Ongoing Israeli military operations in southern Lebanon, including intensified airstrikes and ground efforts to dismantle Hezbollah tunnel networks and infrastructure around strategic ridges like Ali al-Taher, continue to shape trader assessments of further action. Following a U.S.-brokered ceasefire earlier in 2026, recent escalations have included waves of strikes killing dozens and targeted eliminations of Hezbollah commanders, amid stalled bilateral talks and Israeli domestic political timelines. Lebanese officials have called for expanded international forces to replace UNIFIL, while Hezbollah maintains rocket and drone responses. Upcoming diplomatic rounds and any shifts in Israeli policy post-elections remain key variables that could alter the pace of operations or enforcement of border security zones.