Israeli and Lebanese officials reached a US-brokered framework agreement in late June 2026 establishing pilot zones for phased Israeli withdrawals from select sites north and south of the Litani River, with the Lebanese Armed Forces assuming security responsibilities in those areas. This followed earlier May advances by Israeli forces across the river and new evacuation orders extending toward the Zahrani River amid the broader 2026 Lebanon conflict. Implementation depends on simultaneous Hezbollah redeployment north of the Litani, verified cessation of cross-border fire, and Lebanese army deployment timelines. Trader sentiment reflects uncertainty over enforcement of these commitments, the status of any 60-day transition periods, and risks of renewed clashes that could delay or derail the process.