The ongoing conflict between Israel and Hezbollah is a major concern for Lebanon, which is currently enduring a severe economic crisis. Hyperinflation and the constant erosion of the Lebanese pound have led many citizens to turn to cryptocurrency as a means of survival. This economic instability only worsens with the ongoing fighting, as it leads to potential recruitment of citizens from weaker strata into the ranks of Hezbollah.
The destruction in southern Lebanon, caused by the volleys of rockets launched by Hezbollah, is causing serious economic damage to the agriculture-focused region and leading to the evacuation of tens of thousands of people. This has had a significant impact on Lebanon’s economy as a whole, as southern Lebanon is a major center of agricultural activity.
Hezbollah, which has political influence in the Lebanese government, has been accused by Tehran of launching these attacks. Despite this involvement, Nasrallah, the leader of Hezbollah, is aware of the impact that the Second Lebanon War had on the memory and consciousness of the Lebanese people and seeks to avoid any further conflicts that could harm their country’s stability.
Efforts for a peaceful resolution are ongoing, but there is concern about the potential for full-scale war if tensions continue to escalate. The successful tourism industry in Lebanon accounts for about 20% of its GDP and could be severely impacted if conflict continues without a peaceful resolution. The economic consequences may provide further motivation for both sides to work towards peace.