, Israeli forces also blew up several houses in Bint Jbeil during the early morning.

The report said Israeli forces carried out heavy gunfire in residential areas beside the Kounine-Saf al-Hawa road. An attack was also reported in the Al-Masha neighbourhood of Al-Mansouri town in Tyre district. Israeli forces were additionally reported to be attempting to advance to take control of areas around Ali al-Taher hill.

Hezbollah Secretary-General Sheikh Naim Qassem said Israel understands only the language of force, according to a report published on August 15, 2026. He made the remarks in a speech marking the anniversary of Hezbollah’s claimed victory over Israel in the 2006 war.

Qassem said the 2006 war began after Hezbollah captured two Israeli soldiers. He described the stated purpose of that action as securing the release of Lebanese people held in Israeli prisons.

According to Qassem, the capture of the Israeli soldiers came after all communication and diplomatic efforts to secure the release of Lebanese prisoners had failed. He said the step was necessary to fulfill a commitment not to abandon prisoners held in Israeli jails.

A senior US State Department official warned that a permanent Israeli military presence in southern Lebanon is undermining a long-term peace plan. In remarks reported on August 13, 2026, the official said such a presence is inconsistent with commitments made under an agreement and is not conducive to lasting peace and security for Lebanon and Israel.

Lebanon and Israel signed a framework agreement last June with US support. The agreement called for the complete withdrawal of Israeli troops from Lebanese territory and the disarmament of Iran-backed Hezbollah.

The warning followed Israeli Defence Minister Israel Katz’s statement that Israeli forces would remain in a so-called security zone in southern Lebanon. Responding anonymously, the US official said Washington expects all parties to act consistently with the framework they agreed to. The official also said Israel had made clear that it has no territorial ambitions in Lebanon.

Lebanon’s parliament passed a long-awaited general amnesty law on Wednesday, according to a report published on August 13, 2026. The measure is expected to benefit thousands of prisoners and fugitives. It was approved during a parliamentary session, though authorities did not immediately say how many people would qualify.

Political parties had been calling for passage of the law. Its stated aim is to reduce overcrowding in prisons, where many detainees have spent years awaiting trial. The office of the parliament speaker announced approval of draft legislation to grant amnesty and, exceptionally, reduce the duration of certain specified sentences.

The issue of amnesty returned to discussion after the fall of former Syrian ruler Bashar al-Assad in 2024. The report said many prisoners in Lebanon had been jailed in connection with events related to the Syrian civil war. No immediate official estimate was provided on the total number of people expected to benefit from the newly passed law.

Residents, civil defense workers and environmental groups have accused Israeli forces of deliberately setting fires that are damaging forests, farmland and homes in southern Lebanon. Local officials said Israeli forces fired flares into woodland outside Khiam on Tuesday, after which a fire spread. Nabatieh civil defense chief Hussein Fakih said firefighters responding to blazes had come under drone attack and were forced to withdraw for safety.

Although a ceasefire between Hezbollah and Israel took effect on June 17, rescue workers and video footage indicate that fires have continued in southern Lebanon. Fakih estimated that about 30 to 40 percent of land near the border and combat zones had been affected, while noting he had no precise figures. He alleged the use of incendiary bombs, small drones dispersing flammable material, white phosphorus shells and illumination flares. The Israeli military did not respond to a request for comment.

Kfarchouba civil defense chief Samir Hardan said permission restrictions also limited firefighting operations. Environmental advocates warned of long-term damage to biodiversity and livelihoods. Yaroun Mayor Hafez Ghasem said satellite images bought by displaced residents showed 880 of the village's 900 homes had been bulldozed, and alleged that olive and fruit orchards were also set on fire.

Local firefighters and residents have accused the Israeli military of deliberately causing wildfires in southern Lebanon through attacks and shelling. The Guardian reported on August 12, 2026, that fires have spread through forests, olive groves and farmland despite a ceasefire, allegedly due to drones, incendiary shells and flares.

Hussein Fakih, head of Civil Defense in the Nabatieh area, said most recent operations had become limited to firefighting. He said about 30 to 40 percent of land in border areas had been damaged by fire. Environmentalists described the fires as part of a long-running pattern of environmental destruction in southern Lebanon.

They said damage to forests, ancient olive trees and wildlife habitats threatens biodiversity and local livelihoods. Hafez Ghasham of Yaroun alleged that after Israeli forces destroyed most homes in his village, they also set fire to remaining olive trees and fruit orchards. Local residents say the actions seek to make the area uninhabitable and erase signs of their history, culture and livelihoods. The Israeli military did not respond to a request for comment on the recent fire allegations.