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The Levant is in a state of open war, with Israel executing a sustained air and ground campaign against Hezbollah in Lebanon, while regional powers like Iran and Western nations engage in a high-stakes diplomatic and economic struggle over the conflict's trajectory.
March 2026
Week of Mar 30, compared to 12-week average
critical of Hezbollah, sympathetic to Israeli security concerns
Regional economies are under severe war pressure, prompting urgent infrastructure planning and reconstruction announcements. Lebanon's markets are under direct pressure, while Iraq, Jordan, and Egypt push for a new oil pipeline and Syria announces a 50% salary increase and reconstruction plan. Saudi Arabia, Qatar, and Jordan are seeking joint Arab action on economic troubles.
Diplomatic relations are fracturing over the Lebanon war, with Lebanon expelling Iran's ambassador and Iran refusing to recall him. Western nations, including France, are warning Israel against expanding its ground offensive, while an Israeli minister calls for annexing southern Lebanon. Lebanon has also postponed parliamentary elections and banned Hezbollah's military activities.
Israel is conducting a major military campaign against Hezbollah, involving widespread airstrikes across Lebanon, including central Beirut, and the beginning of ground operations in the south. The conflict has escalated with heavy cross-border fire exchanges and Israeli authorization for strikes in Lebanon and Iran.
Dominant public anger in Lebanon is directed at Hezbollah for dragging the country into war with Israel, expressed as 'self-destructive' and suicidal. This domestic backlash coincides with international warnings of a humanitarian crisis and allegations of Israel using white phosphorus.
